Inflation spiked in October, sinking Washington’s hopes that value features would decelerate.


 

Erin Griffith

Das testifies that he had to answer CMS with a affected person influence evaluation out of a regulatory, skilled and moral obligation.

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Erin Griffith

Das testifies that he defined the problems to Holmes utilizing the instance of feminine sufferers returning irregular PSA ranges (a prostate take a look at) as a result of “females ought to typically not have PSA detectable.”

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Erin Griffith

The CMS report exhibits that in quite a few months between 2014 and 2015, a variety of kinds of checks confirmed that 15 p.c of checks had been violating a standard high quality management rule.

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Erin Griffith

There’s an inventory of “circumstances” that weren’t met, together with “analytic techniques,” that means the devices and strategies used. Das testifies that he mentioned the problems with Holmes and the Theranos crew.

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Erin Griffith

In Nov 2015, CMS did an onsite survey of Theranos’s CLIA lab. In January 2016, CMS despatched Theranos a discover with the heading: CONDITION LEVEL DEFICIENCIES – IMMEDIATE JEOPARDY

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Erin Griffith

Dr. Das was engaged on a CMS audit whereas at Theranos. We talk about a “assertion of deficiencies” that was 121 pages lengthy.

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Erin Griffith

(He joined formally in March 2016, lengthy after Theranos had publicly launched.)

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Erin Griffith

Wow, Das testifies that when he began as lab director, he was not conscious that of Theranos performing any checks that it had developed in-house. No checks on Edison, Minilab or TSPU. No checks on finger stick samples.

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Erin Griffith

Protection is chiming in alongside the best way in opposition of this doc; the decide shoots it down as it’s already in proof.

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Erin Griffith

Kingshuk Das, a Theranos lab director, has taken the stand. Decreasing the lights to point out displays on a projector within the courtroom feels a bit like a Junior Excessive science class. We see CLIA Lab guidelines that exhibits CMS (fed regulators) can revoke CLIA certificates for rule violations.

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Erin Griffith

Redirect and re-cross had been extraordinarily quick and Sawyer is excused. We’re breaking and one other former lab director — Kingshuk Das — is up after lunch. I shall be getting a ticket to go to the courtroom so I can truly see the projected displays!

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Erin Griffith

That error was found when Theranos was making ready for an audit of its Clia lab. Sawyer says she wasn’t certain if it was in prep for one or on account of one. And with that Wade is finished.

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Erin Griffith

Once more we talk about that Sawyer agreed to remain at Theranos six weeks after her preliminary contract. Apparently the paperwork had been processed incorrectly and she or he was nonetheless listed because the lab director for a bit and Daniel Younger reached out to her about it.

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Erin Griffith

Wade asks about “an elaborate course of the place they warmed finger and famous locations to attract from.” Sawyer: “That’s fairly commonplace for finger sticks.”

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Erin Griffith

Talkin’ ’bout QA QC LDTs (high quality assurance high quality management lab developed checks). Wade asks Sawyer if she signed off on an LDT for finger stick testing. “Had you ever seen such an elaborate and particular process?” Sawyer says no.

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Erin Griffith

Lance Wade, a lawyer for Holmes, pushed Sawyer to say she solely requested for the listing as soon as. We additionally talk about an electronic mail the place Sawyer agreed to increase her time at Theranos (meant to undercut her feedback that she stop over considerations in regards to the lab).

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Erin Griffith

The protection is constant its cross-exam of Lynette Sawyer, who was a co-director of the Theranos lab for six months. Sawyer had testified that she was pissed off that Theranos didn’t give her an inventory of the lab workers.

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Erin Griffith

They’re projecting the displays onto a wall, which isn’t actually coming via within the overflow room. A juror needed to run and get glasses. The decide says he’s “very embarrassed” that the courtroom is having these issues and apologizes.

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Erin Griffith

Enjoyable occasions, we nonetheless haven’t began due to some sort of technical drawback.

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Erin Griffith

Again in San Jose for an additional day of testimony in U.S. v. Holmes. The attorneys are as soon as once more combating about upcoming testimony.

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Erin Griffith

She resigned in 2015 as a result of she was “very uncomfortable in regards to the lack of readability in regards to the lab” and who was in it. There was not even an individual she might attain out to to speak about points she had with the paperwork she was meant to log off on.

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Erin Griffith

She by no means received experiences about lab actions. She solely noticed paperwork about F.D.A.-approved checks on common blood analyzers. She had no understanding that Theranos was utilizing its personal units on assays. Whew.

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Erin Griffith

She by no means met Elizabeth Holmes. She by no means met her lab co-director (the longtime dermatologist of Sunny Balwani). Her job was to signal Docusign paperwork that she had no capability to edit.

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Erin Griffith

So, Dr. Sawyer grew to become co-director of the lab after Rosendorff left. She was instructed nothing about his departure. She by no means went to Theranos’s lab. By no means knew something about it growing its personal checks. By no means heard of Edison, Minilab, or any of Theranos’s labs.

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Erin Griffith

New witness for the final 30 minutes of the day. The U.S. has known as Lynette Sawyer. She was a co-director of Theranos’s California scientific lab between 2014 and 2015. She was initially meant to be a fill-in for 2-Three months.

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Erin Griffith

Throughout that point, was Ms. Holmes nonetheless your major supply of details about Theranos? Lucas says sure. Lucas additionally testifies he didn’t have any details about Theranos’s monetary state of affairs earlier than investing in 2013.

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Erin Griffith

Protection made some factors earlier about Holmes’s age. Lucas incorrectly estimated her age as 19 when he first invested (she was 21). In re-cross, Bostic factors out that she was 29 with a decade on the helm of Theranos by the point Lucas’s second funding was made.

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Erin Griffith

Protection factors out that Lucas received a 2.5 p.c price and 16 p.c of the upside for investments he made on behalf of Corridor Group into Theranos. Black Diamond Ventures received comparable phrases on the investments made into Theranos on behalf of 30 people.

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Erin Griffith

Downey tried to make the purpose that Lucas’s rush to get into the late 2013 deal might have been to get in at a lower cost since Theranos was additionally planning one other spherical of funding at a better value the following 12 months.

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Erin Griffith

For the final 30 minutes or so now we have achieved a deep dive into the minutia of Black Diamond’s 2006 funding. Which funds, the closes, the co-investors, the value, the greenback quantities.

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Erin Griffith

As soon as once more we’re proven a million-dollar funding quantity with a 25 cents on the tip. Downey asks Lucas to clarify that and he provides up a, “Actually? You need me to reply that?” (The reason being to make it a good variety of shares.)

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Erin Griffith

We’re occurring a break and counsel plans to speak about “that morning matter” which was a cryptic factor about “transactions” earlier than we return. No concept what it might be.

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Erin Griffith

Downey spends a whole lot of time on Theranos’s patents and I’m undecided what the upshot is moreover displaying that having a patent is a optimistic for traders. Lucas says growing the know-how is extra essential.

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Erin Griffith

Downey exhibits Lucas an inventory of ordinary due diligence paperwork — company data, and IP lists, and materials agreements, and so on. Did Lucas have a look at these for Theranos? “No we didn’t conduct all of this.”

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Erin Griffith

Downey asks if its customary for VC corporations to retain a regulation agency for diligence in offers and whether or not Don Lucas or Pete Thomas of ATA Ventures, one other Theranos V.C. investor, did so. Chris Lucas says he doesn’t know.

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Erin Griffith

Lucas is now being cross-examined by Kevin Downey. Did he interact within the regular technique of assessing an organization? “I don’t bear in mind how a lot diligence we did. This was a state of affairs the place Don had already been on the board. … Clearly we felt very comfy.”

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Erin Griffith

As soon as once more, we see the Parloff Fortune article. At difficulty is just not the truth that the article had inaccurate data (which Fortune later corrected), it’s that Holmes despatched it to so many traders. “Nice article!” Lucas says. “Very pleased with the state of affairs, proud we had been concerned, very pleased with Elizabeth, the entire thing.”

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Erin Griffith

Why didn’t Holmes wish to give full financials to traders? Commerce secrets and techniques. “She was very involved, and doubtlessly rightly so, that what she was engaged on was very transformative and they didn’t wish to have any info get out into the general public area in order to present one in every of her opponents an opportunity to crush the corporate earlier than the corporate received to fruition.”

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Erin Griffith

Lucas testifies that the chance profile of his two investments in Theranos had been very totally different: In 2006, it was early stage and excessive danger. By the most recent stage 2013 deal, “the chance goes down and you’ll hope to have a better certainty of return.”

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Erin Griffith

Lucas testifies that it was very uncommon to speculate with out getting full financials from a portfolio firm however he felt comfy doing it with Theranos due to his relationship with Holmes.

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Erin Griffith

U.S. Legal professional John Bostic goes via all of the legalese within the funding docs, since we all know that the protection will attempt to use these disclaimers that say traders acknowledge danger and are subtle and so on. in its cross-exam.

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Erin Griffith

This can be a wire fraud case so we gotta speak in regards to the precise, you understand, cash wires. Lucas discusses the logistics of the wire switch from Lucas’s fund to Theranos, which, enjoyable reality, is definitely formally named Actual-Time Cures.

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Erin Griffith

Why the urgency? As a result of Walgreens needed to convert its $40 million word to fairness by the tip of the 12 months. Lucas says he supported that as a result of “You need extra individuals within the wagon serving to fund the corporate.”

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Erin Griffith

Lucas was additionally cautious of how shortly Theranos was attempting to shut the spherical. Two weeks between opening the spherical and shutting was “fairly compressed.”

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Erin Griffith

We see an inventory of questions that Lucas emailed to Holmes upfront of the 2013 funding. He was pushing her on when traders might get a liquidity occasion.

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Erin Griffith

~ Checking the packing containers ~ Prosecutor John Bostic asks about all the assorted (inaccurate) claims Theranos made about its know-how, partnerships, growth plans, accuracy, and so on. Was that an essential consider investing and why? Each investor has gotten this listing of questions.

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Erin Griffith

In 2013, the agency invested $5.Four million. Holmes was his fundamental supply of information for Theranos. His uncle secondary. They regularly had meals collectively and knew one another socially. However “there was not a whole lot of transparency” about what was occurring within the firm, he stated.

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Erin Griffith

In 2006, Black Diamond Ventures invested $1.5 million into Theranos. “It was actually past a drawing on a serviette however we didn’t imagine at the moment that’s was purposeful and absolutely developed.”

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Erin Griffith

Chris Lucas based the agency in 1998. Don Lucas launched him to Holmes, who he stated this about: “She’s very passionate in regards to the venture. Very honest in what she was attempting to do. Labored on a regular basis. It was all Theranos on a regular basis for Elizabeth.”

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Erin Griffith

🩸🩸Again in court docket at the moment for U.S. v. Holmes.🩸🩸 America has known as Christopher Lucas, whose agency Black Diamond Ventures was an early investor Theranos. He’s the nephew of the famed investor Donald Lucas.

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Erin Woo

After a really environment friendly redirect, Mosley is finished, and court docket is ending for the day. Trial will resume at 9:30 a.m. Pacific time tomorrow.

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Erin Woo

Did Theranos at the moment have income? Sure. Use its personal units? Sure. Schenk: “Did you assume Ms. Holmes had a imaginative and prescient that at some point Pfizer would write one thing good about Theranos?” No, he learn it as a examine that had already occurred.

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Erin Woo

All of Schenk’s questions are about whether or not Mosley thought Theranos’s claims had been present, or Ms. Holmes’s imaginative and prescient. Again and again, Mosley’s saying that he thought Theranos was at the moment doing this stuff.

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Erin Woo

Mosley stated he had an understanding that Theranos might carry out correct checks. Once more, that got here from the supplies. He additionally thought they’d a wholesome relationship with Walgreens on the time, from the supplies and the Fortune article.

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Erin Woo

Schenk: Did you perceive that Theranos might at the moment carry out an enormous array of checks? Mosley: I did. Mosley testifies that understanding got here from the written supplies.

