Disgraced Theranos founder Elizabeth Holmes in court

Former CEO and billionaire Elizabeth Holmes appeared in court on fraud and conspiracy charges. She's accused of misleading her blood-testing startup investors and faces up to 20 years in prison.
3:18 | 07/18/19

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Transcript for Disgraced Theranos founder Elizabeth Holmes in court
Now to Elizabeth Holmes appearing this court to face fraud and conspiracy charges accused of misleading investors about her blood testing start-up. She could get up to 20 years behind bars. Rebecca Jarvis has been covering the story very closely. Good morning, Rebecca. Yeah, good morning to you, robin. This is a skafrn dal that's rocked silicon valley, sent shock waves across the country. Elizabeth Holmes, the young founder once celebrated as the next Steve skwobs whose technology was supposed to make blood testing less painful and less expensive now facing multiple fraud and conspiracy charges back in court. Disgraced theranos founder and CEO Elizabeth Holmes who promised to revolutionize blood testing seen walking into a San Jose courthouse. Her attorney setting the stage for what is sure to be a fireworks-filled criminal charge winning an order for regulators to hand over millions of documents they say are pivotal to the defense. Now 35 years old, Holmes dropped out of Stanford at just 19 to launch her health care start-up. She and her co-defendant former boyfriend and coo sonny balwani are charged with multiple counts of today and conspiracy to commit fraud and pleaded not guilty but if convicted both could face serious prison time. Do you swear to tell the truth, the whole truth and nothing but the truth? I do. Reporter: They claimed as early as 2010 their technology could run hundreds of tests on just a few drops of blood. Holmes later admitting to the S.E.C. That wasn't the case. How many tests could it run at that time in 2010? I don't know exactly what the number was. There was probably tens of tests. Reporter: Based on those early promises their technology briefly made it into 41 Walgreens stores potentially putting thousands of patients' lives in danger due to unreliable test results. But since her company theranos folded last year, Holmes has been spotted at times seemingly living it up partying with fiancee Billy Evans, a hotel heir. A lot think it was heartless you were partying at burning man when your company was closing its doors. Reporter: According to insiders, Holmes even considering launching a new company. Her attorneys declining to comment outside court. An attorney for balwani telling us late last year he is confident there will be acquittals and Elizabeth Holmes and sonny face up to decades in prison, hundreds of thousands of dollars in fines if convicted. Both have pleaded not guilty. Their trial date set for August 2020 and expected to take three months and we were just talking about the fact this is a company that was in business for over a decade. Now it's coming to this and got into the hands of so many people in this country as well. Through your podcast, you've done the reporting on this. Thank you. Yeah, it's been quite the story. Remarkable just to see how far and how long it lasted and how big this company became. At one point worth almost $10 billion. Today it's folded worth nothing, no longer in Walgreens. You can't get a theranos test anywhere but the ripple effect is still present in the country. That, it is. Thank you, Rebecca. Thank you, Rebecca.

This transcript has been automatically generated and may not be 100% accurate.

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