Theranos Founder Elizabeth Holmes Gets Hearing on New Trial

U.S. District Judge

Edward Davila

has set the hearing for Oct. 17, when her sentencing had originally been scheduled. Sentencing, if the judge doesn’t grant a new trial, would be delayed at least into November.

The post-trial hearing further prolongs the spectacle-laden criminal-fraud saga that began to play out in court with a jury trial over a year ago. Ms. Holmes was charged with 11 counts of wire fraud and conspiracy for running a yearslong scheme at Theranos, the defunct blood-testing startup she founded and ran as chief executive until 2018. In January, a jury convicted her on four counts of fraud for deceiving investors. Her one-time business and romantic partner, former Theranos President Ramesh “Sunny” Balwani, was convicted of 12 fraud counts in July. He is set to be sentenced in November.

Judge Davila last month denied Ms. Holmes’s motion for an acquittal. Around the same time, she filed three separate motions seeking a new trial. The judge hasn’t ruled on them, and the only motion to be discussed at the one-day hearing later this month centers on Dr. Rosendorff, who ran Theranos’s lab from 2013 to 2014 and testified across five days in Ms. Holmes’s trial.

According to a court filing from Ms. Holmes’s attorneys, Dr. Rosendorff showed up at her house unannounced on Aug. 8 and spoke to Ms. Holmes’s partner, Billy Evans. During that exchange, Dr. Rosendorff told Mr. Evans that the government had twisted his testimony, and that he “tried to answer the questions honestly” during the trial, but that the government made things sound worse than they were, according to the filing.

Dr. Rosendorff later filed a sworn declaration, which said, in part, “I answered every question put to me completely, accurately, and truthfully to the best of my ability.” He added: “I have no reason to believe that the government misrepresented or created a misimpression about Ms. Holmes’ or Mr. Balwani’s conduct at Theranos.”

During a virtual hearing on Monday,

Lance Wade,

an attorney for Ms. Holmes, said the “extraordinary set of circumstances” of a government witness showing up at a convicted felon’s house after trial warranted further exploration about whether the government twisted Dr. Rosendorff’s testimony.

“There was at least misleading information that came about, setting aside whether it was intentional or not,” said Mr. Wade. “He may feel upset because he feels like the evidence was misportrayed by the government.”

During the trial, Mr. Wade cross-examined Dr. Rosendorff for nearly four days, longer than the government questioned him. When reached by phone, Dr. Rosendorff declined to comment.

Judge Davila expressed some skepticism about the defense’s arguments, asking, “Is this a fishing expedition?”

The judge also pointed out that Ms. Holmes was acquitted of the counts against her that stemmed from Theranos’s treatment of patients—the counts for which testimony from Dr. Rosendorff, as the lab director who interacted with patients and doctors, was most relevant. Ms. Holmes was convicted of defrauding investors in Theranos by lying about the company’s financial condition, business prospects and technology.

Nevertheless, Dr. Rosendorff will be called back to court for what Judge Davila described as a limited hearing. “Really what I want to know is, did you tell the truth?” Judge Davila said he would seek to learn from Dr. Rosendorff.

Write to Heather Somerville at [email protected]

U.S. District Judge

Edward Davila

has set the hearing for Oct. 17, when her sentencing had originally been scheduled. Sentencing, if the judge doesn’t grant a new trial, would be delayed at least into November.

The post-trial hearing further prolongs the spectacle-laden criminal-fraud saga that began to play out in court with a jury trial over a year ago. Ms. Holmes was charged with 11 counts of wire fraud and conspiracy for running a yearslong scheme at Theranos, the defunct blood-testing startup she founded and ran as chief executive until 2018. In January, a jury convicted her on four counts of fraud for deceiving investors. Her one-time business and romantic partner, former Theranos President Ramesh “Sunny” Balwani, was convicted of 12 fraud counts in July. He is set to be sentenced in November.

Judge Davila last month denied Ms. Holmes’s motion for an acquittal. Around the same time, she filed three separate motions seeking a new trial. The judge hasn’t ruled on them, and the only motion to be discussed at the one-day hearing later this month centers on Dr. Rosendorff, who ran Theranos’s lab from 2013 to 2014 and testified across five days in Ms. Holmes’s trial.

According to a court filing from Ms. Holmes’s attorneys, Dr. Rosendorff showed up at her house unannounced on Aug. 8 and spoke to Ms. Holmes’s partner, Billy Evans. During that exchange, Dr. Rosendorff told Mr. Evans that the government had twisted his testimony, and that he “tried to answer the questions honestly” during the trial, but that the government made things sound worse than they were, according to the filing.

Dr. Rosendorff later filed a sworn declaration, which said, in part, “I answered every question put to me completely, accurately, and truthfully to the best of my ability.” He added: “I have no reason to believe that the government misrepresented or created a misimpression about Ms. Holmes’ or Mr. Balwani’s conduct at Theranos.”

During a virtual hearing on Monday,

Lance Wade,

an attorney for Ms. Holmes, said the “extraordinary set of circumstances” of a government witness showing up at a convicted felon’s house after trial warranted further exploration about whether the government twisted Dr. Rosendorff’s testimony.

“There was at least misleading information that came about, setting aside whether it was intentional or not,” said Mr. Wade. “He may feel upset because he feels like the evidence was misportrayed by the government.”

During the trial, Mr. Wade cross-examined Dr. Rosendorff for nearly four days, longer than the government questioned him. When reached by phone, Dr. Rosendorff declined to comment.

Judge Davila expressed some skepticism about the defense’s arguments, asking, “Is this a fishing expedition?”

The judge also pointed out that Ms. Holmes was acquitted of the counts against her that stemmed from Theranos’s treatment of patients—the counts for which testimony from Dr. Rosendorff, as the lab director who interacted with patients and doctors, was most relevant. Ms. Holmes was convicted of defrauding investors in Theranos by lying about the company’s financial condition, business prospects and technology.

Nevertheless, Dr. Rosendorff will be called back to court for what Judge Davila described as a limited hearing. “Really what I want to know is, did you tell the truth?” Judge Davila said he would seek to learn from Dr. Rosendorff.

Write to Heather Somerville at [email protected]