Settlement Of Federal Walgreens / Theranos Class Litigation Will Need More Time: Hard To Communicate With Balwani And Holmes.

The various lawyers for the consumers and patients injured by false Theranos readings, to be paid by Walgreens, as the retail outlet in Arizona for such errant readings, while already settled in principle, is going to need extra time to document (as signatures from Holmes and Balwani are also required, since shortfalls will be their joint and several responsibility).

This is all according to an order on stipulations entered last week by the able USDC Judge David Campbell, in Phoenix. But it is grinding slowly to an end point, just the same.

Here’s the four page order (PDF) — and a snippet from it:

…Plaintiffs have continued to put significant efforts into resolving their claims against the other Defendants, and have been in communications with counsel for Mr. Balwani and with Ms. Holmes (who is not represented by counsel) via email through the mediator. Due to Mr. Balwani’s and Ms. Holmes’ incarceration, communication with these two defendants has been slower than normal.

To allow additional time for Plaintiffs and Walgreens to finalize the documentation of their settlement, and for Plaintiffs to continue their efforts regarding Ms. Holmes and Mr. Balwani, the results of which will likely affect the content of class notices and/or other proceedings regarding settlement approval, Plaintiffs and Walgreens respectfully request a second 14-day extension to the existing July 7, 2023 deadline for the submission of preliminary settlement approval papers.

Plaintiffs and Walgreens therefore stipulate, subject to the Court’s approval, to extend the deadline for filing the motion for preliminary approval of the settlement by 14 days, i.e., to July 21, 2023.

Plaintiffs and Walgreens also want to advise to the Court that it is possible they may need further time extensions from the Court, depending on how things proceed with Ms. Holmes and Mr. Balwani and how difficult communications with those two defendants prove….

As we saw in Shkreli’s federal civil monopoly trials while he was locked up, the receipt of even legal mail is dodgy in the BoP matrix.

This is a second extension, and it is noteworthy that more will likely be needed.

But there is really no choice, for Holmes and Balwani: they will face a decade or so of litigating a federal case in Arizona, from prison cells (without funds for defense counsel), if they decide they won’t sign — that is, won’t let Walgreens pay (and they would only be obliged personally to pay, if Walgreens goes belly-up, before it finishes paying).

In the end, a settlement may go forward without them, if need be — but I think they will sign (once they understand they have nothing but bad options here).

Now you know — onward.

Minor Housekeeping Note: All Of Holmes’ Claims Of Error Are Now Consolidated In One Ninth Cir. Appeal…

Perhaps a point only academicians might love, but they will now all appear in one brief, and one argument session.

Mr. Balwani’s appeal will remain separate, since questions of which of the two of them might have been limited — in blaming the other — cannot easily be teased out, if they all appear in one appeal.

Now you know. The order was entered today in the Ninth Corcuit.

Out, grinning….