The trial was initially scheduled for July, but in April had been postponed until October due to the pandemic. A final decision will be made in August.
JStone/Shutterstock
The criminal fraud trial of Theranos founder Elizabeth Holmes could be delayed until 2021 due to continuing concerns regarding the spread of COVID-19. The trial was initially scheduled for July, but in April had been postponed until October due to the pandemic. A final decision will be made in August.
As CNBC reported Monday, U.S. District Judge Edward Davila speculated about the delay of the trial as he noted the courts are “guided by the cloud of COVID.” When he initially delayed the trial to October, Davila said he would extend it if COVID-19 continued to rage across the state. In California, there have been more than 400,000 confirmed cases of COVID-19 and Gov. Gavin Newsom initiated new lockdowns on businesses following a mid-summer surge of new cases.
Davila’s position regarding the novel coronavirus was echoed by the attorneys for Holmes. During a Zoom conference call, Lance Wade, a Holmes’ attorney, argued that it’s not safe to begin a trial at this time.
“Proceeding in the midst of a pandemic comes with great risks,” Wade said, according to CNBC. “We think a trial anytime soon is just not realistic, it’s just not safe. If we’re forced to do it we will do it, but it endangers people and we prefer not to.”
Prosecuting attorneys, though, argued they were ready to begin a trial in October. During the call, attorneys for the state said it was important for an expeditious trial given the amounts of money involved in the Holmes’ fraud case.
“The fraud here is in the hundreds of millions of dollars,” U.S. Attorney Robert Leach said.
Holmes and former Theranos President Ramesh “Sunny” Balwani are facing multiple counts of fraud related to the blood-testing company. From 2013 to 2015 Holmes and Balwani raised more than $700 million from investors through what the U.S. Securities and Exchange Commission called “years-long fraud” in which they exaggerated or lied about the efficacy of the company’s proprietary technology and the state of its finances, according to the complaint. The company also made false claims about its relationship with the Department of Defense and its regulatory status with the U.S. Food and Drug Administration during that time period, the complaint, announced in 2018, said.
Some of the concern for the trial revolves around the witness list. CNBC noted that the prosecution team identified 170 people who live in 15 different states, several of which are seeing surges in COVID-19 cases. Sixteen of the witnesses are over the age of 65, including some high-profile individuals. The prosecution list includes two members of the company’s defunct board of directors, former U.S. Secretary of Defense James Mattis and former U.S. Secretary of State Henry Kissinger. Rupert Murdoch, who was an investor in Theranos, was also included on the list.
In its report, CNBC noted that Davila was hesitant to extend the trial date too far out. Too many delays obscure an eventual finishing point, he said.
In February Davila dropped some of the fraud charges against Holmes and Balwani. In May, prosecutors added additional charges against the duo, but those were dropped this month, CNBC reported.
