A Federal judge in California has rejected Theranos founder Elizabeth Holmes’ request for a new trial.
Holmes’ lawyers filed for a new trial in September citing “newly discovered” evidence from the government’s statements made at the closing arguments of Balwani’s trial, as well as alleged government misconduct.
U.S. District Judge Edward Davila, who oversaw Ms. Holmes’s trial which began last year, said in a ruling late Monday that the arguments in her three motions for a new trial didn’t introduce material new evidence or establish government misconduct, adding that a new trial was unlikely to result in an acquittal.
In January, Holmes, 37, was found guilty of defrauding investors in the blood testing startup, convicting her on four of 11 counts. She was convicted of investor fraud and conspiracy, but acquitted on three counts of defrauding patients who paid for tests from Theranos, and a related conspiracy charge.
Ms. Holmes is scheduled for sentencing on Nov. 18. She faces up to 20 years in prison, plus fines, for each guilty count. Lawyers following the case have said she almost certainly won’t receive the maximum penalty, based on outcomes of other white-collar prosecutions.
Holmes rose to Silicon Valley fame after founding Theranos in 2003 at age 19 and became known for her penchant for wearing Steve Jobs-like black turtlenecks.
In July, former Theranos President Ramesh “Sunny” Balwani was also convicted of defrauding investors and patients about Theranos that was once valued at $9-billion.
Judge Davila also denied requests for an acquittal and new trial from Balwani.
Ms. Holmes made three requests for a new trial in September. The most significant of the requests came after an unusual encounter with former Theranos lab director Adam Rosendorff, who was also a key witness in the government’s case against her.
According to the filing, Dr. Rosendorff appeared distressed in two brief conversations with Ms. Holmes’s partner and said that the government had twisted his testimony and “made things seem worse than they were” at Theranos. He felt guilty about his role in her conviction “to the point where he had difficulty sleeping,” according to the filing.
The encounter prompted Judge Davila to hold a hearing last month, during which he asked Dr. Rosendorff whether his testimony at trial was truthful and whether the government had pressured him to lie.
Dr. Rosendorff said his testimony against his former boss was truthful, that she needs to pay her debt to society and that the government had encouraged him to tell the truth.
