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Judge agrees to delay Elizabeth Holmes’ sentencing over prosecutor misconduct concerns

A star witness visited the former Theranos executive over the summer saying the government had tried to make everyone "look bad."
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A judge Monday agreed to delay sentencing former Theranos CEO Elizabeth Holmes so he can consider whether federal prosecutors committed misconduct involving a star witness in her trial.

U.S. District Judge Edward Davila had scheduled Holmes' sentencing for Oct. 17. In January, a jury found Holmes guilty on four of 11 counts of defrauding investors in the former health care tech company, with each count carrying a maximum sentence of 20 years in prison.

But over the summer, former Theranos lab director Adam Rosendorff allegedly appeared at Holmes’ home to express regret over his testimony, saying the government tried to make everyone “look bad.”

That led Holmes' attorneys to request a new trial last month.

Prosecutors subsequently filed a sworn statement from Rosendorff standing by his testimony.

Nonetheless, Davila agreed Monday to hold a new hearing on Oct. 17 to question Rosendorff, calling the accusations against federal prosecutors "limited but serious."

"The allegation is the possibility that the government may have engaged in misconduct," Davila said. "The court takes that seriously.”

Should Davila agree to uphold the verdict, Holmes new sentencing hearing could come as late as January, he said Monday.

In July, Sunny Balwani, the former president and chief operating officer of Theranos and Holmes' former romantic partner, was found guilty of all 12 counts of fraud charges brought by the government. He is set to be sentenced on Nov. 15.

The Theranos case has drawn international headlines as an example of Silicon Valley’s excesses and its willingness to promote companies in the absence of tangible results. Even as Theranos' value soared to as much as $9 billion, subsequent findings showed its blood pin-prick technology was never viable.