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Federal Criminal Trialtrial-daytrial-dayJohn C. BosticRobert S. LeachLance A. WadeSteven BurdAdam RosendorffredirectrecrossdirectDay 16 - October 6, 2021The court replaced a juror whose religious concerns affected her ability to vote, then retained the replacement after addressing her language concerns. Rosendorff completed testimony about test performance, laboratory authority, and HCG quality-control emails. Former Safeway CEO Steven Burd described Holmes's representations, Safeway's reliance, and repeated deployment delays.
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Day 16 - October 6, 2021

Juror Replaced, Rosendorff Concludes, and Safeway's Former CEO Testifies

Judge Edward J. Davila
4Proceedings
5Pages
2Witnesses
2,417Lines
Day 16 of 51
Appearing:

The court replaced a juror whose religious concerns affected her ability to vote, then retained the replacement after addressing her language concerns. Rosendorff completed testimony about test performance, laboratory authority, and HCG quality-control emails. Former Safeway CEO Steven Burd described Holmes's representations, Safeway's reliance, and repeated deployment delays.

Full day summary

Before testimony resumed, the court considered but did not decide whether Steven Burd could give the exact amount Safeway spent on renovations. The court then excused Juror No. 4 after she explained that her Buddhist convictions and concern about punishment interfered with her ability to vote. Her replacement expressed concern about English not being her first language, but said the court's explanation reassured her and remained seated with both sides' agreement. Adam Rosendorff testified on redirect that quality controls failed more often on Theranos-developed methods than on unmodified instruments, that low initial testing volume did not resolve his patient-accuracy concerns, and that management controlled operational decisions he could not always implement or overrule. He also said inspection-related emails troubled him, although the inspector was shown everything she requested. The court later struck his comparison between Theranos and other laboratories rather than permit broader inquiry into collateral matters. On recross, Rosendorff accepted the laboratory director's ultimate regulatory responsibilities while disputing that he personally executed every required procedure. He agreed that Holmes never directed or overruled him on laboratory matters and corrected earlier testimony by acknowledging emails showing HCG quality-control work on Edison devices, while emphasizing that one email reported failures on nine instruments. Former Safeway CEO Steven Burd testified that Holmes represented Theranos as offering rapid, accurate testing through a small device capable of replacing much of a conventional laboratory. He said those representations were essential to Safeway's agreement and investments and that he relied on them as true. Burd described a board demonstration that produced no result, repeated missed deployment deadlines, and his expectation that Theranos's own mini-lab technology, rather than only conventional equipment, would be used and validated.

1. Safeway Renovation-Expense Evidence Hearing and Juror No. 4 Inquiry

Counsel first disputed evidence of Safeway's renovation expenses, with no ruling recorded before the court addressed juror concerns. The court excused Juror No. 4 over religious and punishment concerns, seated Alternate Juror No. 2, and retained the replacement after addressing her concerns about English proficiency and possible error.

Procedural
Safeway Renovation-Expense Evidence Hearing

Defense counsel sought to exclude proposed testimony about Safeway's store-renovation spending, while prosecutors argued that the spending showed materiality; the court explored omitting the exact figure but did not rule in this excerpt. The court also prepared to question a juror concerned about continued service and confirmed that Alternate Juror 3 could remain.

Procedural
Juror No. 4 Religious-Convictions and Service Inquiry

Juror No. 4 said her Buddhist beliefs and concern about punishment made it difficult for her to participate in a verdict. The court excused her, without defense objection, and directed Alternate Juror 2 to replace her.

Procedural
Replacement Juror No. 4 Language and Service Inquiry

Replacement Juror No. 4 raised concerns about English-language comprehension and punishment. After the court confirmed her understanding and explained the jury's limited role, both sides agreed that she should continue serving.

Highlights

2. Adam Rosendorff — Redirect (Recall, Continued)

Adam Rosendorff resumed redirect testimony about Theranos test failures, proficiency testing, laboratory inspections, and limits on his authority as laboratory director.

Redirect
Adam RosendorffJohn C. Bostic
764 lines

Adam Rosendorff testified that Theranos-specific and fingerstick testing presented recurring reliability problems, clarified the limits of the company's proficiency testing, and described a gap between his regulatory responsibility and management's practical control of laboratory operations.

Highlights

Adam Rosendorff — Redirecttestimony highlightRosendorff used the quality-systems presentation and his experience to distinguish Theranos-developed methods from unmodified instruments, testifying that quality controls failed much more frequently on Theranos devices. He also described greater HDL and ISE variability with the fingerstick samples Theranos used and said troubleshooting based on venous samples did not resolve his concerns about patient results.Adam Rosendorff — Redirect“BUT IN MY MIND, EVEN TESTING ONE PATIENT WITH A HIGH PROBABILITY OF INACCURACY WAS HIGHLY PROBLEMATIC FOR ME.”— Adam RosendorffThe statement explains why Rosendorff said low initial testing volume did not alleviate his patient-accuracy concerns.Adam Rosendorff — Redirectevidence eventTwo inspection-day emails were admitted. One said not to remind the inspector about the downstairs laboratory unless she asked; another provided a response if the inspector asked about a divided area containing Edisons. Rosendorff said the email troubled him, while also testifying that the regulator was shown everything she requested and that the audit was handled appropriately.Adam Rosendorff — Redirecttestimony highlightRosendorff distinguished regulatory responsibility from actual authority and testified that Holmes, Balwani, and Young made operational decisions he could not overrule. Exhibit 5417 supported questioning about Balwani's statement that he was running the CLIA laboratory, and Rosendorff said management did not always defer to him despite his laboratory-director responsibilities.

3. Laboratory-Comparison Testimony Evidence Hearing

Judge Davila struck Dr. Adam Rosendorff's laboratory-comparison testimony and instructed jurors to disregard the question and answer entirely.

Procedural
Laboratory-Comparison Testimony Evidence Hearing
100 lines

The court struck Dr. Adam Rosendorff's comparison of Theranos with other laboratories and ordered the jury to disregard the question and answer. It rejected the defense's request to explore specific problems at his former laboratories, citing Rule 403 and the danger of collateral mini-trials.

Jury Instruction
Curative Instruction Striking Laboratory-Comparison Testimony

Judge Davila struck Dr. Adam Rosendorff's laboratory-comparison question and answer and directed jurors not to consider either during deliberations.

Highlights

5. Steven Burd — Direct

Former Safeway CEO Steven Burd described the company's reliance on Elizabeth Holmes's representations about Theranos technology, its payments and investments, and repeated delays in deploying devices.

Direct
Steven BurdRobert S. Leach
675 lines

Former Safeway CEO Steven Burd testified that Holmes's representations about a fast, comprehensive mini-lab drove a strategic retail agreement, substantial payments, and convertible-note purchases. He also described a failed board demonstration, repeated rollout delays, and Safeway's unmet expectation that Theranos's own technology was operating and validated.

Highlights

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