High-Profile Criminal Trial For Former Theranos CEO Elizabeth Holmes Set For Next Summer
Elizabeth Holmes and her former No. 2 Sunny Balwani are accused of defrauding investors, patients, and doctors in a blood-testing scandal that brought down health care’s richest venture-backed startup and have become an industry parable for the dangers of medical hype and hubris. Jury selection is scheduled to begin in July 2020 and the trial is expected to last about three months.
The Associated Press:
Theranos CEO Elizabeth Holmes To Go On Trial Next July
Elizabeth Holmes will go on trial next summer to face criminal fraud charges for allegedly defrauding investors, doctors and the public as the head of the once-heralded blood-testing startup Theranos. U.S. District Court Judge Edward Davila ruled Friday that the trial against Holmes and the company's former Chief Operating Officer Ramesh Balwani will start July 28, 2020. (6/29)
The Wall Street Journal:
Theranos Founder Elizabeth Holmes To Face Trial Next Year On Fraud Charges
Jury selection will start the week of July 28, 2020. The trial is scheduled to start Aug. 4 and will last about three months, he said. “Restrain your enthusiasm, please,” Judge Davila said to the defense lawyers, who had lobbied for a later start date, citing the amount of documents they had to review and the challenges of gathering witnesses. (Summerville, 6/28)
ABC News:
Theranos Founder Elizabeth Holmes Set To Go To Trial Next Summer
Holmes and Balwani, who prosecutors say were romantically involved while running Theranos, were each charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud in a federal indictment handed up last July. Holmes claimed the Theranos technology required a few drops of blood to test for numerous diseases and at a fraction of the cost of existing lab tests. The charges are a result of allegations that Holmes engaged in a multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients, according to the indictment. (Youn, Pong, Dunn and Thompson, 6/29)
Stat:
Ex-Theranos CEO Elizabeth Holmes Gets A Trial Date: Summer 2020
The court date next year marks something of a compromise between the two sides. Prosecutors had indicated a preference for a trial in the first half of next year, while attorneys for Holmes and Balwani had said they needed more time to prepare for a complex case involving countless pages of documentation. Speculation has abounded over what kind of defense Holmes and Balwani might mount. They could blame each other — and the intrigue would be heightened by the fact that they were previously in a romantic relationship, at a time when they ran the now defunct company together and made the decisions for which they’re now facing criminal charges. (Robbins, 6/28)
In other health care industry news —
Reuters:
Encompass Health To Pay $48 Million To Resolve False Claims Act Allegations-U.S. DOJ
Encompass Health Corp has agreed to pay $48 million to resolve allegations that it violated the False Claims Act, the U.S. Justice Department said on Friday. The settlement resolves allegations in three lawsuits that some of Encompass Health's inpatient rehabilitation facilities provided inaccurate information to the federal Medicare programme to maintain their status as an IRF and earn a higher rate of reimbursement, and that some admissions were not medically necessary, the department said. (6/28)
Stat:
Livongo, Diabetes-Coaching Startup, Files IPO In A Test For Health Tech
Livongo, a startup that monitors and coaches patients with chronic diseases, on Friday filed papers to launch its initial public offering, in what is seen as a litmus test for health-tech companies seeking to translate early growth into value in the public markets. The offering is expected to be among the first for a new generation of slick and savvy venture-backed companies in the U.S. digital health sector, which hasn’t produced an IPO since 2016. (Another such company, medical records data startup Health Catalyst, filed to go public on Thursday.) Livongo’s offering had been anticipated for several months, as the company has been expanding rapidly and running studies to try to show that its services can improve patients’ outcomes and save their employers money. (Ross and Robbins, 6/28)
Modern Healthcare:
Dr. Steven Safyer Retiring As Montefiore's CEO
The CEO who pioneered population health management at Montefiore Medical Center in New York City is retiring after 11 years at the helm of the academic giant. Dr. Steven Safyer, who made Modern Healthcare's Most Influential People in Healthcare list four times, announced Friday that he's retiring. He said he will continue to serve as CEO until a successor is appointed. Dan Tishman, chair of the Montefiore Medicine board of trustees, will head the selection process. (6/28)
Modern Healthcare:
UnitedHealthcare Names Optum Exec McMahon As CEO
UnitedHealth Group is switching up the roles of its top executives. The Minnetonka, Minn.-based insurer on Friday said that Dirk McMahon, the current president and chief operating officer of fast-growing business unit Optum, will become CEO of UnitedHealthcare, the company's insurance arm. Steve Nelson, who was named UnitedHealthcare CEO just two years ago, is retiring immediately. He has been with the company for 15 years. (Livingston, 6/28)