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Erin Woo

Cross is finished, and we’re onto redirect. Schenk says he has simply “a few questions.”

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Erin Woo

Again to a number of the web site language that got here up in Edlin’s testimony. “Often, a venipuncture could also be required based mostly on the lab order, however that is unusual, and our purpose is to remove this solely.” Mosley: “I don’t imagine I knew this on the time.

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Erin Woo

We’re taking a look at an archived copy of the Walgreens web site. A outstanding heading: “Goodbye huge, dangerous needle.” A footnote all the best way down the web page notes that testing might occur with a finger stick or venous draw. Mosley says he doesn’t bear in mind seeing this language.

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Erin Woo

We’re returning to due diligence. Wade asks if Mosley seemed on the Theranos web site, and Mosley responds, “I can’t think about that I didn’t have a look at the web site.”

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Erin Woo

Kissinger is quoted on this Parloff article saying that “there isn’t a efficiency related to” Elizabeth, which is ironic, provided that her public persona — the voice, the turtlenecks, the purple lipstick, and so on. — was such an enormous a part of the Theranos delusion!

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Erin Woo

Mosley testifies that the article was “a really compelling story” that was “completely” impactful when he learn it. Wade’s going via the article web page by web page.

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Erin Woo

We’re again to the Parloff article! Mosley despatched it to the C.E.O. of the DeVos household workplace.

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Erin Woo

Holmes spoke on an hour-long panel known as “Recreation Changers.” (Wade wished to publish extra of this doc, which listed all the totally different audio system on the 2014 BDT convention, however Choose Davila stated it wasn’t related.)

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Erin Woo

We’re discussing an investor convention the place Mosley met Holmes for the primary time. Wade asks if Mosley would characterize it as a “Woodstock for personal household workplaces,” one of the best line of the day to this point; Mosley declines however agrees that it was for “excessive internet value people.”

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Erin Woo

Wade is now speaking in regards to the Pfizer report. He has Mosley affirm that he thought Pfizer had written the report, however by no means truly instantly requested whether or not Pfizer had.

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Erin Woo

Wade is asking about Mosley’s characterization of Theranos’s “nationwide retail footprint,” noting that the Walgreens partnership was solely in CA and AZ — seemingly attempting to point out that Mosley might have additionally overstated Theranos’s attain.

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Erin Woo

Mosley additionally wrote: “Essentially the most intensive proof provided relating to the reliability of the Theranos know-how and its utility is a Research Report ready by Pfizer based mostly on a scientific most cancers therapy trial.” As we all know, Pfizer didn’t put together it.

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Erin Woo

We’re again to the memo Mosley wrote. He referred to a Johns Hopkins assessment that concluded that the know-how “is novel and sound.” Mosley additionally famous the Walgreens partnership. Wade asks: Would you anticipate Walgreens to do due diligence? Mosley responds: Sure.

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Erin Woo

Wade is strolling us via the binder Theranos gave Mosley to assessment. Included within the binder: a line claiming that “Theranos know-how is ready to carry out the total menu of laboratory checks,” together with round 200 pages of supporting materials.

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Erin Woo

Nonetheless, in a 9/2/14 memo Mosley wrote to Kissinger, he wrote: “There’s substantial information and different info testifying to the standard, efficiency and reliability of the Theranos know-how and gear.” Wade highlights this line.

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Erin Woo

Wade asks Mosley to verify that he hadn’t achieved substantial analysis into the corporate at this level, and Mosley counters that he doesn’t assume he would have had a option to.

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Erin Woo

Mosley testifies that his 2014 evaluation of Theranos got here from printed supplies offered by the corporate and his conversations with Holmes. Wade notes that Mosley didn’t point out media in his define, however Mosley stated he had “actually” learn media articles in regards to the firm.

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Erin Woo

He was additionally related with the Oppenheimer household ($20 million) and John Elkann ($5 million), who had been buddies of Kissinger’s however not Mosley’s purchasers.

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Erin Woo

Mosley was VERY well-connected with Theranos’s traders. Per a slide entered into proof, he was the lawyer for the Walton household ($150 million invested), DeVos household ($100 million), Cox household, ($100 million), Andreas Dracopoulos ($25 million), Henry Kissinger ($Three million).

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Erin Woo

Good morning! I’m again within the courtroom for the Elizabeth Holmes trial. After some pretrial arguments about whether or not testimony from a affected person known as BB ought to be excluded (no choice but disclosed), the lawyer Daniel Mosley is on the stand to proceed his cross.

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Erin Griffith

The jury is dismissed for the day. Chaotic vibes at the moment, between the man who snapped a photograph within the courtroom, a stifling 76 diploma room and a labored up particular person within the corridor bugging journalists about their parking dispute.

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Erin Griffith

Mosley’s description of what he does at BDT is comically obscure. “I’m concerned within the administration of the agency, I run the New York workplace. We advise and work with excessive internet value households and I do this kind of labor.”

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Erin Griffith

I think about this shall be a contentious cross-examination. We’re already speaking third-generation billionaires and ranges of white shoe regulation agency status.

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Erin Griffith

Theranos’s funding docs had a provision for necessary redemption, i.e., the corporate might purchase again shares at any value at any time. 🤔 Holmes reassured Mosley that wouldn’t occur.

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Erin Griffith

We see an inventory of Theranos’s dangers in Mosley’s memo to Kissinger. Prosecution asks why it doesn’t listing the chance that Holmes might give inaccurate descriptions of her firm’s know-how. “I didn’t imagine it was a danger,” he says.

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Erin Griffith

Mosley testifies that he appreciated that Elizabeth Holmes’ shares in Theranos had 100x voting energy of the opposite traders. “She was clearly a visionary that had created this firm and developed the know-how and having her accountable for the corporate was a superb factor.”

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Erin Griffith

Mosley wrote a memo to Henry Kissinger about Theranos’s know-how with a robust, sturdy endorsement. He believed absolutely within the conclusions from the pharma validation experiences.

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Erin Griffith

Byron Trott’s agency, BDT, threw a convention in Chicago in 2014, the place Mosley launched Holmes to the DeVos household, the Walton household and the Cox household — all purchasers of his.

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Erin Griffith

We speak in regards to the income projections and Schenk pre-empts the protection’s argument that projections are in regards to the future and never presupposed to be correct by asking Mosley about that. Because it was October, Mosley anticipated the $140 million income projection for the 12 months to be fairly shut.

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Erin Griffith

It’s unbelievable how a lot mileage Holmes received out of 1 Fortune article. I feel each investor who has testified stated they learn it. I assume prosecution retains bringing it up as a result of we all know the creator Roger Parloff will quickly testify.

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Erin Griffith

We run via your complete rigmarole now we have now seen many occasions: itemizing out the precise and clear guarantees Theranos made to traders about its know-how and the investor testifying they invested on that info.

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Erin Griffith

We’re taking a look at illegible handwritten notes Mosley took and it appears like deciphering historical scrolls

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Erin Griffith

Holmes snail mailed Mosley a thick stack of shows in 2014. We talk about traces like: “The corporate plans to be personal for the long run.” “Theranos has grown from money from its contracts for a while.”

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Erin Griffith

The Internet of Highly effective Males goes on: We see an electronic mail the place Mosley provides to attach Holmes to the Walton household. Mosley says Holmes wished traders who had been “prime quality households.”

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Erin Griffith

Subsequent witness is Dan Mosley, a lawyer and man about enterprise. He invested $6 million in Theranos after Henry Kissinger, his shopper, launched him in 2014. He now works for Byron Trott, Warren Buffett’s banker who was mentioned through the DeVos testimony.

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Erin Griffith

Theranos’s work with S-P fell off when the corporate merged with Merck. We see emails from Holmes to Cullen attempting to maneuver the validation ahead with no response from Cullen. Kline make the ultimate level that S-P by no means instructed Holmes about her considerations.

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Erin Griffith

Kline, who’s lots folksier than Wade, asks Cullen to repeat that she by no means voiced her considerations with Theranos to the corporate as a result of it was awkward. Aside from one electronic mail, is Cullen conscious of any emails from S-P or Theranos asking for extra info? “No.”

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Erin Griffith

(Be aware: This was 2009.) “There was inadequate technical element for us to have the ability to consider the know-how.” She says Holmes answered virtually completely, even questions directed to others.

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Erin Griffith

Cullen testifies she by no means objected to the validation protocol. We see the bill for Theranos’s work with S-P with the target of “complete validation of the Theranos cytokine panel below F.D.A./I.C.H. pointers.”

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Erin Griffith

Kline asks in regards to the validation work that S-P did with Theranos was adequate. “It hit the necessities, however on the finish of the day, the execution wouldn’t have been in alignment with F.D.A. necessities for validation.”

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Erin Griffith

John Kline is main a cross-examination. Cullen testifies that S-P was impressed with the demo they did of 1 blood take a look at on a Theranos machine they got.

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Erin Griffith

Within the second model of this doc, the conclusion provides the phrase “extra” to the road in regards to the outcomes’ accuracy. Cullen says once more she doesn’t agree with that conclusion. Finish of direct examination of Cullen.

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Erin Griffith

We see the notorious validation report that featured Schering-Plough brand. Cullen says she didn’t agree with the report’s conclusions and nobody at S-P stated the docs had been correct.

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Erin Griffith

Cullen says she didn’t say something about it on the assembly as a result of “um, it’s awkward.” Sadly I can’t see Holmes’s expression however I’ve a sense in the event that they run into one another within the rest room later it’ll be much more awkward! 😬

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Erin Griffith

Cullen provides that there have been no direct solutions to questions and the questions had been pretty technical, so the reply ought to be pretty technical and direct. “There have been what I’d describe as cagey responses or makes an attempt to redirect to different matters of debate.”

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Erin Griffith

We see a calendar invite and agenda from a Could 5 assembly. This was the primary time Cullen met Holmes in particular person. Cullen stated she requested many questions and “was dissatisfied, fairly truthfully, with the response to the questions.”

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Erin Griffith

Peterson is excused. Subsequent witness is Constance Cullen. Cullen labored at Schering-Plough. They requested her to take part in evaluating Theranos’s know-how. They beta examined just a few machines and she or he visited Theranos’s workplaces.

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Erin Griffith

It’s normally fairly clear within the gallery who’s a reporter and who’s a member of the general public. There are at all times just a few individuals in fits who I can’t fairly place. The man who took a photograph had a go well with on. He’s, unsurprisingly, not right here now.

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Erin Griffith

Uh… we went on a break as a result of somebody walked into the again of the courtroom and took a photograph. That particular person is now being chastised by the decide.

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Erin Griffith

Theranos instructed RDV in October of 2014 that it will do $140 million in income that 12 months. It had zero. Prosecutor Robert Leach: “Did you in anyway dream that income for that 12 months can be zero?” She says no, “projections ought to be considerably shut.”

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Erin Griffith

Peterson pushes again: “You’re attempting to measure our sophistication as an investor after we weren’t given full info.” Wade strikes to strike and Choose Davila tells Peterson to attend for Mr. Wade’s questions.

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Erin Griffith

Wade exhibits Peterson the authorized settlement for the funding and goes via all the traditional disclaimers — projections can change, the funding was speculative, RDV (the DeVos agency) was accredited and complicated, and so on. The “you need to have identified higher” argument.

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Erin Griffith

Some factors of rivalry: When the funding choice was made. Whether or not Peterson had gone to Theranos’s web site to see it marketed CLIA lab checks. What Theranos stated about its army work. Feedback Peterson made in prior depositions that contradict her testimony at the moment.

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Erin Griffith

Wade retains asking questions meant to entice Peterson over prior feedback, she retains providing extra detailed solutions, Wade retains hanging her solutions from report. After hanging a minimum of 5, the decide scolds Wade: “A few of your questions are lend themselves to a proof.”

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Erin Griffith

Proper out the gate prosecution objects to an electronic mail protection is utilizing to refresh Peterson’s reminiscence that she wasn’t on. Choose Davila: Something can be utilized to refresh a witness’s recollection — a shoe, a sock…. Protection lawyer Lance Wade: I’ll maintain my footwear on, your honor.

