There were hints of this defense in opening statements, when Wade referred to the company's technology as "real" and "innovative." "First they think you're crazy, then they fight you, and then all of the sudden you change the world."Īccording to The Wall Street Journal, Holmes' lawyers have said she may argue that "she believed any alleged misrepresentations were true and accordingly that Theranos was a legitimate business generating value for investors." "This is what happens when you work to change things," Holmes said on CNBC's Mad Money in 2015. Though Holmes denied that the allegations made by the Journal's original reporting were true, she's never told her side of the story from that point on in depth. If convicted, Holmes could be sentenced to up to 20 years in prison. Some of the charges also relate to Holmes allegedly misleading investors about the internal workings at Theranos and how much revenue the company was expected to generate. "The charges stem from allegedly deceptive representations about and its medical testing technology," reads a statement from the US District Court in Northern California.Įssentially, Holmes is accused of lying to patients about how the company's blood testing worked and how effective the tests were. Holmes is formally charged with two counts of conspiracy to commit wire fraud and 10 counts of wire fraud. The accuracy of test results that patients received from Theranos was also called into question.Īll this led to the charges filed against Holmes in 2018, a settlement with the Securities and Exchange Commission and the permanent shuttering of Theranos shortly thereafter.Ī 2019 documentary, a book called Bad Blood: Secrets and Lies in a Silicon Valley Startup by Wall Street Journal reporter John Carreyrou, and multiple podcasts about the company's precipitous fall helped bring mainstream attention to the story.įormer Theranos employee and whistleblower Tyler Shultz spoke with CNET in 2020 about the whole saga. The Journal reported that only a small portion of tests were being done with the company's testing machine, named Edison, and that many tests were being run on other companies' machines, using diluted blood samples. Holmes began to appear on the cover of various publications, including Fortune, sometimes drawing comparisons to Steve Jobs for her seeming powers of disruption and a penchant for high-necked black tops.īut the fortunes of both Holmes and Theranos began to change in 2015 when The Wall Street Journal took a deeper look into the company. At one point, the startup was valued at more than $9 billion. Theranos began to see more mainstream attention in 2013 when it signed up Walgreens and Safeway as potential customers. The company said it was developing proprietary technology that required gathering a smaller amount of blood than a conventional intravenous draw and was more portable than traditional tests sent off to a lab. In 2003, Holmes dropped out of Stanford University at 19 to found Theranos with the goal of disrupting the blood-testing industry. "We worked for years with teams of scientists and engineers to miniaturize all the technologies in the laboratory," Holmes testified, according to The Wall Street Journal. Holmes pulled down her COVID mask, appeared composed on the stand and at times smiled while answering questions about herself and Theranos. Next it was Holmes' turn, though her attorneys hadn't made prior indications she'd testify. The lawyers said Bonanni's testimony will show Holmes made genuine attempts to fix problems at Theranos and that the prosecution failed to mention progress made by the company. Then the defense called Theranos board member Fabrizio Bonanni to the stand. First up was Trent Middleton, a paralegal at the law firm representing Holmes, who explained documents illustrating Theranos' financial and operational history. Holmes' attorneys have pushed back in cross-examination, but on Friday they began to call witnesses of their own. Among numerous other witnesses, jurors also heard from a patient who received a false-positive HIV test from Theranos and a former lab director who shut down one of the company's labs after becoming concerned about data from another HIV test. This week they presented testimony alleging that Theranos doctored documents intended to show validation of the company's purportedly revolutionary blood-testing technology. Since September, federal prosecutors have attempted to make the case that Holmes misled patients and investors.
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