Former Theranos CEO Elizabeth Holmes will attend the U.S. government fraud hearing against her on May 5, 2021.
The secret of the lack of Theranos patient test results, which allegedly showed a high margin of error, was the focus of former CEO Elizabeth Holmes’ hearing on Wednesday. Holmes, pregnant and expected to be born this month, appeared for the hearing via Zoom.
Prosecutors allege Theranos executives destroyed what is known as the Laboratory Information System (LIS) database and shared a useless copy with investigators after a 2018 grand jury issued a subpoena. The LIS contained years of accuracy and error rates from Theranos tests. According to the federal prosecutor’s office, the failure rate of the Theranos blood test system was 51.3%.
In a lawsuit, prosecutors argue that Holmes “probably benefited” from the loss of the LIS. “In fact, the information available strongly suggests that if the contents of the LIS were still there, it would dramatically substantiate the government’s allegations.”
US assistant attorney John Bostic said Wednesday, “Before Theranos took action to shut down the LIS, evidence on file shows Theranos staff knew that shutting down the database would likely be a permanent move. You have it tried anyway. “
But Holmes’ defense lawyers claim the government dropped the ball. “For a year and a half the government did nothing with that copy of the LIS database that was on a paralegal shelf, and if they had acted immediately as you would expect, your prosecutor would have found key evidence on the case the password, “said Amy Saharia, a Holmes defense attorney.
“There is a serious risk of disadvantage to Ms. Holmes when we have to go to a jury to try the facts about who lost the data,” she added. “The jury may speculate without proper basis about the intentions of the Theranos staff, or God forbid they conclude that Ms. Holmes had something to do with it when she didn’t.”
US District Judge Edward Davila questioned the defense attorneys ‘claim that the LIS system was critical to Holmes’ case and asked them, “Why didn’t you have a copy of it then?” He accepted her request to suppress evidence.
Last week, Holmes lost an offer to keep more than a dozen emails between her and Boies Schiller’s attorneys out of their upcoming trial. The selection of the jury in their criminal fraud proceedings is due to begin on August 31st.