A decide Monday agreed to delay sentencing former Theranos CEO Elizabeth Holmes so he can take into account whether or not federal prosecutors dedicated misconduct involving a star witness in her trial.
U.S. District Choose Edward Davila had scheduled Holmes’ sentencing for Oct. 17. In January, a jury discovered Holmes responsible on 4 of 11 counts of defrauding traders within the former well being care tech firm, with every depend carrying a most sentence of 20 years in jail.
However over the summer time, former Theranos lab director Adam Rosendorff allegedly appeared at Holmes’ house to specific remorse over his testimony, saying the federal government tried to make everybody “look unhealthy.”
That led Holmes’ attorneys to request a brand new trial final month.
Prosecutors subsequently filed a sworn assertion from Rosendorff standing by his testimony.
Nonetheless, Davila agreed Monday to carry a brand new listening to on Oct. 17 to query Rosendorff, calling the accusations in opposition to federal prosecutors “restricted however severe.”
“The allegation is the chance that the federal government could have engaged in misconduct,” Davila mentioned. “The court docket takes that critically.”
Ought to Davila conform to uphold the decision, Holmes new sentencing listening to might come as late as January, he mentioned Monday.
In July, Sunny Balwani, the previous president and chief working officer of Theranos and Holmes’ former romantic associate, was discovered responsible of all 12 counts of fraud prices introduced by the federal government. He’s set to be sentenced on Nov. 15.
The Theranos case has drawn worldwide headlines for instance of Silicon Valley’s excesses and its willingness to advertise corporations within the absence of tangible outcomes. Whilst Theranos’ worth soared to as a lot as $9 billion, subsequent findings confirmed its blood pin-prick expertise was by no means viable.
Scott Cohn, CNBC contributed.