Theranos Holmes cant keep customer complaints out of trial – Reuters

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(Reuters) – Elizabeth Holmes has lost a bid to keep complaints from customers of her blood testing company Theranos Inc out of her upcoming fraud trial.

U.S. District Judge Edward Davila in San Jose, California on Wednesday rejected Holmes’ claim that prosecutors should not be allowed to use the complaints because they had failed to preserve a more comprehensive database of test results, finding that the prosecutors were not responsible for the loss of the database.

Lance Wade and Kevin Downey of Williams & Connolly, lawyers for Holmes, could not immediately be reached for comment.

Holmes, 37, is scheduled to face trial at the end of this month for allegedly defrauding Theranos investors and customers by falsely claiming that the company had developed technology to run a wide range of tests on a single drop of blood.

Her lawyers had sought to suppress “anecdotal” customer complaints about test results on the grounds that prosecutors failed to preserve Theranos’ so-called Laboratory Information System database, or LIS.

Prosecutors have previously faulted Theranos for handing over the database in encrypted form without a password. Theranos has since dismantled the server containing the database, rendering it permanently inaccessible.

Davila said Wednesday that it was Theranos’ actions, not the government’s, that led to the loss of the database. He also said the database’s value to Holmes’ case was “speculative.”

Before its collapse, Theranos was valued at $9 billion and made Holmes, a Stanford University dropout who founded the company in 2003 at age 19, a Silicon Valley star.

The case is United States v. Holmes, U.S. District Court, Northern District of California, No. 18-cr-00258.

For the government: Assistant U.S. Attorney Jeff Schenk

For Holmes: Lance Wade and Kevin Downey of Williams & Connolly

Read more:

Holmes’ communications with Boies firm fair game in trial -judge

Brendan Pierson reports on product liability litigation and on all areas of health care law. He can be reached at brendan.pierson@thomsonreuters.com.

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