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Erin Griffith

🩸 US v. Holmes continues at the moment with cross-examination of Lisa Peterson, who managed the DeVos household’s $100 million funding in Theranos.

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Erin Griffith

Courtroom for US v. Holmes is cancelled for at the moment, damaged water fundamental. Again Tuesday! Weekly “wrap-up” of at some point of testimony coming quickly.

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Erin Griffith

Now a court docket marshall is actually hovering over my shoulder watching and listening to me kind. There’s an overflow room however the sound is terrible and unreliable. So.. .I feel I’ll save my keystrokes for my very own notes and restrict my tweeting for the remainder of at the moment.

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Erin Griffith

It went on and on, with Wade even studying notes from a deposition by RDV attorneys from years prior that used the time period unicorn and Peterson insisting, “I might by no means use that phrase, unicorn.”

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Erin Griffith

Wade: Have you learnt what a unicorn is?

Peterson: Are you able to clarify it?

Wade: You’re the funding skilled.

Peterson: It’s not one thing we usually put money into.

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Erin Griffith

Unbelievable unicorn content material with protection and witness quibbling over the definition of a unicorn.

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Erin Griffith

Numerous dialogue about Dan Mosley, who was a lawyer at Cravath. Some paperwork had been emailed through private Gmail accounts, Peterson stated, as a result of “We didn’t know what his function was in all of this. We didn’t wish to get him in hassle.”

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Erin Griffith

Lance Wade (Holmes’s lawyer) is just not taking part in good with Peterson, grilling her on whether or not the DeVos household truly ever learn her memos and her previous feedback below oath in depositions about that reality.

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Erin Griffith

That is an fascinating malicious program to play the jury movies that clearly and succinctly summarize what now we have discovered to date about Theranos’s issues and in addition displaying Holmes saying the buck stops together with her – “I’m the founder and CEO of this firm.”

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Erin Griffith

Choose Davila has overruled objections to taking part in clips of Holmes on Mad Cash and we’re watching the half the place she says “That is what occurs whenever you work to vary issues. First they assume you’re loopy, then they struggle you, then you definitely change the world.”

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Erin Griffith

We’re taking a look at Theranos’s income projections, together with that daring $990m for 2015 (with a $230m revenue). Peterson stated she didn’t know that Theranos had zero income in 2013 and 2012.

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Erin Griffith

Recall {that a} Pfizer exec testified it had nothing to do with that validation report. It by no means validated Theranos’s tech. However Theranos put its brand on the report and confirmed it to traders.

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Erin Griffith

Prosecution exhibits Peterson the falsified validation report now we have heard a lot about. “Did you imagine this report as ready by Pfizer?” “Sure.” Peterson says that endorsement was a giant consider investing.

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Erin Griffith

A well-recognized rundown of Theranos claims to traders. Its know-how had been “comprehensively validated over the course of the final 7 years by 10 of the 15 largest pharmaceutical firms” and subjected to proficiency testing and audits from regulatory businesses.

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Erin Griffith

We see a memo that hits this level once more, stating that Theranos’s objective was to seek out traders “with much less emphasis on liquidity and extra emphasis on long run capital appreciation.”

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Erin Griffith

“She was hand selecting 5-6 personal households to put money into her firm. … She was inviting us to take part on this alternative.” Peterson says Holmes didn’t need giant PE corporations/institutional traders b/c they wished Theranos to go public and she or he wished to remain personal.

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Erin Griffith

Attention-grabbing level about energy dynamics of investing in excessive danger startup unicorns: “Did you’re feeling like Theranos was choosing you as an investor?” Peterson: “Very a lot so.”

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Erin Griffith

When Peterson’s crew requested Holmes in regards to the dangers of investing in Theranos, she stated the chance was within the “execution” of the Walgreens rollout. Was there a dialogue of know-how danger? Peterson says no.

Erin Griffith headshot

 

Erin Griffith

We see an electronic mail from Jerry Tubergen, C.E.O. of RDV, to colleagues. He hooked up the notorious Fortune cowl story, writing “This morning I had one of the fascinating conferences I can recall with the ladies profiled within the hooked up Fortune journal article.”

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Erin Griffith

Lisa Peterson has taken the stand and defined her function at RDV Company, the household workplace of the DeVos’s. She manages their PE fund investments and co-investments.

She requested to work on the Theranos deal bc she’d had some healthcare investing expertise.

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Erin Griffith

Evidently that is extraordinarily disturbing for the media right here. Members of the press now policing bystanders to observe the principles (silence telephones and so on) in order to not piss off the decide.

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Erin Griffith

(To begin with the juror who finds the typing distracting ought to actually put on the listening to aids offered by the court docket. Second, this can be a pandemic drawback. Jurors are spaced out and a few are sitting within the first rows of the viewers.)

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Erin Griffith

Ugh as soon as once more the jurors are pissed off with loud typing from the press gallery. The decide says if he will get one other criticism he’ll banish all laptops to the overflow room. A court docket marshal goes to implement the “silent keyboard” rule (WHICH IS NOT A THING!).

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Erin Griffith

After her we’ll hear from Alan Eisenman, one other investor.

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Erin Griffith

In the present day’s first witness shall be Lisa Peterson, who manages cash for the DeVos household.

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Erin Griffith

If there’s one factor Choose Davila hates its getting right into a “mini-trial” about aspect points with no bearing on the problems being tried.

Erin Griffith headshot

 

Erin Griffith

🩸 Elizabeth Holmes trial, Week 8 🩸

The attorneys are as soon as once more beginning the day by combating over proof: Prosecution desires to point out video clips of Elizabeth Holmes defending Theranos on Mad Cash and elsewhere after the WSJ expose.

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Erin Griffith

Cross-examination wrapped up. P.S. Appears like we’re going to start out doing bonus trial days on Mondays. All blood on a regular basis!! 🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉🩸💉

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Erin Griffith

Protection asks whether or not the status of Don Lucas, the partnership with Walgreens, its patent portfolio and its huge title board members had been components in his choice to speculate. Tolbert says sure.

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Erin Griffith

The decision in query was truly with Chris Lucas’s funding fund and Holmes was solely on a part of it. Protection performs part of the tape the place Lucas explains a inventory cut up that provides Holmes full management: “She has a agency grasp on the corporate — let there be no mistake.”

Erin Griffith headshot

 

Erin Griffith

In some ways this trial boils down one central rigidity which is taking part in out on this cross-examination: Had been these traders fools who didn’t do correct diligence? Or was their diligence tainted as a result of Holmes fed them dangerous data?

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Erin Griffith

I’m undecided how properly this clip truly makes the protection’s case, since she instantly says the funding cash will permit them to select up work on these initiatives “in parallel.” Protection hits Tolbert for not asking following up questions after the decision.

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Erin Griffith

On cross-examination, protection replays some parts of the investor name. On this one, Holmes discusses how Theranos was pausing its work on army and pharmaceutical initiatives with a purpose to focus solely on the retail rollout.

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Erin Griffith

We’re now going via the technical technique of describing how Corridor Group wired its funding cash to Theranos. That is, in spite of everything, a wire fraud case.

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Erin Griffith

One factor talked about on the investor name which has not been addressed — Holmes famous that there have been some early traders who had been searching for liquidity. Marvel if we’ll study particulars about whether or not anybody cashed out alongside the best way and who they had been.

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Erin Griffith

Tolbert says Theranos’s purported army work was a giant a part of why he invested as a result of it spoke to a higher mission. “Theranos wasn’t nearly a possibility to earn cash … however to take action in a method that was useful for heaps and plenty and plenty of individuals.”

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Erin Griffith

I.P.O.? Theranos has a really long-term mind-set. “We plan on doing this for the following 20-30-40-50 years.” Army? Confidentially, it’s “a giant deal for us.” Competitors? That’s why we’re so secretive. How are costs so low? We’re remodeling the care course of, ergo financial savings.

Erin Griffith headshot

 

Erin Griffith

We hearken to a protracted recording of Holmes answering questions from traders about when the corporate will go public, whether or not it really works with the army and its competitors. Her solutions, because the Pfizer man eloquently put it, are “non-informative, tangential, deflective and evasive.”

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Erin Griffith

Within the recording, Holmes says Theranos was rising on “money from operations,” a.okay.a. profitably, since 2006. Tolbert testifies he believed the proceeds of the 2013 fund-raise can be used for retail growth — not R&D or tech improvement.

Erin Griffith headshot

 

Erin Griffith

I forgot to tweet that one other juror received dismissed at the moment for trigger. Kinda fearful I’m dangerous luck, each time I come again from lacking just a few days of the trial, one other one bites the mud.

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Erin Griffith

In a 3rd recording, Holmes describes fund-raising — in 2013 Theranos issued shares at $75 a share, up from 82 cents a share when Corridor Group and Chris Lucas’s agency first invested in 2006.

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Erin Griffith

In a second recording, we hear Holmes describing the best way Theranos disrupts conventional phlebotomy with its finger prick checks. Tolbert testifies that that’s the reason he invested.

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Erin Griffith

We’re going till Four p.m. at the moment however I doubt we get to a few not to mention 4 witnesses. Tolbert testifies in regards to the clip we simply heard and his impression of what he thought Theranos was truly doing. (Blood testing machines — not a central lab.)

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Erin Griffith

Holmes glanced verrrrrry briefly over to the jury after the recording. In any other case sitting up stick straight and never transferring, as standard.

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Erin Griffith

Sadly I’m not capable of see the jurors’ faces upon listening to Holmes’s voice for the primary time. Within the recording, she is giving the standard pitch about Theranos’s huge imaginative and prescient of making “the most important lab within the nation” and to “change the truth of lab testing at the moment.”

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Erin Griffith

We’re going to hearken to some recordings of a name Holmes had with traders. Earlier than introducing them, Schenk, the prosecutor, requested Tolbert if he had had the prospect to “observe” Holmes’s voice in conferences and on the decision. 👀

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Erin Griffith

In 2013, Corridor Group invested $5 million into the corporate. The corporate had round 10 days to resolve on the funding and the share value had jumped to $75 a share. Tolbert recorded a pitch name with Holmes. He stated he’d been pissed off about not having a whole lot of details about Theranos.

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Erin Griffith

We see an electronic mail from Chris Lucas to Corridor Group in 2013 about Theranos including board members. It says “Hopefully, this additionally means we’ll begin receiving extra communication from the corporate.” Tolbert stated he’d been wanting extra visibility into the corporate.

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Erin Griffith

Theranos additionally had promised traders it will go public in 2008. 🙃

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Erin Griffith

After that, in 2006, Tolbert determined to speculate $2 million through the funding fund of Don Lucas’s son Chris.

Erin Griffith headshot

 

Erin Griffith

Tolbert had dinner with Holmes and Lucas the place they talked about Holmes’s imaginative and prescient and in addition “heard some enjoyable tales from Don Lucas about his funding profession.” He additionally visited Theranos’s workplace and somebody gave him a cartridge.

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Erin Griffith

We see an in depth monetary projection from Theranos that exhibits the corporate changing into worthwhile in 2007. (Narrator: It didn’t…)

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Erin Griffith

Level for crew “Theranos is just not a Silicon Valley firm as a result of it didn’t elevate from conventional enterprise capitalists”: Corridor Group was primarily an actual property funding agency. Counterpoint: Corridor Group was launched to Theranos by Don Lucas.

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Erin Griffith

Subsequent witness: Bryan Tolbert of Corridor Group. The agency invested $5 million in Theranos in late 2013.

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Erin Griffith

On cross-examination of Shane Weber, Holmes lawyer John Cline hammers the purpose that Weber didn’t ship his report about Theranos to Holmes. The purpose (I assume) being that, with out seeing the report, Theranos had each motive to maintain considering Pfizer appreciated its know-how.

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Erin Griffith

That is it for direct.

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Erin Griffith

Did Pfizer and Theranos have any significant enterprise dealings after 2010? No. Do you agree with assertion that Pfizer validated Theranos’s know-how? No I don’t. You got here to the alternative conclusion? I did.

