Former Theranos CEO Elizabeth Holmes is seeking a new trial as one of the key witnesses in her federal fraud trial expressed regret for their testimony.
Holmes filed a motion on September 6 requesting a new trial after former Theranos lab director Adam Rosendorff went to her house to make amends about his testimony against her in her federal fraud trial, Business Insider reports.
After more than 50 hours and seven days of deliberations in January following Holmes’ federal fraud trial, a jury found her guilty on four counts of wire fraud and conspiracy to commit wire fraud related to allegations that she intentionally lied to investors about Theranos’ blood testing technology.
Rosendorff testified in October last year and was a witness for the prosecution. During the trial, he said he was under a lot of pressure from Theranos to show that the blood-testing technology worked and was successful. He also alleged that Holmes wanted to expand the use of Theranos’ Edison devices from the time of its launch in Walgreens stores.
Holmes’ attorney Lance Wade received a voicemail from Rosendorff on August 8 asking if he could see Holmes as it would be “quite healing” for both him and Holmes, Business Insider reports. Rosendorff also went to Holmes’ house to speak with her.
According to a motion filed in court, Holmes’ partner Billy Evans documented the visit with Rosendorff and explained that the former lab director said he “feels guilty” and that “when he was called as a witness he tried to answer the questions honestly but that the prosecutors tried to make everybody look bad (in the company).” Rosendorff also allegedly said that the results of his time on the stand were “weighing on him.”
“He said Theranos was early in his and her career, that he had just finished residency, and that everyone was working so hard to do something good and meaningful. He said that everyone was just doing the best they could,” Evans said, per Business Insider.
Holmes’ team is requesting a new trial or additional evidentiary hearing where Rosendorff could testify his concerns to the court.
Holmes and her team recently requested to overturn her conviction because of “insufficient evidence,” which is a common last-ditch effort for white-collar convictions. U.S. District Judge Edward Davila formally rejected the request and cited Rosendorff’s testimony in support of his ruling, NPR reports. Holmes’ sentencing hearing is scheduled for October 17.
Holmes and Theranos were once believed to be the next shining stars of Silicon Valley. Holmes claimed her company would revolutionize blood testing with technology that could analyze tiny amounts of blood and inked retail partnerships with Walgreens and Safeway. Forbes in 2015 recognized Holmes as America’s richest self-made woman based on Theranos’ multibillion-dollar valuation at the time.
Investigative reporting soon dismantled Holmes’ technological claims, questioning whether she and others misled investors. The downward spiral culminated in the 2018 shutdown of the company, with the U.S. Securities and Exchange Commission accusing Holmes and Balwani of a “massive fraud.”
Holmes, along with former COO Sunny Balwani, faced 10 counts of wire fraud and two counts of conspiracy to commit wire fraud over allegations that she knowingly misled investors by claiming Theranos technology could revolutionize blood testing. While Holmes was found guilty on four counts, Balwani was found guilty in July on all 12 charges.