Previously on the Dropout.
The SEC charged Elizabeth Holmes and Sonny Balwani with running an elaborate years long.
Fraud, multimillion dollar scheme to defraud investors.
Doctors and patients, exaggerated or made false statements about the company's technology, business and financial performance that Elizabeth Holmes is stepping down as the chief executive officer.
Elizabeth settled without admitting wrongdoing.
She was stripped of her control of theranos and agreed to pay a $500,000 fine.
The Department of Justice followed suit.
Elizabeth and Sonny were now facing criminal charges and decades in prison.
If convicted, Sonny's lawyer vowed he would fight the charges.
I think that this is a big business failure.
They made mistakes along the way in executing a business plan, but that's not fraud.
But where does that leave Elizabeth Holmes?
From ABC radio and Nightline, this is the dropout, episode six what now?
Hi, this is Megan.
Hey, Megan, it's Rebecca Jarvis in New York.
How are you?
I'm doing well.
Rebecca, how are you doing?
You're listening to Megan Long.
She first met Elizabeth Holmes in 1995 when they started 6th grade together at St.