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Erin Griffith

A humorous factor about TV trials is that they clarify the objections in regular language however in actual life they are saying issues like “objection, that is 702 territory” or “identical 406 from final time your honor.”

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Erin Griffith

We get a aspect by aspect of the report, one with Theranos brand on it and one with the Theranos and Pfizer logos on it. Wouldn’t it be truthful to say in 2010 or after that Pfizer endorsed Theranos’s know-how or comprehensively validated Theranos’s know-how? Weber: “No”

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Erin Griffith

Now we see an electronic mail from Walgreens to Pfizer, which incorporates the validation report I discussed above the place Theranos put Pfizer’s brand and implied its approval. Weber stated he hadn’t seen this earlier than the feds confirmed it to him.

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Erin Griffith

Weber known as Elizabeth Holmes to inform her Pfizer wasn’t going to work with Theranos. In an electronic mail to a colleague, he stated “I used to be well mannered clear crisp and patiently agency as she pushed again.” Writes that Holmes requested for different names at Pfizer to speak to and he “politely deflected.”

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Erin Griffith

The doc additional lists six technical due diligence questions that Weber requested Theranos execs on a cellphone name, and concludes their solutions had been “indirect, deflective or evasive non-informative solutions.”

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Erin Griffith

Most of Weber’s solutions have been very technical and stuffed with jargon certain to confuse jurors however that listing of adjectives hits fairly exhausting. (Protection tried to object.)

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Erin Griffith

Additional in his abstract, Weber says Theranos’s conclusions are “not plausible” and calls the corporate’s solutions to due diligence questions “non-informative, tangential, deflective or evasive”

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Erin Griffith

(Recall that final week we noticed a doc with Pfizer’s brand on it that implied that the corporate validated Theranos’s know-how, which Holmes used to solicit funding from Walgreens and others)

Erin Griffith headshot

 

Erin Griffith

After speaking with Elizabeth Holmes and reviewing a bunch of paperwork (together with a patent), Weber created a abstract report on using Theranos know-how. Imagine that is the report the protection didn’t need proven to jurors, and the decide allowed Web page 1. Weber’s suggestion: “Theranos doesn’t presently have any diagnostic or scientific curiosity to Pfizer.”

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Erin Griffith

We start with a sequence of emails establishing why Weber was concerned with Theranos at Pfizer — his function was to make a suggestion to the corporate about its know-how. “We had been searching for diagnostic capabilities that might open the door for simpler consumption of sufferers.”

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Erin Griffith

The U.S. has known as Shane Weber, who was a scientist at Pfizer. He’s talking loudly and clearly into the mic and for that I thank him. 🙏

Erin Griffith headshot

 

Erin Griffith

Appears like we’ll be listening to from our first investor (apart from Walgreens): Brian Tolbert of the funding agency Corridor Group is more likely to testify at the moment.

Erin Griffith headshot

 

Erin Griffith

🩸 Again in court docket for the fraud trial of Elizabeth Holmes. It’s wet, the prosecution plans to name 4 witnesses at the moment, and the press corp is typing each so rigorously after being scolded for distracting a juror with our keyboards.

Erin Griffith headshot

 

Erin Griffith

As standard, we’re beginning late as a result of the attorneys are combating over admitting a doc and there is a matter with a juror.

Erin Woo headshot

 

Erin Woo

Edlin is excused, and we’re breaking for the day. Erin Griffith shall be within the courtroom on Friday when trial resumes.

Erin Woo headshot

 

Erin Woo

Edlin on his alternative to depart: “Within the 12 months after the preliminary WSJ articles got here out, the corporate claimed that it will be capable to show that the know-how labored and show that these claims weren’t true. The corporate was unable to persuade anybody that these claims had been unfaithful and that its know-how and science labored. That gave me severe doubts as as to if the corporate was able to proving its know-how labored.” He got here to the conclusion they might by no means be capable to show it, he stated.

Erin Woo headshot

 

Erin Woo

Bostic: At Theranos, whose choice was it to reveal what info to the press? Edlin: In my expertise, Elizabeth was the one one who communicated instantly with the press. Bostic: Did anybody make choices about what she was allowed to say? Edlin: I don’t know if she consulted with anybody.

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Erin Woo

Bostic: Who did the ultimate assessment of investor shows? Edlin: Elizabeth.

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Erin Woo

Now, taking a look at when Holmes weighed in on web site language, asking to say a 4-hour window fairly than 2 hours. Moderately than addressing this, Bostic appears to be declaring that in different instances (together with web site/investor shows), language round “superior accuracy” made it in.

Erin Woo headshot

 

Erin Woo

OK, and we’re now again to an electronic mail Downey introduced up, the place Holmes desires to place the language across the venous attract the primary physique of textual content. The language she wished known as venipunctures “unusual.” Bostic factors out that venous attracts had been utilized in 40 p.c of the time at Walgreens.

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Erin Woo

Bostic: Who had ultimate say over what outcomes had been reported within the demo? Edlin: Daniel did and Elizabeth did.

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Erin Woo

Bostic: Was a part of {that a} want to point out that the know-how carried out properly? Edlin: Sure. Bostic: How is that this objective served by hiding errors? Edlin: I don’t know. Bostic: What about withholding outcomes? Edlin: I don’t know.

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Erin Woo

Fast-fire questioning from Bostic simply now. Edlin: The aim of the tech demonstrations was to “showcase or show the Theranos know-how. In some instances, checks had been run. In others, checks weren’t run. On the whole, to point out the performance of the Theranos know-how.”

Erin Woo headshot

 

Erin Woo

Again from break, and Bostic says he has round 30 minutes left of cross-examination. Downey says that we’ll end with Edlin at the moment. We’re now taking a look at a doc relating to the Restricted Goal Experiment with the U.S. Central Command, which Edlin testified once more didn’t happen. Completion of this examine was a prerequisite to scientific use of Theranos units by the army, Edlin confirms.

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Erin Woo

Downey wraps cross, and Bostic is again for redirect. We’re beginning with the connection with the army. Bostic notes that solely 28 individuals participated within the burn examine. Edlin additionally doubles down on his earlier testimony that the army by no means used Theranos units on troopers.

Erin Woo headshot

 

Erin Woo

Taking a look at one other electronic mail in regards to the brochure for Walgreens, the place Christian Holmes is relaying suggestions from Elizabeth. All through cross, Downey has introduced up emails/situations the place Elizabeth has advocated for transparency and disclosure to counteract what we noticed in direct.

Erin Woo headshot

 

Erin Woo

Again from break and taking a look at a presentation Edlin helped put together for an investor. In an electronic mail questioning the accuracy of a declare in a single graph, Holmes wrote: “In the event that they at the moment do refrigerate then we should always replicate that so we’re making an correct declare.”

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Erin Woo

Downey is attempting to determine that using the demo app, introduced up by the federal government, isn’t misleading/malicious, declaring that somebody might present up and never get their blood drawn and that there have been totally different protocols for various eventualities.

Erin Woo headshot

 

Erin Woo

Downey is discussing the demo app, which as proven earlier than shields failures from the affected person. “You weren’t attempting to deceive anybody on this demo course of, right? And also you didn’t perceive that anybody else at Theranos was attempting to deceive anybody on this course of?” Edlin agrees.

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Erin Woo

Shifting matters to demos, after round an hour of questioning about Theranos’s army relationship. Round 10-15 individuals labored on the crew to do demos, with Daniel Younger reviewing and approving all demos, Edlin testifies.

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Erin Woo

Givens wrote that the machine “appeared to operate properly within the setting,” and her solely criticism was the touch-screen. She wrote that she hoped to get funding for a full proposal.

Erin Woo headshot

 

Erin Woo

Downey is mentioning emails from Melissa Givens of U.S. Africa Command and former Theranos V.P. Daniel Younger indicating that the system carried out properly in excessive temperatures in Africa. Yesterday, the federal government confirmed proof saying that the units couldn’t function over 82 levels.

Erin Woo headshot

 

Erin Woo

Good morning from San Jose! Daniel Edlin is again on the stand. We’re nonetheless anticipating former Pfizer diagnostics director Shane Weber subsequent.

Erin Woo headshot

 

Erin Woo

We’re breaking for the day. I’ll be again tomorrow at 9 a.m. for extra of Edlin’s cross-examination.

Erin Woo headshot

 

Erin Woo

Downey asks Edlin a sequence of questions round whether or not he ever took steps to place ahead any declare he knew to be false. Edlin says repeatedly that he didn’t. “That info was reliant on info you had gotten from scientists within the firm, right?” “Sure.”

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Erin Woo

Downey began by having Edlin affirm that he was not a tech skilled — Edlin majored in public coverage at Duke.

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Erin Woo

And — protection adjustments the topic utterly. We’re again to speaking about Theranos’s know-how as we start cross-examination.

Erin Woo headshot

 

Erin Woo

With that, we’re via with direct and onto cross. Testimony is scheduled to finish at Three at the moment, so Edlin will probably proceed tomorrow.

Erin Woo headshot

 

Erin Woo

Edlin stated he was in conferences the place Balwani stated he would defer to Holmes. “Typically, she was the C.E.O., so she had the ultimate decision-making authority.” Edlin stated he noticed them disagree about “sure matters.” After they disagreed, Edlin says there wasn’t at all times a call that was made. He noticed occasions when Balwani would defer to Holmes however can’t recall the reverse.

Erin Woo headshot

 

Erin Woo

Again from break. Bostic is pivoting to what Edlin noticed of Holmes and Balwani working collectively. Holmes and Balwani had workplaces subsequent to one another with glass partitions. They usually ate lunch collectively and had been in dialogue collectively, he stated, however nothing else stands out.

Erin Woo headshot

 

Erin Woo

We’re going via slides authorized by Holmes and despatched to the army for a 2012 burn examine. After many claims, Bostic asks Edlin whether or not he knew on the time whether or not this was true or not. Edlin says repeatedly he didn’t know, however he had no motive to doubt it. One exception: One bullet learn that almost all outcomes might be obtained in lower than 20 minutes, however Edlin testified that demo run occasions had been normally longer than 20 minutes.

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Erin Woo

Within the doc: “Theranos has created a point-of-service laboratory infrastructure that generates real-time information from a finger-stick of blood or different micro-volumes of various pattern sorts delivering increased high quality information than beforehand doable.” Additionally: “Every Theranos system can run each take a look at at the moment accessible via the standard centralized or hospital laboratory infrastructure.” Edlin testifies: “I had no motive to imagine it wasn’t true.”

Erin Woo headshot

 

Erin Woo

We at the moment are taking a look at a doc that was despatched to Main Steven Cook dinner. “Every part on this doc was reviewed and authorized by Elizabeth,” Edlin testifies. Holmes was extremely concerned in each dialogue/electronic mail communication he had with the army, he says.

Erin Woo headshot

 

Erin Woo

Switching matters to Theranos’s interactions with the army. Edlin helped help Theranos’s army and D.O.D. relationships. “The tip objective for these communications was to arrange a analysis program that might evaluate Theranos testing to the testing accessible to the army.”

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Erin Woo

Edlin testifies that he doesn’t bear in mind Holmes asking him to take out language like this from investor binders, and says that he remembers shows like this being despatched to different traders as properly.

Erin Woo headshot

 

Erin Woo

Beneath the heading “Identical Assessments, a Complete New Strategy”: “The actionable info you want, 1/1000 the scale of a typical blood draw.” This web page additionally says “the best ranges of accuracy and precision.” Theranos’s lawyer flagged this language at the side of the web site.

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Erin Woo

Included in a binder despatched to Rupert Murdoch: “Theranos’s proprietary, patented know-how runs complete blood checks from a finger-stick and checks from micro-samples of different matrices, and generates considerably increased integrity information than at the moment doable.”

Erin Woo headshot

 

Erin Woo

Edlin testifies that he would put together binders for traders. “Elizabeth requested to assessment them and as soon as they had been reviewed and authorized … I might ship them to traders,” he stated.

