On Tuesday, a federal judge in San Jose dismissed some of the charges against Holmes and the company’s ex-president Ramesh “Sunny” Balwani. The judge ruled prosecutors could not continue to pursue charges that allege Holmes and Balwani defrauded doctors or customers who used Theranos blood tests that did not work as advertised. Because the tests were paid for by their insurance companies, individuals were not technically defrauded of money or property.
Although it’s a small legal victory for the Theranos executives, they did not achieve their main aim of getting the entire indictment thrown out. Holmes and Balwani have argued the case should be dismissed because prosecutors can’t prove anyone was actually harmed by the blood tests.