Elizabeth Holmes, the founder and former CEO of Theranos, has faced a setback in her legal battle after her appeal against her conviction for deceiving investors in her blood-testing firm was denied.

Holmes is currently serving a sentence of more than 11 years behind bars.

In her defense, Holmes disputed the evidence and testimonies presented during her trial, claiming that remarks made by her ex-business partner and romantic associate, Ramesh “Sunny” Balwani, regarding his responsibility for Theranos’ financial operations should have been considered. Balwani himself is serving over 12 years in prison.

The Ninth Circuit Court of Appeals dismissed her arguments without favor.

Judge Jacqueline H. Nguyen stated that Theranos’s assertion of being able to conduct blood tests using just a drop from a finger prick rather than a traditional needle was “nothing more than a mirage.”

In a published opinion representing a panel of three judges, Nguyen emphasized that the “grandiose achievements” promoted by Holmes and Balwani were a mix of partial truths and blatant falsehoods.

In 2022, Holmes was found guilty of conspiracy and various counts of wire fraud for misrepresenting the financial state of Theranos and the efficacy of its technology.

Balwani, who was tried separately and faced additional charges for defrauding patients, also had his appeal rejected.

Both Holmes and Balwani challenged a court ruling mandating them to pay $452 million (£358 million) in restitution to their victims, but the court upheld this decision.

During her appeal, Holmes contended that Balwani’s claims of “owning” the company’s financial model were pertinent and should have been included in the trial proceedings.

Holmes’s legal team also argued that testimonies from former Theranos employees should have been excluded, and a government inspection report should not have served as admissible evidence—all claims that the court ultimately dismissed.

Once valued at $9 billion (£7 billion), Theranos was a prominent player in Silicon Valley.

However, in late 2015, media revelations uncovered internal difficulties within the company and highlighted the shortcomings of its technology. This prompted a grand jury investigation lasting two and a half years, culminating in the indictments of Holmes and Balwani, leading to their convictions and subsequent sentences.

Holmes began her prison term in Texas in 2023.