Erin Woo headshot

 

Erin Woo

Bostic exhibits Edlin the purported Pfizer/Theranos examine report, however Edlin doesn’t know who created it or put the emblem there, he testified.

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Erin Woo

The advertising and marketing on Theranos’s draft web site included “a tiny drop is all it takes” and “highest degree of accuracy.” In a four-page electronic mail, Theranos lawyer Kate Beardsley raised accuracy questions on a few of this advertising and marketing, in some instances asking for substantiation or suggesting adjustments (i.e., “full vary” to “broad vary,” “highest high quality” to “prime quality”).

Erin Woo headshot

 

Erin Woo

Edlin testifies that Holmes was “very concerned and detail-oriented” in reviewing and approving Theranos’s advertising and marketing. “For the tip product, and for what truly went onto the web site, she did assessment that.”

Erin Woo headshot

 

Erin Woo

Dec. 27, 2015, electronic mail from Holmes relating to a “VIP visitor”: “You may say we do run these assays, however weren’t capable of run them on this pattern, apparently attributable to a human error in pattern dealing with.” Nevertheless: We simply noticed an electronic mail from a Theranos scientist saying it was not human error. This electronic mail was with reference to a Forbes author who deliberate on writing about his expertise.

Erin Woo headshot

 

Erin Woo

Concerning these outcomes: Bostic enters a Jan. 7 electronic mail from Tina Lin to Edlin, noting some points with the outcomes (some excessive, some low). “We’ve got no pattern for rerun because it was a brief draw,” she wrote. Theranos started testing in wellness facilities over a 12 months in the past, Bostic notes.

Erin Woo headshot

 

Erin Woo

Leaping forward to the Murdoch funding. Jan. 6, 2015, from Holmes: “I [sic] can be an honor to have you ever be a part of our firm.” Jan. 7 from Murdoch: “Thanks, Elizabeth. Loved each minute of it. Any blood outcomes? See you quickly, Rupert”

Erin Woo headshot

 

Erin Woo

E mail from Edlin: “Sadly by the seems of the Thyroid panel outcomes under it seems to have had main points once more.” Balwani: “To say that is deeply disappointing shall be a gross below assertion.” This was a couple of month earlier than the general public launch, Edlin testifies.

Erin Woo headshot

 

Erin Woo

We’ve spent the morning to date taking a look at totally different electronic mail chains through which Daniel Younger instructed Edlin to vary or take away irregular take a look at outcomes from demo experiences. Holmes has been included on many of those emails.

Erin Woo headshot

 

Erin Woo

The jury is seated, and Daniel Edlin is again on the stand. We’re beginning once more with a recap of Theranos demos. Final Friday, we mentioned how they used the “demo app,” which shielded system failures from view, or the “null protocol,” which wouldn’t truly analyze the pattern.

Erin Woo headshot

 

Erin Woo

Good morning! I’m within the courtroom in San Jose. We’re beginning with Daniel Edlin, a former senior product supervisor at Theranos (and faculty buddy of Christian Holmes). Based mostly on pretrial arguments, we’ll have former Pfizer diagnostics director Shane Weber subsequent.

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Erin Woo

With that, we’re breaking for the weekend. We’ll decide up with Edlin on Tuesday.

Erin Woo headshot

 

Erin Woo

We’re taking a look at an electronic mail chain between Edlin, Daniel Younger, Michael Craig and others, making ready for a tech demonstration. They resolve to go along with the demo app, which “shields protocol failures from the shopper,” Craig wrote. If an error had taken place, it wouldn’t present on the display screen that an error had taken place. It could say working or processing, Edlin stated.

Erin Woo headshot

 

Erin Woo

Edlin performed trainings for Walgreens workers and would give excursions round Theranos. “Upfront of the tour, there have been some areas of the labs that had been hidden by a partition” to hide Theranos units, Edlin testifies.

Erin Woo headshot

 

Erin Woo

Edlin was conscious on the time of Theranos utilizing modified third-party units to run venous attracts however didn’t know the third-party units had been used for fingerstick attracts till 2016.

Erin Woo headshot

 

Erin Woo

Edlin labored on the “front-end buyer expertise” for the Walgreens partnership, together with the shop’s branding and advertising and marketing in addition to software program utilized by sufferers and technicians. Edlin testifies that he was acquainted with the Edison machines (3.zero and three.5), the MiniLab, and the Edison Four sequence (the next-gen model of the Theranos units). The subsequent-gen variations had been by no means used for scientific affected person testing, he testifies.

Erin Woo headshot

 

Erin Woo

To this point, Edlin has testified about Holmes’s work habits — she was within the workplace “on a regular basis,” from early morning to late night and on weekends — and about how info was saved siloed inside Theranos, on directions from Elizabeth, Christian and Sunny.

Erin Woo headshot

 

Erin Woo

Edlin was recruited to Theranos by Christian Holmes, who Edlin describes as “one in every of my closest buddies.” He first met Elizabeth Holmes via Christian whereas Edlin and Christian had been at Duke.

Erin Woo headshot

 

Erin Woo

Daniel Edlin, a former senior venture supervisor at Theranos from 2011 to 2016 who labored instantly with Holmes, is on the stand.

Erin Woo headshot

 

Erin Woo

After a break, we’re again in session. There could also be extra disruptions coming as much as the trial schedule: A juror’s mother-in-law handed away abruptly and she or he might should journey to the Midwest, and a buddy of Davila’s is critically ailing.

Erin Woo headshot

 

Erin Woo

Redirect is finished, and we’re again to re-cross. After some backwards and forwards on Dhawan’s assumptions that Theranos workers had been doing their jobs, Dhawan has been excused.

Erin Woo headshot

 

Erin Woo

The federal government is asking about Lynette Sawyer. Dhawan says he didn’t meet Sawyer and doesn’t know whether or not she went into the lab or noticed the Edison. On the whole, the federal government is working to point out that Wade’s line of questioning relied on assumptions.

Erin Woo headshot

 

Erin Woo

We’re via cross and into redirect. Wade’s cross-examination stayed on the identical theme: that Theranos had loads of certified workers, and Dhawan’s minimal presence within the lab wasn’t a priority.

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Erin Woo

Wade is declaring that Dhawan, as a part-time worker, delegated his obligations to totally different full-time Theranos workers. “Nobody was pretending you had been there each day,” Wade continued. “You had been there as wanted, proper?”

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Erin Woo

Lance Wade is beginning with dialogue of Dr. Lynette Sawyer, who additionally served as a part-time lab director throughout this time. Dr. Sawyer didn’t come up throughout direct yesterday — Wade appears to be arguing that Dhawan didn’t do a lot as a result of Sawyer was dealing with extra of it.

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Erin Woo

After a juror overslept, we’re lastly beginning testimony in “Our Holmes Matter” in San Jose. We’re beginning once more with Dr. Sunil Dhawan, who grew to become lab director after Adam Rosendorff left.

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Erin Griffith

Movement to compel is denied, Parloff is just not required to show over his notes. Choose stated it doesn’t even should get into the difficulty of reporter’s privilege as a result of the protection hasn’t made a robust sufficient case for it. “It’s a fishing expedition.”

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Erin Woo

We’re wrapping for the day. I’ll be again within the courthouse at 9 a.m. tomorrow when the trial resumes.

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Erin Griffith

Parloff counsel David Korzenik: “The trial is just not about Mr. Parloff’s mind-set. It’s not a libel case towards his subsequent article through which he corrected his first.” “He can solely testify as to what Ms Holmes instructed him.”

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Erin Woo

Wade is asking about Dhawan’s interactions with Holmes and Balwani. Wade says that Balwani was working the laboratory from an operational standpoint. Dhawan says he can’t touch upon that, however his assumption was that he was.

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Erin Woo

With 15 minutes to go at the moment, we’re beginning in on cross-examination. Wade (who spent days on the stand cross-examining Rosendorff) is begins by establishing that Dhawan is a extremely educated skilled.

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Erin Woo

Dhawan says he doesn’t recall ever asking questions or asking a report back to be modified. He additionally signed a doc about reporting of essential values with out ever seeing a essential worth.

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Erin Woo

Rosendorff had signed the paperwork earlier than Dhawan did. “It gave me some reassurance that there had been some supervision earlier than my time of arrival,” Dhawan testified. Dhawan signed the validation for the Edison with out ever seeing it run something.

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Erin Griffith

Additionally, “We wish to present the knowledge he was pointed to. It doesn’t matter if it seems to be right or incorrect.”

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Erin Griffith

Onto the Parloff matter. Cline says the Holmes camp desires to Parloff’s reporting notes with a purpose to present that Parloff “was coloured by bias — a want in charge any errors he made in his preliminary article on Ms. Holmes fairly than” his personal errors. Wow.

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Erin Griffith

The Justice of the Peace decide grants movement for the exclusion. “He’s testifying as to secondary issues. He’s reporting and testifying about one thing another person stated or did that he lined. He actually is akin to an skilled witness who has collected info from many sources.” Carreyrou is now allowed to be within the courtroom.

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Erin Woo

The Q.C. supervisor, Langly Gee, launched himself to Dhawan in August 2015. He wished Dhawan there for the CMS audit on 9/22/15. Dhawan stated he was there for the audit. Earlier than that, he stated he signed “no matter was despatched to me.”

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Erin Woo

Dhawan didn’t go to Theranos each day. He went to Theranos twice. He didn’t work together with sufferers, physicians or Theranos lab workers. He by no means handled Q.C. He thinks he labored 5-10 whole hours from November 2014 to June 2015. For this, Dhawan was getting paid $5,000 a month.

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Erin Griffith

Cline: “I perceive this can be a hardship for Mr. Carreyrou. He’s not the one one struggling a hardship. Ms. Holmes’s father is a witness. We might name him. He’s having to overlook the trial of his daughter.”

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Erin Griffith

Prosecution notes that it already introduced a movement to dam any arguments that there was coordination between the federal government and Carreyrou. Says there isn’t a proof of that and that Choose Davila already agreed to dam such arguments.

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Erin Griffith

Will the Holmes camp name Carreyrou as a witness? Holmes lawyer John Cline: “I can’t inform you at this level who we’re going to name as witnesses. We might. We might not placed on a case. We might name Ms. Holmes. … I can actually inform you we might name him.”

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Erin Woo

As anticipated, we at the moment are calling Dr. Sunil Dhawan, a dermatologist who grew to become Theranos’s lab director after Rosendorff left. After a number of days on Theranos’s partnerships with different firms (Safeway, Walgreens), we’re now again to inner Theranos workings.

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Erin Woo

After temporary re-cross from Downey, Jhaveri is excused.

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Erin Griffith

He provides that any subpoena issued to Carreyrou can be in dangerous religion or harassing. One instance: “Ms. Holmes main her workers in a chant that claims F You, Carreyrou. Clearly I’m abbreviating that.”

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Erin Griffith

Carreyrou lawyer: “We imagine he’s being singled out due to his prior reporting and due to the animus Ms. Holmes has for him.” Lawyer additionally says it’s a matter of First Modification rights.

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Erin Woo

Schenk is up for redirect. He notes that the affected person expertise surveys had been earlier than they received their take a look at outcomes, so in the event that they, for instance, had been instructed they weren’t pregnant however had been actually pregnant, that might have an effect on their expertise however wouldn’t be counted in survey outcomes.

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Erin Griffith

Choose: “I’ve not been following Mr. Carreyrou’s podcast, however as I perceive it he’s been capable of report on what’s occurring and touch upon what’s occurring.” Choose asks what’s the issue?

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Erin Griffith

On the Carreyrou matter, the Justice of the Peace decide advised that he be categorized as an skilled witness, “a practical resolution,” he stated. Holmes aspect stated (understandably?) that that doesn’t make a whole lot of sense.

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Erin Griffith

Protection has tried to compel Parloff to launch his notes. A few of them (outdated emails) now not exist. However others would contain forcing him to show over notes and sourcing, and so on. He already offered some recordings of interviews to either side however is combating the subpoena for notes.

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Erin Griffith

They’re additionally going to be coping with the motions involving Roger Parloff, who wrote a Fortune cowl story that’s actually being mentioned in trial at this second.

