‘The Dropout’: Inside Elizabeth Holmes’ Backstory and the Theranos Scandal

Credit: Shutterstock; Hulu

‘The Dropout’: Inside Elizabeth Holmes' Backstory and the Theranos Scandal

Stranger than fiction. The Dropout follows the controversy surrounding Elizabeth Holmes and her company Theranos, and the details of the scandal are so wild that they were practically made for TV. Amanda Seyfried stars as Holmes in the Hulu miniseries, which premiered on Thursday, March 3. In anticipation of the role, the actress, 36, did her research, telling Harper’s Bazaar in February that she “prepared like a motherf--ker.” “The first choice you have to make is no judgments when you play somebody,” the Mean Girls star elaborated. “I can’t diagnose anybody. And I also think we’re all so nuanced. We’re built on so many different experiences, from childhood to where we are now. And I got to study. There’s a lot of information out there, and I was privy to all of it.” The Dropout is not the first pop culture deep dive into Holmes’ story. She was already the subject of a book titled Bad Blood: Secrets and Lies in a Silicon Valley Startup, a podcast called “The Dropout” and HBO documentary The Inventor: Out for Blood in Silicon Valley. So, Seyfried used the existing material to her advantage in addition to interviews conducted by the series’ creator, Elizabeth Meriwether. “We got information,” the Mamma Mia! actress said. “I Zoomed some people. I studied the s--t out of the deposition tapes because it’s about capturing an essence.” [sendtonews type="float" key="CxwMxEhnKu-2834150-14453"] Seyfried’s goal was to make it hard for viewers to “uncover the Amanda” in her portrayal. “In this, I hope that I disappear,” she explained. “I did my best to soak it in, and when it was time to play her, I was like, ‘Oh, God, what am I doing? Am I doing it right?’ But then, you know, you get used to it. It’s muscle memory, right?” Despite the Mank star’s attempts to properly impersonate Holmes, 38, she did not let perfectionism ruin her experience. “I knew my voice was never going to be as deep as hers because I’m physically not capable of it,” she told The Hollywood Reporter in February. “Besides, I promised I wasn’t going to give myself a hard time and try to completely mimic this other human being. It’d be impossible. And just not fun.” Holmes herself was criticized for seemingly adopting a persona that was not real, which adds another layer of intrigue to The Dropout. “I’m acting as Elizabeth Holmes acting,” Seyfried told Vanity Fair in February. Scroll through the gallery below to learn more about Holmes, Theranos and the scandal that brought them both down.

Credit: Shutterstock; Hulu

‘The Dropout’: Inside Elizabeth Holmes' Backstory and the Theranos Scandal

Stranger than fiction. The Dropout follows the controversy surrounding Elizabeth Holmes and her company Theranos, and the details of the scandal are so wild that they were practically made for TV. Amanda Seyfried stars as Holmes in the Hulu miniseries, which premiered on Thursday, March 3. In anticipation of the role, the actress, 36, did her research, telling Harper’s Bazaar in February that she “prepared like a motherf--ker.” “The first choice you have to make is no judgments when you play somebody,” the Mean Girls star elaborated. “I can’t diagnose anybody. And I also think we’re all so nuanced. We’re built on so many different experiences, from childhood to where we are now. And I got to study. There’s a lot of information out there, and I was privy to all of it.” The Dropout is not the first pop culture deep dive into Holmes’ story. She was already the subject of a book titled Bad Blood: Secrets and Lies in a Silicon Valley Startup, a podcast called “The Dropout” and HBO documentary The Inventor: Out for Blood in Silicon Valley. So, Seyfried used the existing material to her advantage in addition to interviews conducted by the series’ creator, Elizabeth Meriwether. “We got information,” the Mamma Mia! actress said. “I Zoomed some people. I studied the s--t out of the deposition tapes because it’s about capturing an essence.” [sendtonews type="float" key="CxwMxEhnKu-2834150-14453"] Seyfried’s goal was to make it hard for viewers to “uncover the Amanda” in her portrayal. “In this, I hope that I disappear,” she explained. “I did my best to soak it in, and when it was time to play her, I was like, ‘Oh, God, what am I doing? Am I doing it right?’ But then, you know, you get used to it. It’s muscle memory, right?” Despite the Mank star’s attempts to properly impersonate Holmes, 38, she did not let perfectionism ruin her experience. “I knew my voice was never going to be as deep as hers because I’m physically not capable of it,” she told The Hollywood Reporter in February. “Besides, I promised I wasn’t going to give myself a hard time and try to completely mimic this other human being. It’d be impossible. And just not fun.” Holmes herself was criticized for seemingly adopting a persona that was not real, which adds another layer of intrigue to The Dropout. “I’m acting as Elizabeth Holmes acting,” Seyfried told Vanity Fair in February. Scroll through the gallery below to learn more about Holmes, Theranos and the scandal that brought them both down.

