Elizabeth Holmes Gets Fraud Case Narrowed, Not Dismissed (1)

Theranos Inc. founder Elizabeth Holmes thinned the criminal charges she faces but failed in a long-shot attempt to get the entire indictment against her thrown out.

Elizabeth Holmes in 2019.

Photographer: Michael Short/Bloomberg

A federal judge in San Jose, California, ruled Tuesday that prosecutors can’t pursue charges that rely on claims that Holmes and ex-Theranos President Sunny Balwani defrauded doctors or customers who didn’t pay for the company’s blood tests.

While the ruling narrows the case, it leaves intact the bulk of charges that investors were defrauded in the collapse of the blood-testing startup that was once valued at $9 billion.

And it means the U.S. ...