Did San Jose, Caliph or Elizabeth Holmes, the former CEO of a blood test company, mislead those companies into getting the money?
That debate was at the center of evidence in the sixth week of Ms Holmes’ fraud trial in San Jose. He has been charged with 12 counts and conspiracy to commit fraud. Ramesh Palwani, his partner in business and romance, has also been charged and will be tried separately next year. Both pleaded not guilty.
Here are excerpts from this week’s activities:
‘Discouraged’ retail partners
Steve Burt, former chief executive of Safeway, testified that Ms Holmes led him to believe that he could conduct hundreds of blood tests quickly, accurately and cheaply with just a drop of blood. Mr. Burt said he was fascinated by the potential new business plan and that Safeway had formed a partnership to place Theronos machines in its grocery stores and spent $ 275 million to renovate the stores to accommodate the test centers.
But in emails, Mr. Burt was more frustrated with Mrs. Holmes and Theronos.
“I want to help, but you make it harder,” he wrote in one. In another, after noting that he recalled being encouraged once in the last 62 years, he added: “That, I’m approaching my second event.” The other person’s meaning is simply, “not encouraging”. The partnership broke down after a series of delays by Theronos, Mr. Burt testified.
Wade Miquelon and Nimesh Zaveri, two former Walkreens executives, gave a similar story. As part of a partnership agreement, Walkreens agreed to pay Ms Holmes $ 100 million in “innovation fees” and invest $ 40 million in equities.
Walkreins stopped offering Theronos tests in 2016, and the two-year test results were eventually canceled.
At the beginning of the investigation, the prosecution introduced one of the pre-existing criminal documents.
In the initial reports, Robert Leach, an American lawyer who assisted the lawyer, produced the Theranos 55-page report, which mainly featured the icons of pharmaceutical manufacturers such as the Glososmithkline, Pfizer and Shering-Blow, which seemed to confirm Theronos’ technology. Theranos used the statement to solicit investments.
One problem: The pharmaceutical companies do not write, approve, or acknowledge the results contained in the report. Leach said. One page misspelled the word “company”.
Mr. Mikulan said Walkreens had reviewed the document as part of its diligence on Theranos and hoped that pharmaceutical companies would recognize its technology.
“My guess is that both sides agreed to what was written,” Mr Michael said of the statement.
Director of a Figurine Laboratory
The jurors recently asked Adam Rosentorf, a former Theronos laboratory director, for six days to testify about his work on the high-tech components of blood testing. The job requires a long time, complex knowledge of the science behind the tests and frequent contact with administrators, doctors and patients, he said. Dr. Rosentharf left Theronos’ laboratory procedures and sent bad information to The Wall Street Journal.
A dermatologist was appointed to replace him.
Dr. Sunil Dhawan met the legal requirements to be a laboratory director but had no expertise in pathology or laboratory science and was appointed to the role by Mr. Balwani who had been his patient for almost 15 years.
Dr. Dhawan testified this week that between the summer of November 2014 and 2015, he spent a total of five to 10 hours working for Theranos and visited its Silicon Valley office twice. He said he never contacted patients, doctors or Theronos laboratory staff.
Lance Wade, Ms Holmes ‘lawyer, argued that Dr. Dhawan was “there as needed” and handed over his responsibilities to Theronos’ full-time staff.
During a separate zoom hearing on Thursday, Ms Holmes’ lawyers opposed two reporters, including Theronos.
In one case, Magistrate Judge Nathaniel Cousins allowed the courtroom into John Carrero, a reporter who first exposed Theronos’ problems in The Wall Street Journal. Mrs. Holmes Mr. Carrero is listed as a potential witness, which usually prevents him from hearing the testimony.
Her lawyer argued for an exception, listing Ms Holmes for expelling Mr Gerro from the courtroom for “bad faith” and “hostility”. Ms. Holmes’ attorney, John Klein, Mr. He declined to say whether he would call Carrie as a witness.
Separately, Judge Cousins ruled that former Fortune reporter Roger Barlow did not need to transfer his statements for security. Mr. Barloff wrote Ms. Holmes’ first magazine cover story, as well as a series of articles alleging that he misled her.
Mr. Mr. Klein, to show the arbitral tribunal that he was in favor of paraffin. He said he would like to use Barlow’s notes. Judge Cousins called the rescue operation “a fishing trip.”