New Developments in the Elizabeth Holmes Saga Are Quite Startling
Holmes dropped out of Stanford at 19 to launch Theranos, a now-defunct blood testing company.
Holmes was convicted of investment fraud and conspiracy on Jan. 3 and was to be sentenced this month. Instead of sentencing her on Oct. 17, the court will convene an evidentiary hearing to investigate if prosecutors influenced a crucial witness during her four-month trial.
Holmes moved for a new trial on Sept. 6 based on Adam Rosendorff’s testimony. Rosendorff, who testified during Holmes’ trial that he raised concerns about the accuracy of blood testing, regrets his statement, according to the 17-page court document. Rosendorff testified in Ramesh “Sunny” Balwani’s trial.
The federal judge overseeing Holmes’ fraud prosecution called an evidence hearing this week via Zoom. Rosendorff will testify.
Rosendorff allegedly told Holmes’ associate William Evans that prosecutors made Theranos seem terrible. Rosendorff also tried to contact Holmes’ attorney, Lance Wade of Williams & Connolly, but Wade told U.S. District Judge Edward Davila he could not engage with Rosendorff owing to ethical constraints on attorneys’ dealings with represented parties.
During the status conference, the court said the witness’s behavior is “highly unusual”
Davila: “I haven’t seen a case where this has happened before, The allegation is the possibility that the government may have engaged in misconduct. The court takes that seriously.”
During the status conference, prosecutors claimed that the evidentiary hearing is unnecessary because Rosendorff signed a sworn declaration on Sept. 15 saying he answered all trial questions truthfully and stands by his evidence.
“Nothing I have learned since giving my testimony has changed my recollection of the events I witnessed during my time at Theranos,” Rosendorff said. “I stand by my testimony at Ms. Holmes’ and Mr. Balwani’s trials in every respect.”
Rosendorff says he has no reason to believe the government misrepresented Holmes or Balwani’s Theranos activities.
“Nevertheless, I feel compassion for Ms. Holmes and Mr. Balwani, and even more so for the members of their families who were not responsible for their conduct but will be affected by the punishment they may receive,” he said.