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Erin Griffith

Whereas testimony is going on, there’s additionally a separate Zoom listening to now with a Justice of the Peace decide, Nathanael Cousins, over whether or not the journalist John Carreyrou shall be allowed within the courtroom.

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Erin Woo

Taking a look at a January 2015 affected person expertise survey abstract. Sufferers rated the general expertise as 4.81/5 — extra help for Downey’s line of argument right here.

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Erin Woo

On the whole, Downey appears to be taking a really affordable, pleasant tone with this cross-examination (in distinction, for instance, with the best way Wade began off cross with Rosendorff two weeks in the past). Details: opening shops is difficult, however sufferers had been completely satisfied.

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Erin Woo

Downey is de facto attempting to focus on affected person satisfaction to point out that the partnership was successful. Jhaveri pushes again, saying that affected person expertise was one essential issue, however so was price of build-out, venous draw percentages, and so on. Jhaveri does concede that he doesn’t bear in mind getting adverse suggestions in regards to the checks being achieved in venous draw type.

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Erin Woo

Different paperwork confirmed that Walgreens didn’t embody venous draw percentages amongst “key program dangers” and that Jhaveri instructed Walgreens colleagues to not talk about future market growth plans exterior California and Arizona.

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Erin Woo

Downey highlights paperwork that make the case that the partnership was doing higher than the federal government painted it as. We noticed a set of Walgreens/Theranos assembly minutes saying that affected person expertise surveys had been “off the charts.”

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Erin Woo

Downey establishes that Jhaveri had little or no contact w Holmes; Jhaveri says he met together with her “two or 3 times at most.” (His fundamental level of contact was Balwani.)

Erin Woo headshot

 

Erin Woo

Again from break. Downey is beginning cross with questions on how opening shops is a tough job.

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Erin Woo

After studying the texts, the federal government completed its direct examination of Jhaveri. We’ll decide up with cross after the break.

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Erin Woo

Right here’s the total doc with 36 pages of texts: https://www.documentcloud.org/paperwork/21081045-holmes-balwani-texts

Erin Woo headshot

 

Erin Woo

Textual content messages between Holmes and Balwani about Walgreens! Jhaveri and Schenk are, for no matter motive, taking turns doing a dwell studying. (Jhaveri is Balwani; Schenk is Holmes. This does certainly really feel sort of like highschool English class.)

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Erin Woo

In 2015, venous draw percentages by no means went down sufficient to develop past 40 shops in Arizona and one in Palo Alto. Balwani’s clarification for the odds by no means modified. Then, in late 2015, Jhaveri testifies, he learn a adverse article about Theranos. Walgreens stopped providing Theranos checks in 2016.

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Erin Woo

Normal theme of Jhaveri’s testimony to this point: Theranos wasn’t hitting its targets relating to venous draw percentages, however Jhaveri was prepared to maintain working with them. However, the federal government notes: What Jhaveri didn’t know was that Theranos was not doing testing by itself units.

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Erin Woo

8/15/2014 electronic mail from Jhaveri, the place he wrote that “now we have made unbelievable progress within the quick 5 months.” Jhaveri nonetheless believed that Theranos was doing testing by itself units, he testifies. In the identical electronic mail, Jhaveri wrote that he desires to deal with enhancing affected person expertise and “venous p.c within the 10% vary.” At that time, it was nonetheless round 40%.

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Erin Woo

Now taking a look at revised objectives from August for the Theranos partnership. For F.Y. 2015, they had been now aiming for 200 shops as a substitute of 500, based mostly on the outcomes of the pilot. The venous draw percentages and the price of the buildout had been two causes for the lowered objectives, Jhaveri testifies.

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Erin Woo

In June 2014, Jhaveri nonetheless thought that Theranos was doing its testing on Theranos units. He didn’t know that Theranos was testing sufferers’ blood on modified third-party units. And nobody, together with Balwani, was happy with the venous draw percentages.

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Erin Woo

When Theranos did a finger stick draw, Walgreens thought that blood was being examined on a Theranos system. Walgreens didn’t realize it was being examined on a modified industrial system, Jhaveri testifies.

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Erin Woo

Walgreens agreed that some, extra advanced checks would possibly at all times require venous attracts, however these checks had been presupposed to be much less frequent. A slide attributes the “increased variety of venous attracts to date” to “studying course of round ordering patterns for Arizona,” not tech issues.

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Erin Woo

The share of finger stick attracts was “crucial,” Jhaveri testifies. “That was the Theranos know-how that we had signed a partnership on. … That was the precise magic that was so intriguing to us.”

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Erin Woo

Sufferers might obtain conventional lab work through venous or finger stick take a look at. Historically, labs would do venous attracts. Theranos, as we all know, promised to do the identical checks on a small quantity of blood via a finger stick, which Jhaveri calls “extraordinary.”

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Erin Woo

On the time, Theranos was in a single retailer in Palo Alto and two in Arizona. They had been monitoring prospects’ wait time and expertise degree. They had been additionally monitoring some lab measures, together with proportions of venous vs. finger stick checks.

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Erin Woo

Jhaveri was working to “operationalize” the Theranos partnership — increasing the partnership from the three shops it was in on the time. This included development, design, structure, coaching, buyer expertise.

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Erin Woo

In early 2014, he grew to become divisional vp of well being care providers, and the Theranos partnership grew to become a part of his obligations presently.

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Erin Woo

He re-engaged with the Theranos crew on the finish of 2013. At that time, he was nonetheless engaged on the brand new pharmacy design and wished to determine how the Theranos partnership would match into the expertise/development of the shop.

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Erin Woo

He first heard of Theranos in 2010, when he was main a venture to revamp Walgreens pharmacies to be extra customer-centric. He met Holmes and Balwani when he gave them a brief tour of a Walgreens retailer.

Erin Woo headshot

 

Erin Woo

Jhaveri labored at Walgreens for 29 years (1989-2018). He’s a registered pharmacist with an MBA in organizational administration.

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Erin Woo

We’re achieved with direct examination. On cross (which takes roughly one minute), the protection establishes that Amenta didn’t have particular data of the wire transfers past figuring out that they occurred. And we at the moment are achieved with Amenta and onto Jhaveri.

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Erin Woo

Prosecutor John Bostic is taking Amenta via federal wire transfers despatched to Theranos, presumably to point out that wire transfers had been made.

Erin Woo headshot

 

Erin Woo

Jurors have filed in. Amenta is on the stand.

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Erin Woo

Again within the courtroom for a particular Thursday version of the Elizabeth Holmes trial! In the present day’s anticipated witnesses: Robert Amenta, deputy chief investigator on the Federal Reserve Financial institution of New York; Nimesh Jhaveri, a former Walgreens govt; and Dr. Sunil Dhawan, a former Theranos lab director.

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Erin Griffith

That’s it for at the moment. There shall be trial tomorrow and one of many witnesses shall be Nimesh Jhaveri, former head of well being care providers at Walgreens.

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Erin Griffith

The subsequent witness is Robert Amenta, deputy chief investigator on the New York Federal Reserve. We simply walked via a proof of what the Fed does. U.S. Legal professional John Bostic: “So it’s a financial institution for banks.”

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Erin Griffith

In 2015, after the WSJ Theranos expose, Miquelon wrote an electronic mail to Holmes: “You might be in my ideas, hold in there. The haters are all over the place however your contribution to the world can’t be bottled up.”

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Erin Griffith

Protection makes the case that Walgreens entered into its settlement with Theranos figuring out it didn’t have F.D.A. approval. Walgreens had the correct to terminate the partnership if Theranos didn’t get F.D.A. approval by the tip of 2010. (It didn’t, and Walgreens didn’t terminate.)

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Erin Griffith

On diligence, Miquelon says: “I might outline diligence as unfolding over a few years — diligence continues and that’s one motive why you may have a revised settlement and addendums to that.”

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Erin Griffith

Downy made the purpose that most of the guarantees Holmes made about Theranos’s know-how had been made when the corporate deliberate to place machines in shops. Concept being that these guarantees are irrelevant as a result of Theranos determined to not put machines in shops, however take a look at in its personal lab.

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Erin Griffith

On cross-exam, Holmes lawyer Kevin Downey is build up how huge of a deal this effort was to Walgreens. Miquelon stated Walgreens employed a agency to provide you with an inventory of 180 start-ups engaged on lab improvement, which the corporate evaluated.

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Erin Griffith

The price hinged on the partnership hitting sure milestones, however in August 2013, Holmes emailed Walgreens asking to speed up the fee and ship the cash sooner.

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Erin Griffith

WOW this is perhaps public data however I wasn’t conscious of it. Walgreens paid a $100 million “innovation price” to Theranos for the privilege of partnering with them. The precise funding in fairness solely got here within the type of a $40 million convertible word.

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Erin Griffith

🩸 After a two-hour delay attributable to jurors elevating points about their questionnaires being made public, testimony within the Elizabeth Holmes trial (or, per the decide, “Our Holmes Matter”) is starting with Wade Miquelon, former C.F.O. of Walgreens.

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Erin Griffith

Miquelon describes the artwork of credibility buying and selling — in an electronic mail promoting Theranos to his colleagues he notes Larry Ellison’s endorsement. The prosecutors additionally make the purpose that Theranos was seven years alongside — pre-empting the “only a younger start-up” protection.

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Erin Griffith

We’ve seen a number of paperwork from pharma firms endorsing or validating Theranos’s know-how. I imagine these are the identical ones we noticed within the opening arguments, which had been a fairly large smoking gun. The testimony hasn’t but mentioned whether or not they had been falsified.

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Erin Griffith

Miquelon provides a really acquainted story by now: He was excited by the promise of Theranos’s know-how. Numerous low cost checks on a finger stick of blood. We additionally know by now that witnesses have to be very particular in regards to the claims Holmes made as a result of protection will decide them aside.

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Erin Griffith

The subsequent witness is the previous Walgreens C.F.O. Wade Miquelon (now C.E.O. of Jo-Ann Shops).

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Erin Griffith

Burd attracts the road at income and profitability. “In case you’re hitting sturdy income {dollars} relative to dimension and also you’re being profitable, I might say you’re in your method.” (If they’d requested me, I might have outlined a start-up as a non-public venture-capital backed firm.)

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Erin Griffith

On redirect we talk about the definition of a start-up, rebutting protection’s declare that Theranos was only a tiny upstart coping with a giant dangerous company. “Do you differentiate between a start-up that’s 7-10 years outdated vs one that’s simply beginning out of a storage?”

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Erin Griffith

Downey attempting to make the case that Safeway’s inventory had had a giant drop between previous to Burd leaving. He doesn’t take that bait. “In 20 years, that occurs regularly.”

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Erin Griffith

We commute over the Theranos lab arrange as a take a look at on Safeway’s company campus. Burd was pissed off that it was presupposed to have a “field,” one in every of Theranos’s blood analyzers, however for “secrecy” causes, didn’t get one. Ultimately it was shut down.

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Erin Griffith

Downey has grilled Burd on the authorized particulars of their partnership that gave Safeway exclusivity rights, paybacks, and so on. on whether or not there was ever a tough deadline given for the launch.

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Erin Griffith

A number of deal with the diligence that Safeway did on Theranos and its know-how. Burd spoke with numerous docs and lab administrators at Johns Hopkins, who stated they’d not had the Theranos machines lengthy sufficient to validate them. “The field was taken again by Theranos.”

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Erin Griffith

Kevin Downey, Holmes’s lawyer, is now cross-examining Burd. Build up all his expertise, experience, sophistication, and so on., to check with Holmes and Theranos. “You knew on the time that she was a really younger entrepreneur. … And also you knew the corporate was a start-up?”

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Erin Griffith

Simply electronic mail after electronic mail from Burd to Holmes expressing disappointment. “We’re so good collectively after we collaborate, however I’ve by no means been extra pissed off. I wish to assist, however you’re making it tough.”

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Erin Griffith

Burd emailed Holmes: “I can recall getting discouraged as soon as is (sic) the final 61 years. That stated I get near my second occasion.” Do C.E.O.s at all times electronic mail one another this manner?

