Theranos Inc. founder Elizabeth Holmes will appear in court again this month on a case that she deserves a new trial based on her claims that the government tampered with the testimony of a key witness who opposed she testified.
The hearing was granted on Monday by the judge presiding over the month-long fraud trial of Ms Holmes. The verdict marks a victory for Ms Holmes in her quest for a new trial, nine months after a jury convicted her on four counts of wire fraud and conspiracy. Her lawyers have argued that new evidence relating to the witness, former Theranos lab director Adam Rosendorff, shows the government provided misleading testimony that may have influenced the jury’s decision.
US District Judge Edward Davila has set the hearing for October 17, when her sentencing was originally scheduled. The sentencing, if the judge does not allow a new trial, would be delayed at least until November.
The post-trial hearing continues the spectacular saga of fraud that unfolded in court with a jury trial over a year ago. Ms Holmes has been charged with 11 counts of wire fraud and conspiracy for running a year-long program at Theranos, the defunct blood-testing startup she founded and ran as chief executive until 2018. In January, a jury convicted her of four counts of fraud in deceiving investors. Her former business and love partner, former Theranos President Ramesh “Sunny” Balwani, was convicted of 12 counts of fraud in July. He is due to be sentenced in November.
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Judge Davila denied Ms Holmes’ motion for acquittal last month. Around the same time, she filed three separate applications to seek a new trial. The judge has yet to rule, and the only motion set to be discussed at the day-long hearing later this month involves Dr. Rosendorff, who headed Theranos’ lab from 2013 to 2014 and testified for five days at Ms Holmes’ trial.
According to a court filing held by Mrs Holmes’ lawyers, Dr. Rosendorff showed up unannounced at her home on August 8 and spoke to Mrs. Holmes’ partner Billy Evans. During this conversation, Dr. Rosendorff told Mr Evans that the government had misrepresented his testimony and that during the trial he “attempted to answer the questions honestly” but that the government made things sound worse than they were, according to the filing.
A federal jury convicted Theranos founder Elizabeth Holmes on four out of 11 counts. Each charge carries a maximum prison sentence of 20 years. WSJ’s Sara Randazzo shares highlights from Holmes’ testimony. Photo: Josh Edelson for The Wall Street Journal
dr Rosendorff later filed an affidavit that said, among other things, “I have answered every question put to me fully, accurately and truthfully to the best of my knowledge and belief.” He added, “I have no reason to believe that the government will Misrepresented or misrepresented the behavior of Ms. Holmes or Mr. Balwani in Theranos.”
During a virtual hearing on Monday, Lance Wade, an attorney for Ms Holmes, said the “extraordinary circumstances” of a government witness who showed up at the home of a convicted felon after the trial warranted further investigations into whether the government ordered Dr. misrepresented Rosendorff’s testimony.
“There was at least misleading information that came about, whether it was intentional or not,” Mr. Wade said. “He may be upset because he feels the evidence has been misrepresented by the government.”
During the trial, Mr. Wade questioned Dr. Rosendorff for almost four days, longer than the government interrogated him. When reachable by phone, Dr. Rosendorff for a statement.
Judge Davila expressed skepticism about the defense’s arguments, asking, “Is this a fishing trip?”
The judge also noted that Ms. Holmes was acquitted of the charges against her related to Theranos’ treatment of patients – the charges for which Dr. Rosendorff was most relevant as a laboratory manager who interacted with patients and doctors. Ms. Holmes was convicted of defrauding investors in Theranos by lying about the company’s financial position, business prospects and technology.
Nonetheless, Dr. Rosendorff was recalled in court for what Judge Davila called a limited hearing. “What I really want to know is, were you telling the truth?” Judge Davila said he was trying to get Dr. to learn Rosendorff.
write to Heather Somerville at [email protected]
Theranos and the Trial of Elizabeth Holmes
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