Theranos Founder Elizabeth Holmes Faces September Sentencing

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The district judge’s order means Ms. Holmes could remain free on bail for at least the next eight-and-a-half months.

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After jurors acquitted Ms. Holmes of four counts involving Theranos patients and failed to reach a unanimous verdict on three others related to defrauding investors, the government had the option of retrying the inconclusive counts.

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Prosecutors said in a filing jointly with Ms Holmes’ lawyers on Tuesday evening that they would move to dismiss the three hung cases.

The judge set the sentencing on September 26, largely in line with what prosecutors and Ms Holmes’ attorneys suggested. This means that Ms. Holmes will be out on bail for at least the next eight and a half months. As of Tuesday’s filing, her $500,000 bond should now be secured by assets.

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Judge Davila also set June 16 as a court date for addressing the motion. Ms Holmes’ defense team is expected to request a fresh trial or a reversal of her sentence in the coming months.

On each of the four counts, Ms Holmes was convicted of a maximum sentence of 20 years in prison. A review of prior cases indicates that there is likely to be less than 80 years of what could technically be encountered. Judge Davila, who oversaw the months-long proceedings, would be the final judge and, under federal sentencing guidelines, would have much leeway in sentencing.

The delay in sentencing gives the government time to complete another trial involving Theranos, that of Ramesh “Sunny” Balwani, Ms. Holmes’ top deputy and ex-boyfriend. He has pleaded not guilty to 12 counts of conspiracy and wire fraud.

Mr Balwani’s trial is set to begin in mid-March, as the latest wave of the coronavirus pandemic has delayed the February start date.

At a hearing held by teleconference last week, a lawyer for Mr Balwani insisted on further delay, saying his client had waited too long.

“We’ll be on trial soon,” Judge Davila assured her.

A separate Tuesday evening filing jointly by prosecutors and Mr Balwani’s legal team shows he has agreed to the new timeline. The filing sets a March 15 schedule for opening statements for Mr. Balwani’s case.

After Businesshala reported in June 2018, prosecutors accused Ms. Holmes and Mr. Balwani that Theranos’ finger-prick blood-testing technology did not work and that the company was secretly using commercial machines for most of its blood tests. Was getting it done.

Jurors heard in Ms. Holmes’ trial that Theranos began its services at the Walgreens Boots Alliance Inc.

Staff at pharmacies for patients to use told her that the blood tests were unreliable. Ms Holmes told investors that Theranos technology had been tested by major pharmaceutical companies and was being used by the US military, which was not as accurate as the evidence presented in the trial.

Write Sarah Randazzo at [email protected] and Heather Somerville at [email protected]

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