Credit: Beth Dubber/Hulu

Who Is Elizabeth Holmes?

Holmes is the founder and former CEO of Theranos. She was born in February 1984 and was interested in inventing as a child. She wanted to go into medicine but was scared of needles, which inspired her to launch Theranos. The entrepreneur attended Stanford University, where she studied chemical engineering, but she dropped out in 2004 after founding her company the year before. 

The Washington, D.C. native was inspired by Steve Jobs and started dressing in the former Apple CEO’s signature black turtlenecks. She also allegedly made her voice deeper in an effort to be taken seriously in her male-dominated industry.  

Holmes became the world’s youngest self-made female billionaire in 2014. Her net worth was estimated to be approximately $4.5 billion.

Credit: Michael Desmond/Hulu

What Is Theranos?

Holmes founded Theranos in 2003 with the idea that she could invent a way to perform blood tests using only a small amount of blood obtained from a finger prick. When asked to describe how the technology worked, she vaguely told The New Yorker in 2014, “A chemistry is performed so that a chemical reaction occurs and generates a signal from the chemical interaction with the sample, which is translated into a result, which is then reviewed by certified laboratory personnel.”  

The businesswoman raised more than $700 million from high-profile investors with the understanding that she would not explain how the technology worked. As Holmes gained attention, Theranos landed partnerships with major companies such as Walgreens, which opened Theranos testing centers in its stores.

Credit: Beth Dubber/Hulu)

Who Is Sunny Balwani?

Holmes began dating the Theranos president and COO shortly before she dropped out of college at age 19, despite their nearly 20-year age difference. They met when she was in Stanford’s summer Mandarin program in the months before she went to the university.  

Balwani, now 56, served as Holmes’ right-hand man at the company, but the two broke up in 2016 when he exited Theranos.   

Holmes later claimed that Balwani sexually and emotionally abused her during their relationship and, as a result, impaired her mental state. He denied the allegations.

Credit: Jeff Chiu/AP/Shutterstock

What Did Holmes and Her Company Do Wrong?

As Theranos grew, the company’s chief scientist allegedly warned Holmes that her blood-testing technology did not work. The FDA launched an investigation in August 2015 amid suspicions that test results were inaccurate. Wall Street Journal reporter John Carreyrou wrote an exposé in October 2015 that claimed Theranos’ blood-testing machine, Edison, could not deliver correct results, so the company was running samples through machines made by other manufacturers and used by traditional blood-testing outfits.   

“This is what happens when you work to change things, and first they think you’re crazy, then they fight you and then all of a sudden you change the world,” Holmes said on Mad Money amid the allegations. 

Credit: Beth Dubber/Hulu

What Was the Fallout From the Scandal?

By October 2016, Theranos had ceased its lab operations and closed its wellness centers. 

Holmes, Theranos and Balwani were charged with “massive fraud” by the SEC in March 2018. She agreed to relinquish financial and voting control of the company, pay a $500,000 fine and return shares of Theranos stock.  

In June 2018, Holmes and Balwani were charged with 12 counts of fraud, including 10 counts of federal wire fraud and two counts of conspiracy to commit wire fraud. They both pleaded not guilty. She stepped down as CEO at the time, and Theranos announced its plans to shutter in September 2018.  

Credit: Nic Coury/AP/Shutterstock

What Happened During the Trial and Aftermath?

Holmes' began in September 2021 after delays caused by the coronavirus pandemic. She admitted in her testimony that she hid the company’s use of commercial blood-testing machines from investors but claimed that Theranos’ legal team told her that the changes the company made to the devices were considered trade secrets.  

In January, a jury found Holmes guilty on four counts of defrauding investors — three counts of wire fraud and one count of conspiracy to commit wire fraud. They found her not guilty on four counts of defrauding patients and did not reach a verdict on three counts of wire fraud against investors. The latter charges were subsequently dismissed. 

Amid her legal woes, Holmes tied the knot with Billy Evans — the heir to a hotel chain in California — in June 2019. She gave birth to their son in July 2021.

Balwani, for his part, was convicted on 12 counts of fraud and conspiracy in July 2022. 

Credit: Peter DaSilva/EPA-EFE/Shutterstock

What Is Holmes' Prison Sentence?

Holmes, who is pregnant with her and Evans' second child, was sentenced to 11 years and three months in prison in November 2022, per multiple outlets. After completing her sentence, she will have to complete three years of supervision upon her release and pay $100 per each count of fraud, per CNN.

Holmes sobbed in court, per the Associated Press, saying, “I regret my failings with every cell of my body."

Credit: Jeff Chiu/AP/Shutterstock

What Is Balwani’s Prison Sentence?

Five months after being convicted, the former Theranos president was sentenced to 155 months — nearly 13 years — in prison, multiple outlets reported in December. He must also complete three years of probation.