Holmes, Balwani Lose Bid to Block U.S. From Theranos Documents

(Bloomberg) -- Former Theranos Inc. Chief Executive Officer Elizabeth Holmes and former President Ramesh “Sunny” Balwani lost their request to block prosecutors from combing through more than 200,000 company documents.

Key Insights:

• The government will now have access to the information and get to use it in the criminal fraud case as well as at trial, if the case gets to that point
• Jeffrey B. Coopersmith, the lawyer for the co-defendants, said the U.S. was abusing its grand jury investigative powers by making demands for information after defendants were charged
• Prosecutor John C. Bostic said the indictment was “an event in the ongoing investigation” and “doesn’t capture all the criminal conduct” it uncovered

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editors responsible for this story: Elizabeth Wollman at ewollman@bloomberg.net, Steve Stroth

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