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Erin Griffith

Burd emailed Holmes complaining about delays on launching Theranos checks inside Safeway shops. “I really feel like a jogger working in place ready for the cease mild to show inexperienced.” One other electronic mail has the topic line “Turning into Discouraged.”

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Erin Griffith

Burd emailed Holmes in 2012 expressing considerations a couple of Theranos lab on Safeway’s campus. “I’m genuinely involved that Safeway’s lab status will get worse by the day.” He warned that if the issues continued for the comfortable launch, “each our manufacturers shall be in danger.”

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Erin Griffith

The decide known as the case “Our Holmes Matter” which I’m going to start out utilizing. Steve Burd, the previous C.E.O. of Safeway, is again on the stand for direct examination.

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Erin Griffith

🩸 In court docket once more for U.S. vs. Holmes.

Erin Griffith headshot

 

Erin Griffith

Thus concludes the Theranos trial motion for the week. The trial is on recess on Friday, shall be again on Tuesday.

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Erin Griffith

He continues: “I’ve had the privilege of assembly 4 U.S. presidents. When the president is within the room — let me inform you, the president owns the room. Nobody talks except spoken to. Her model was heat, it was pleasant. It wasn’t dictatorial.”

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Erin Griffith

Burd is very complimentary of Holmes. “Not all C.E.O.s are alike. She would rise to the highest of the pile when it comes to imaginative and prescient, when it comes to command of the knowledge, clearly when it comes to supply. She was at all times decisive.” “At any time when she was speaking she owned the room.”

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Erin Griffith

Safeway initially negotiated an $85 million partnership with Theranos, together with investing $30 million to put in labs in its shops, which he stated turned out to be a low estimate. The deal was negotiated instantly with Holmes with no attorneys, which Burd discovered was uncommon.

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Erin Griffith

Now discussing convertible fairness notes! Isn’t that is a lot extra enjoyable than chemiluminescence and assays. 📈

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Erin Griffith

Ooooooooh I feel we simply received our first point out of EBITDA within the trial, I can see the fun of studying about accounting on the faces of those jurors.

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Erin Griffith

For some motive he’s speaking a couple of pressure of watermelon known as a Pureheart that has a really small rind that Safeway bought completely for a 12 months. 🍉

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Erin Griffith

Rosendorff’s testimony is lastly over. Steve Burd, the C.E.O. of Safeway for 20 years till 2013, is now testifying. When he heard about Theranos he was “instantly inquisitive about assembly Theranos, notably the founder.” “It was an interesting idea.”

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Erin Griffith

Protection counsel Wade is nearly giddy to argue that prosecution requested Dr. Rosendorff to check points at Theranos to different labs he labored at. Protection ought to be allowed to deliver up different investigations at labs the Rosendorff later labored at, he says.

Choose Davila says no, that might be a separate “mini trial.” He provides, “I feel it could truly improve the harm you’re in search of to keep away from however, hey, it’s your case.”

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Erin Griffith

Concerning the accusation that he stole commerce secrets and techniques by emailing himself recordsdata, prosecution asks, “Based mostly on what you understand about Theranos’s strategies, would you may have wished different labs to make use of these strategies?” “No.”

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Erin Griffith

For the final hour we’ve been listening to redirect on Dr. Rosendorff. For these counting, that is Day 6 of his testimony. The explanation he left Theranos: “It was about affected person care and my integrity as a doctor.”

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Erin Griffith

Now the alternate has comparable considerations, saying English is just not her first language and is worried she “might make a mistake in one thing.” “It’s her future.” The decide doesn’t appear to be having this one.

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Erin Griffith

The juror stated she doesn’t imagine in punishment and has been more and more haunted by the considered having a task in sending somebody to jail. Not surprisingly, prosecution was in favor of dismissing her.

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Erin Griffith

I’m beginning to really feel like an Oompa Loompa watching the jurors drop out from the sidelines right here, possibly the press corps will put collectively slightly music and dance.

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Erin Griffith

💉 U.S. v. Holmes, Day 12 of ~2384972: We’ve got dismissed a juror who says her views as a Buddhist will make it inconceivable for her to vote to convict. Three of 5 alternates stay. Later at the moment Steven Burd, the previous C.E.O. of Safeway, will testify.

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Erin Griffith

QC failure, immulite reagents, clia lab, advia, HCG, PSC, assays, vacutainers, nanotainers, we’re nearing the tip of Day 5 of Dr. Rosendorff’s testimony and so very deep within the blood testing weeds please ship assist

Erin Griffith headshot

 

Erin Griffith

Choose Davila now says that protection has had 4 days to problem Rosendorff’s testimony and says “You may have challenged his confidence.” Permits protection to query about Rosendorff’s work post-Theranos, says to “probe frivolously” to keep away from legal responsibility or impeding his future profession.

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Erin Griffith

Attention-grabbing model of questioning asking the witness “You don’t recall these occasions whenever you lied and time and again?” “…No sir?”

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Erin Griffith

Rosendorff despatched himself a bunch of inner Theranos emails earlier than he left. Wade accuses him of stealing commerce secrets and techniques and violating HIPAA with affected person information.

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Erin Griffith

Wade continues to drive on the level that Dr. Rosendorff left Theranos for more cash and the rationale he expressed considerations about its lab outcomes and requested to be faraway from its Clia lab was to start out his new job sooner.

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Erin Griffith

Now Wade is attempting to make use of Rosendorff’s resignation electronic mail — the fakest electronic mail any worker ever writes — towards him. “You wrote that it was a ‘super expertise’ and also you ‘appreciated the chance to work with so many gifted people’” Gotcha!

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Erin Griffith

Wade is attempting to make a giant deal about how Dr. Rosendorff’s subsequent job after Theranos paid him extra. Dr. Rosendorff is just not having it. “I wished to affix a good firm whose mission I believed in.”

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Erin Griffith

Protection exhibits a résumé Rosendorff was sending round and factors out that he stated he did nice work at Theranos. Rosendorff: “I don’t know in the event you’ve ever tried to use for a job but it surely doesn’t serve you” to debate “fraudulent exercise.” Protection strikes his reply.

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Erin Griffith

Dr. Rosendorff was additionally taking a look at different jobs earlier than Theranos ever launched. Protection: “You primarily had a foot out the door the entire time?” “Occasionally I might have a look at what different jobs had been accessible.”

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Erin Griffith

Again from a break. Protection asking Dr. Rosendorff about his departure from Theranos. Protection factors out that Rosendorff was contemplating submitting a qui tam lawsuit towards Theranos, to alert the federal government of wrongdoing (and get a p.c of the cash recovered).

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Erin Griffith

Protection counsel Wade reads from a deposition through which Rosendorff seems to contradict his testimony in regards to the frequency of issues at Theranos labs. “Issues come up in labs — each lab in America, in all probability each lab on the planet — is just not going to good, right?” “Sure”

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Erin Griffith

Binder hijinks. Whereas flipping via all the assorted emails Rosendorff asks somebody to assist him with the binder as a result of “it’s simply opened up and it’s simply [hand wave motion] pages all over the place.”

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Erin Griffith

Within the meantime Roger Parloff has filed a declaration opposing protection’s push to compel him to show over his notes in reporting the 2014 Fortune cowl story about Holmes and Theranos. He already offered either side recordings of his on-record interviews with Holmes and Balwani.

Erin Griffith headshot

 

Erin Griffith

Rosendorff takes off his glasses and rubs his eyes as Wade cycles via numerous varieties displaying his signoff on assay validation from 2013.

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Erin Griffith

The meant takeaway from the road of questioning, so far as I can inform, is that some checks at Theranos sooner or later did work and that when there have been issues, many individuals at Theranos tried to repair them.

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Erin Griffith

Lance Wade, protection counsel, has resumed his aggressive questioning of Dr. Rosendorff, getting deeply into the weeds on his function in setting Theranos’s lab insurance policies and QC testing with numerous emails.

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Erin Griffith

Choose Davila responds with a lightweight dig towards protection: “A few blue fits sitting subsequent to them in a decide’s chambers, what might be intimidating about that?” 👔

Erin Griffith headshot

 

Erin Griffith

A media coalition (together with NYT) has argued to unseal the juror questionnaires since we had little visibility into the ultimate choice course of. The decide plans to privately query every juror about what they could wish to redact and protection says they wish to be there, to which the decide responds that that might be unnecessarily intimidating. Protection disagrees.

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Erin Griffith

Choose Davila stated a journalist contacted a health care provider who contacted the court docket clerk to level out that one of many protection’s displays included a affected person’s actual title, which is a HIPAA violation.

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Erin Griffith

Holmes is right here after all with Billy Evans, her mother and an older man I can’t ID. Earlier than the jury arrives, the attorneys are arguing about whether or not they can talk about issues at firms that Dr. Rosendorff labored for after Theranos.

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Erin Griffith

🩸 Again within the courtroom for U.S. v. Holmes. 🩸 The clerk is checking courtroom tickets after just a few ebook golf equipment confirmed up final week. Cross-examination of ex-lab director Adam Rosendorff continues.

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Erin Woo

With that, we’re breaking for the weekend. Courtroom will resume on Tuesday.

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Erin Woo

The federal government asks how lengthy Wade goes to take with cross-examination, provided that they’ve out-of-state witnesses they wish to name subsequent. Wade says he expects it’ll take all day Tuesday. (As a reminder, the general public doesn’t usually get info on what witnesses are coming subsequent.)

Erin Woo headshot

 

Erin Woo

7/19/14 electronic mail from Rosendorff to Balwani defending Theranos’s checks in response to doctor complaints. “I used to be emphatic with Dr. Chen about our rigorous validation and high quality course of,” Rosendorff wrote. He testifies that he believed this on the time.

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Erin Woo

With 5 minutes left earlier than we’re scheduled to interrupt for the weekend, we at the moment are discussing customer support. Rosendorff notes that by the point complaints had been escalated to him, they had been normally severe points.

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Erin Woo

Wade actually hammering house this level on outlier removing (which is sensible — that is one thing that got here up lots in earlier testimony for instance of Theranos manipulating outcomes).

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Erin Woo

Wade is urgent Rosendorff to say he authorized of this. “I believed it was uncommon,” Rosendorff stated. After reminding Rosendorff of what he stated in his deposition, Rosendorff concedes that he authorized it.

Erin Woo headshot

 

Erin Woo

Now onto one thing known as the “six tip coverage,” the place there are six outcomes from one pattern. Two outcomes might be discarded, and also you common the opposite 4. Younger developed this course of. Rosendorff says there was no formal SOP about outlier detection.

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Erin Woo

6/4/14 electronic mail from Younger, saying that they’re holding the outcomes of a examine after talking with Rosendorff — presumably supporting Wade’s line that Rosendorff is now within the loop.

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Erin Woo

In a 6/4/14 electronic mail from Rosendorff, he wrote a HCG plan for Balwani and Younger which stated HCG ought to change to vacutainer attracts and run on immulite. Wade notes that Rosendorff is “within the loop now.”

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Erin Woo

Younger replies that he up to date Adam over the weekend and agrees that “they need to be working all choices by Adam.”

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Erin Woo

Taking a look at 6/3/14 electronic mail from Balwani to Younger: “Adam got here by my workplace EXTREMELY pissed off that as a lab director he isn’t being saved within the loop.” “This info has to undergo him. … Are you able to guys please contact base with Adam so he’s within the loop,” Balwani provides.

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Erin Woo

Wade asks if Rosendorff stands by his testimony that he didn’t meet with Holmes about HCG on this time interval. Rosendorff says sure.

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Erin Woo

5/30/14: electronic mail from Holmes’s assistant the place she writes that “Elizabeth has requested me to coordinate a CLIA assembly for this afternoon at Four p.m.”

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Erin Woo

Now seeing Holmes’ calendar for five/29/14, the place she has “assembly with Adam Rosendorff” listed. Rosendorff had testified that he had not met with Holmes.

