Cooley wants to end Theranos defense, citing pay dispute

Lawyers from Cooley LLP representing disgraced Theranos founder Elizabeth Holmes filed a motion to withdraw as her attorneys, citing pay disputes.

"Ms. Holmes has not paid Cooley for any of its work as her counsel of record in this action for more than a year," Cooley attorneys said in the motion filed Sept. 30. "Further, given Ms. Holmes's current financial situation, Cooley has no expectation that Ms. Holmes will ever pay it for its services as her counsel. Thus, it is unfair and unreasonable to require Cooley to continue representing Ms. Holmes in this action."

Palo Alto-based Cooley chairman Stephen C. Neal and partner in charge John C. Dwyer, as well as Seattle-based associate Jeff Lombard, have been representing Holmes in a Phoenix court case alleging massive fraud over her company, Theranos. Holmes claimed the biotech company created a revolutionary new blood test that required only the prick of a finger for what used to necessitate more blood.

The U.S. Securities and Exchange Commission charged Holmes and Theranos with fraud, which was later settled. A subsequent class-action suit filed in 2016 accused Holmes, Theranos and then-partner Walgreens, which hosted in-store blood collection centers, for blood tests "that were not provided as advertised and were not accurate, possibly exposing them to unnecessary medical treatment or denying them the opportunity to seek timely medical treatment," according to the lawsuit. Toy v. Theranos, 2:16-cv-02138-GMS (Ariz., filed June 29, 2016).

District Judge H. Russel Holland, who is presiding over the case, had not filed a decision to grant or deny the motion as of press time Monday.

-- Nicole Tyau