Lance Wade did not say that snitches need stitches, but his behavior today in courtroom was so impressive it wasn't necessary. This is the most aggressive performance that we have seen from Elizabeth Holmes defense lawyer, probably because of the recent testimony that is so bad for Holmes case.
Today's witness was Adam Rosendorff (ex-Lab Director at Theranos), who was responsible in part for the laboratory where patient results were processed. Wade made it clear in his opening statement that he was ready to blame Theranos lab director Rosendorff and other Theranos lab managers for many of the company's problems. Two successful objections were raised by the government after Wade's questioning Rosendorff.
Was Rosendorff coached by the government to answer his questions?
The defense had used a more gentle approach up until now. Holmes lawyers did not attempt to destroy Erika Cheung's credibility when she was confronted by whistleblower Erika. Wade was kind, solicitous and even kind to Erika Cheung and helped her introduce documents and testimony that would support his client's case. Wade presented evidence with Surekha Gangakhedkar who was in R&D, and who helped to develop many of the company's tests. He also included evidence that Holmes was a thoughtful boss who tried to convince Gangakhedkar to quit.
Wade looked trapped right from the start of his cross-examination today. Rosendorff's earlier testimony had included emails that appeared to be a disaster for Holmes, who is being tried for wire fraud and conspiracy. They showed Rosendorff becoming increasingly frustrated with the tests and management. Holmes brother Christian was also present, which was inserted between Rosendorff's and complaining doctors. Wade attacked Rosendorff's credibility, perhaps because of this.
Wade listed the names of several federal agents from the FBI, Postal Service and FDA with whom Rosendorff was in a meeting. He seemed shocked that Rosendorff couldn't recall their names. Rosendorff said that some of the agents had not even spoken with him in certain cases. Was Rosendorff coached by the government about his answers? Wade demanded almost shouting.
Wade was able to score some points. He got Rosendorff, for example, to admit that Holmes never instructed him to report inaccurate results. He also showed Rosendorff that he had answered a question about why Rosendorff left Theranos slightly different while under oath, two years prior.
Wade got Rosendorff to tell Wade that the patient launch, which he had heard about last week, was the one Rosendorff wanted delayed. This was only for close friends and family. I'm not convinced that Wade was helped by soft launch testimony. Friends and family would be more understanding if Wade needed additional time to do things the right way.
Wade held Walter Isaacsons biography about Jobs while he answered questions
After a short break, the tone changed. (Lawyers sometimes read reporters live-tweets about their trials, and our stories. Lance! Wade started to portray Holmes, a marketing genius like Steve Jobs. He was noticeably friendlier and quieter than Rosendorff.
As he asked questions, Wade held Walter Isaacsons biography about Jobs up, which Rosendorff stated he had read. Apples marketing focus was a key part of its success. (Chiat Day later worked with Theranos to create Apples Think Different.) Apple was also crazy-focused upon secrecy. Judge Edward Davila interrupts this line of questioning in order to tell Wade that this isn't the right time for a book review. Wade, however, had already hit the highlights.
However, there was a problem with the Steve Jobs metaphor: Elizabeth Holmes brother Christian.
Holmes wrote to Holmes, "You handled this well."
One email chain showed Christian, a non-scientific or medical background, attempting to take over Rosendorff's lab director role. A customer service representative asked Christian, and not Rosendorff, if he would approve another draw for a failed test.
A doctor said that the results of a cholesterol test were not correct in an email chain. Christian Rosendorff wrote that something was not right with the test. Christian responded by giving Rosendorff a paragraph explaining the problem to the doctor. Rosendorff refused it and said he would not defend the test. Christian was furious and sent his sister an email titled "attaboy!" Holmes wrote to Holmes, expressing her admiration for your handling of this situation.
Rosendorff felt like he was in a bind because of this meddling. Christian wrote that he is committed to honesty and transparency with the patient. Christian sent this to Holmes and Sunny Balwani who are being tried separately. My first duty isn't to Theranos. Rosendorff was able to save the patient from another Theranos fingerprick, and instead used an FDA-approved venous drawing test.
Rosendorff also stated in another email that he felt disconnected from the company's activities. Rosendorff asked to be removed from the laboratory license. Holmes wrote that he felt pressured to endorse results he could not be sure of.
She replied, "How sad and disappointing" Rosendorff testified Friday that he had met with Holmes to discuss his concerns.
Do you feel comfortable doing this?
There were many bad tests, but it was not enough to keep quiet. Theranos' secretiveness was so great that they even fooled public health officials by giving Holmes blessing. Holmes, Balwani and Rosendorff emailed each other to find out where they were walking when auditors from California Department of Public Health visited the lab. Rosendorff stated that no one was allowed to enter or leave Normandy, where the Edison machines were kept on the day of inspection. Rosendorff testified that the auditors did not see any Edison devices on that day.
According to law, proficiency testing is required by laboratories to ensure that accurate results are obtained. Rosendorff said he felt that management was only lip-service to the issue. Rosendorff testified that he was not provided with any resources or support to help him prepare for proficiency testing. He also said that nothing had changed since he left. Rosendorff sent an email to his Gmail account about this, in case he needed it later.
He eventually found another job, and he gave notice. He stayed on for a while to help find another lab director. In November 2014, another poor test result occurred. Rosendorff bluntly stated to Holmes and Balwani, that the accuracy of the tests was questionable. He sent an email asking for his consent.
Balwani basically dismissed Rosendorff's concerns in his response. Rosendorff sent that reply to Holmes and wrote, "I find Sunny's response offensively disingenuous." He should have apologized. Holmes sent that email to Balwani and said that they should cut Sunny's Monday. Rosendorff understood this to mean they should fire Sunny rather than allow him to serve his final days.
Rosendorff spoke to the feds, and he knew what questions he would be asked. Rosendorff testified that the launch was soft. However, it doesn't address patient complaints or Rosendorffs increasing bluntness in addressing bad tests. This doesn't explain Christian Holmes' involvement or the reason his sister praised him for taking down Rosendorff (her lab director).
Tomorrow will see Rosendorff's cross-examination. However, so far not much has been presented to him to weaken him. The emails that have been sent bolster him. These emails raise many questions about Elizabeth Holmes' credibility and it will be difficult to answer.
