SAN JOSE, Calif. – In the seventh week of the fraud trial against Elizabeth Holmes, the founder of the failed blood testing startup Theranos, the testimony shifted from science to discussions of fake demonstrations and misleading marketing.

The jurors have heard from in the past few weeks former employee of the Theranos laboratory who detailed the blood test technology and Trading partner who stated that the start-up had not met deadlines or had not achieved the agreed targets.

This week, prosecutors focused on Ms. Holmes ‘alleged deceit and tried to represent the case that she deliberately misled Theranos’ investors, trading partners and the US military. Ms. Holmes has faced wire fraud and wire fraud conspiracies in twelve cases.

Here are the key takeaways from the week’s procedures.

This week’s star witness was Daniel Edlin, a college friend of Ms. Holmes’ brother who became a senior product manager at Theranos. Mr. Edlin testified that Theranos sometimes hid bugs or did not even try to analyze a blood sample during the technology demonstrations.

In some cases, he said, Theranos also removed abnormal results before sending reports to investors who tested the company’s technology, such as Rupert Murdoch, the media mogul. Mr Murdoch had his blood drawn at a demonstration in January 2015. He then emailed Ms. Holmes: “I’ve enjoyed every minute. Any blood counts? “

According to an email sent to Mr. Edlin, Mr. Murdoch’s test results came back with various problems. Mr. Edlin said a Theranos officer instructed him to remove some of the results before sending his report to Mr. Murdoch. He said he copied Ms. Holmes in the email.

Other questions related to Theranos’ marketing. In emails shown to the jury, the startup’s attorney Kate Beardsley marked the draft website copy as potentially misleading. One example was language claiming that Theranos machines could perform “any test available in central laboratories” on blood only “1 / 1,000 the size of a typical blood draw.”

But similar language made it into investor presentations, documents showed. Mr. Edlin stated that Ms. Holmes was “very dedicated and detail-oriented” in reviewing and approving all marketing and investor materials.

During cross-examination, Ms. Holmes ‘attorney pointed out cases where she was promoting transparency in Theranos’ marketing language. In an email dated November 2013, she wrote that a line confirming that Theranos used venous sampling – the typical method of blood testing Theranos had promised to disrupt with a single drop of blood – moved from a footnote in the main text should be postponed.

Prosecutors said this was still misleading as the line said Theranos’ use of vein suction was “unusual”. Earlier testimony indicated that Theranos used venous collection in about 40 percent of its tests for Walgreens.

To convict Ms. Holmes, the government must prove that she – and not Sunny Balwani, Theranos’ former chief operating officer and her former boyfriend – was in charge.

Your relationship is key. Ms. Holmes’ lawyers indicated on the file that they could argue that Mr Balwani abused Ms. Holmes. Mr Balwani, who faces separate proceedings next year, has denied these allegations.

This week Mr. Edlin testified that he saw Mr. Balwani move because of a disagreement with Ms. Holmes.

“She was generally the CEO, so she had the final say,” he said.

Due to his friendship with the brother of Ms. Holmes, Mr. Edlin also knew about the romantic relationship between Ms. Holmes and Mr. Balwani, which they kept secret. Ms. Holmes and Mr. Balwani were “much more relaxed” and “more social” outside of working hours, but “nothing special” stood out in their dynamic, Edlin said.

On Friday, the prosecutors made an important point at the beginning of the trial.

Shane Weber, a scientist at Pfizer, testified that after reviewing the Theranos data and interviewing Ms. Holmes in 2008, he was not impressed. In emails introduced as evidence, Mr. Weber wrote to colleagues that the conclusions in Theranos’ reports were “not credible” and that the company’s responses to questions were “not informative, tangential, distracting or evasive”. He recommended Pfizer not to work with Theranos.

That built on the testimony of. on last weekWhen Walgreens executives testified that Theranos used a 55-page validation report to solicit an investment from the retailer. The report included the logos of pharmaceutical companies including Pfizer and implied that they had endorsed Theranos’ technology.

Mr Weber said Theranos and Pfizer had done no significant business after 2010 when Ms. Holmes sent the report to Walgreens and others. Despite the implications contained in the report, Pfizer has never validated Theranos’ technology, he said, and came to the opposite conclusion.

On Friday, the jury heard the voice of Ms. Holmes for the first time. Bryan Tolbert, an investor at Hall Group, which invested $ 7 million in Theranos between 2006 and 2013, provided a replay of a phone call she made with investors in 2013.

During the first six weeks of the trial, prosecutors attempted to link Ms. Holmes to the problems in Theranos by discussing her emails, text messages and conversations. But hearing her describe Theranos’ military work, technology, and plans to transform the health system could resonate more with the jury.

Mr Tolbert said these promises – many of which prosecutors tried to show were false or misleading in previous statements – were key to his decision to invest in Theranos. On another part of the call, Chris Lucas, a venture capital investor who introduced Theranos Hall Group, described Ms. Holmes’ control of the company. “She has a firm grip on the company,” he said. “Don’t make a mistake.”

After the first recording was played, Ms. Holmes briefly broke her straight gaze to look at the jury.

Source link

Leave a Reply