Defense Blames Theranos Lab Director In Former CEO Elizabeth Holmes' Fraud Trial

SAN JOSE (KPIX 5) -- Former Theranos CEO Elizabeth Holmes is on trial for conspiracy and fraud, but the defense finished up cross examination by trying to turn the tables and blame the company's problems on the lab director.

In a tense exchange in front of the jury, defense lawyer Lance Wade read aloud from a previous deposition by former Theranos lab director Dr. Adam Rosendorff.

Rosendorff had stated Theranos "did not" have a higher number of faulty test results than other labs he worked at including the University of Pittsburg lab.

"That's 180 degrees from what you said in your direct testimony" in this trial, Wade said.

"Yes, it seems to be different," Rosendorff admitted but added the other lab had a much higher volume of tests than Theranos.

"They're trying to point the finger at Dr. Rosendorff, saying he's the actual fraud," said former prosecutor and legal analyst Michele Hagan.

Hagan said Rosendorf is the prosecution's key witness, who's now scoring points for the defense.

"This witness cuts both ways for the prosecution and the defense. But keep in mind, he's not the only witness. We've had prior witnesses come forward who all testified that the tests were inaccurate," Hagan said.

In a ruling favoring Holmes, the judge agreed to let the defense point out that Dr. Rosendorff could have his license suspended by regulators after there were problems with his current lab in Southern California.

On redirect, the prosecutor refocused on Holmes with Rosendorff testifying she wanted to rapidly expand the use of the Theranos analyzers, even though she knew they were inaccurate and had frequent breakdowns.