Ramesh “Sunny” Balwani, the jilted lover and business partner of former Theranos CEO Elizabeth Holmes, finally has his chance to defend himself against charges that he was Holmes’ accomplice in a Silicon Valley scam involving a ballyhooed blood-testing technology that flopped.
“It leaves the door open” for Holmes to strike a deal, said Ann Kim, a Los Angeles lawyer who formerly handled fraud cases for the U.S. Attorney’s Office and Securities and Exchange Commission. The abuse allegations, which Balwani’s attorney has vehemently denied, were one reason that U.S. District Judge Edward Davila ruled the Holmes and Balwani should have separate trials even though they faced the same criminal charges.
Balwani didn’t initially play a direct role in Theranos, although Holmes testified that he tried to sculpt Holmes into a more savvy entrepreneur while dictating her diet, daily schedule and friendships. Balwani joined Theranos in 2009 as the company’s chief operating officer, a position he held until Holmes ousted him in 2016 amid revelations of rampant inaccuracies with Theranos’ blood tests.
While Holmes got the glory, Balwani seemed to envision himself as a mastermind. based on evidence presented at the trial. “I have moulded you,” Balwani told Holmes in a May 2015 text that became part of the evidence in her trial.
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