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Erin Woo

We’re now constructing a timeline being proven to the jury about HCG points, together with numerous emails and displays.

Erin Woo headshot

 

Erin Woo

Wade had Rosendorff affirm that he testified Holmes was much less involved than he was in regards to the HCG points. Then, he confirmed a 4:45 p.m. electronic mail forwarded from Balwani to Holmes about HCG points. Holmes responded six minutes later, asking, “How did that occur?” Wade then strikes on.

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Erin Woo

We’re again from break and switching gears to speak about HCG, the being pregnant take a look at.

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Erin Woo

On 10/15/14, Balwani provides one other assembly, however Rosendorff’s response signifies that he doesn’t want the opposite assembly.

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Erin Woo

Wade now discussing how Daniel Younger despatched a draft Q.C. coverage forward of the assembly, though that was Rosendorff’s accountability. Wade additionally notes that there have been no restrictions on what Rosendorff might talk about through the assembly.

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Erin Woo

Wade can also be attempting to point out that Theranos DID take Rosendorff’s considerations significantly. On 10/9/14, Balwani emailed Rosendorff, organising a gathering to debate his considerations. Balwani tried to set it up for the following day, however Rosendorff requested for it to be delayed.

Erin Woo headshot

 

Erin Woo

In at the moment’s cross-examination, Wade appears to be attempting to poke holes in Rosendorff’s credibility — declaring occasions when he was sluggish to answer docs, and noting that there was an AAP in place for proficiency testing, opposite to the impression given in earlier testimony.

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Erin Woo

Wade asks if something was occurring to make Rosendorff sluggish to reply. Rosendorff: “I used to be changing into pissed off at my incapacity to clarify discrepant outcomes.” Wade presses him that he simply wanted to name the physician again.

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Erin Woo

We’re now seeing one other electronic mail from a health care provider saying he’s ready for a callback from Rosendorff. Wade makes the purpose that that is the second time every week had handed earlier than returning a health care provider’s name. Rosendorff says he had already spoken with him and didn’t understand one other name was wanted.

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Erin Woo

E mail from Rosendorff after speaking to the physician: The physician is “puzzled” in regards to the outcomes, however “the MD is extraordinarily optimistic and enthusiastic about Theranos and needs us to ‘crush Quest Diagnostics.’”

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Erin Woo

There’s a 10/10/14 electronic mail from a customer support rep to Christian Holmes a couple of affected person who redid her labs at Stanford and received very totally different outcomes.

Christian responds to say they’ll repeat the checks and loop Rosendorff in. Rosendorff was looped in as instructed, however now there’s a followup electronic mail to Rosendorff! Every week had passed by, and he hadn’t returned the cellphone name in regards to the affected person.

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Erin Woo

To this point this morning, Wade’s cross has consisted of going via electronic mail chains discussing proficiency testing, seemingly to determine that Theranos did have a rigorous proficiency testing protocol in place.

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Erin Woo

We’re beginning off with proficiency testing. Wade will get Rosendorff to agree that he did write a regular working coverage for an alternate evaluation protocol for proficiency testing.

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Erin Woo

Courtroom is in session for the fourth (!!) day of testimony by the previous Theranos lab director Adam Rosendorff. (That is the longest any witness has been on the stand to this point.)

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Erin Woo

There isn’t any redirect, and Sung has been dismissed. Courtroom is on recess till Friday.

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Erin Woo

The protection ended on the contract between Celgene and Theranos. Cline stated that all the “success milestones” had been achieved, and funds had been made, though Sung stated she didn’t have direct data of the fee.

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Erin Woo

John Cline is doing the cross-examination for the protection. He’s beginning by going again via the chronology we lined in direct.

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Erin Woo

And now we’re onto cross! This was a really quick direct examination.

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Erin Woo

Sung didn’t inform anybody that Celgene had comprehensively validated Theranos’s know-how.

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Erin Woo

4/2/12 electronic mail from Sung to Daniel Edlin, with Holmes and Younger copied. “We thought it will be nice to maintain her within the loop and conscious of ongoing actions,” Sung stated. The e-mail says Celgene “had determined to easily wait till your next-gen machines are prepared after which deploy them”

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Erin Woo

In additional dangerous information for Theranos, imply focus profiles weren’t constant between Theranos and QPS, and focus variability was increased with Theranos than with QPS technique. As soon as once more, Sung confirms that focus variability is undesirable.

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Erin Woo

We’re taking a look at a scatter plot displaying the vary the place Theranos checks ought to fall. Most of them … don’t fall inside this vary. 67% of samples had >25% distinction in serum focus between Theranos and QPS technique. “It’s not excellent news” for Theranos, Sung stated.

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Erin Woo

Theranos entire blood information confirmed extra fluctuations, which Sung stated was undesirable.

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Erin Woo

Theranos additionally had increased variability. Authorities requested if that was good or dangerous. Sung chuckled and replied: “Unhealthy.”

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Erin Woo

14.1% of Theranos samples didn’t have usable outcomes, in comparison with lower than 2% for QPS.

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Erin Woo

We are able to see a comparability between Theranos and QPS assays. Theranos solely used .25mL of blood in comparison with 2mL for QPS. Theranos additionally used entire blood fairly than serum, which Sung stated was “very good.”

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Erin Woo

7/20/10 electronic mail from Sung to Holmes saying they weren’t capable of validate Theranos’s checks. The outcomes had been “shut” in some instances however not adequate.

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Erin Woo

She had visited Theranos and thinks she met Holmes whereas she was there. She noticed a Theranos system whereas she was there and stated it seemed like an oven. The concept you may do one thing so small and environment friendly on web site was a “nice concept,” she thought on the time.

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Erin Woo

Celgene entered into an association with Theranos. Her understanding was that Theranos was growing a platform to investigate the endpoints. She thought they may do it effectively with a really small quantity of blood, which might be a “enormous benefit.”

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Erin Woo

We’re beginning her testimony in 2009, when she labored on a drug known as ACE-011 being developed for therapy of anemia and bone loss. Her function was to recommend proteins within the blood to measure that might recommend whether or not the drug was working (e.g., hormones).

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Erin Woo

Dr. Sung received a Ph.D at Georgetown after which did a postdoc at Stanford earlier than going into trade. She labored in numerous biotech corporations, together with Celgene, which was later purchased by Bristol Myers Squibb. She’ll be testifying about her work at Celgene.

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Erin Woo

We’re again in session. The federal government is looking Dr. Victoria Sung. (Rosendorff will decide up on Friday.)

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Erin Woo

After a protracted dialogue of an electronic mail chain about proficiency testing, Rosendorff is finished with testimony for at the moment. (He has a battle this afternoon.) We’re going to take a 20 minute break after which decide up with a unique witness for the remainder of the afternoon.

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Erin Woo

Now taking a look at a doc from the American Proficiency Institute that provides “Acceptable” scores to all the proficiency checks.

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Erin Woo

Trying now at an electronic mail from Rosendorff: “We’re regularly doing proficiency testing.” Rosendorff testifies to make clear that this was predicate testing.

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Erin Woo

After taking a look at his 2016 testimony (within the binders!), Rosendorff says he nonetheless doesn’t bear in mind telling the federal government that. “I assume the report is right,” he says.

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Erin Woo

We’re now again to the place we began yesterday, discussing Rosendorff’s contact with the federal government. Wade asks Rosendorff if he remembers telling the federal government that Theranos machines used various evaluation proficiency to measure accuracy. Rosendorff says no.

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Erin Woo

Rosendorff beforehand testified there was no formal proficiency testing processes in place. After Wade challenges him, Rosendorff clarifies: There was proficiency testing for predicate testing (industrial checks), however not for Theranos checks

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Erin Woo

Taking a look at a top quality techniques presentation for 2014 from Langly Gee, Theranos’s high quality management supervisor. Wade is displaying failure charges for Edison high quality management checks. “One thing’s not squaring up,” Rosendorff says — these failure charges are decrease than he thought they had been.

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Erin Woo

Wade is constant on this line of questioning, noting that Rosendorff testified about considerations in June 2014 however signed validation experiences in Aug. and Sept. 2014.

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Erin Woo

Rosendorff testifies that he wouldn’t have continued signing validation experiences for Theranos’s blood testing system, the Edison, if he thought it was unreliable.

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Erin Woo

We’re again from break! And on to a different Edison validation report.

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Erin Woo

We’re going via a Sept. 2013 validation report on the Edison for TSH, a thyroid take a look at. This doc, with Rosendorff’s signature, validates the take a look at for affected person use. Wade is strolling Rosendorff web page by web page via the report.

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Erin Woo

Rosendorff testifies that he by no means instructed the CLIA crew to cease utilizing the Edison take a look at altogether, however did on some particular checks.

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Erin Woo

Wade is now noting that Rosendorff was among the many highest-paid workers at Theranos. Rosendorff says that he thought he ought to have been paid extra, given Theranos’s issues, however that is stricken from the report.

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Erin Woo

Rosendorff says he had considerations about QC. Wade says he was paid to have considerations. “That’s why you receives a commission the large bucks.” Rosendorff replies: “Not as huge bucks as you receives a commission.” Cue the largest giggle of the trial to date.

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Erin Woo

Wade is making a degree he’s made earlier than, that high quality management samples aren’t affected person samples — noting that “nothing dangerous occurs” to sufferers if a QC take a look at fails.

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Erin Woo

We at the moment are on to a mid-Jan 2014 electronic mail from Rosendorff to the CLIA lab crew asking them to check with very detailed quality-control insurance policies.

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Erin Woo

Balwani’s response: “I spoke with the groups at the moment and they’re all going to place in lengthy hours and do no matter it takes to get this achieved tomorrow.” Rosendorff testifies: “I had many many battles with Sunny about what was wanted versus what he was ready to permit.”

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Erin Woo

Rosendorff added: “I do really feel that it was very tough to get solutions from Daniel’s crew.” In a later electronic mail, Rosendorff doubles down on needing the specificity research: “No they’re required. Crucial actually.”

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Erin Woo

From the e-mail chain. Balwani: “As we all know, we take these points with seriousness. Why didn’t you elevate these earlier than to me once I was asking for any points for months?” Rosendorff: “My apologies for the late suggestions relating to our readiness …”

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Erin Woo

Notable frustration from Rosendorff after he tries to make a degree and Wade cuts him off: “I’m simply studying emails and saying, sure, that’s what’s taking place right here.”

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Erin Woo

We’re now onto dialogue of the Walgreens launch. In a 11/10/13 electronic mail to Balwani, Rosendorff flagged points that wanted to be addressed earlier than the Walgreens launch. Wade is strolling him via the e-mail chain with Balwani, level by level.

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Erin Woo

After many questions establishing that Rosendorff didn’t disguise Normandy lab from the inspectors, Wade notes that the inspection discovered “minor deficiencies.” Rosendorff says that Holmes and Balwani had been upset that there have been deficiencies and {that a} clear report would have been “best.”

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Erin Woo

Wade is attempting to make the purpose that this was to protect commerce secrets and techniques. Rosendorff says this doesn’t make sense, asking who would pin commerce secrets and techniques to a bulletin board.

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Erin Woo

We’re wanting once more on the electronic mail from Elizabeth Holmes about strolling the auditors via the lab. We’re now seeing the response: “All the bulletin boards from the foyer to HR had been lined with paper so the inspector couldn’t view any of the drawings or gadgets on the boards.”

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Erin Woo

Wade is beginning by asking questions in regards to the Dec. 2013 CA Dept. of Public Well being audit that we mentioned yesterday. Wade’s going via a doc itemizing preparations for the audit as he tries to determine that Rosendorff had accountability right here.

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Erin Woo

Courtroom is in session for an additional day of the Elizabeth Holmes trial! We’re persevering with with the cross-examination of former Theranos lab director Adam Rosendorff, which protection lawyer Lance Wade expects to take all day.

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Erin Woo

Rosendorff requested for a loo break, and we’re as a substitute ending for the day! Will decide again up at 9 a.m. Pacific Time tomorrow.

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Erin Woo

Essential content material: The custom-built laboratory info system was named Tremendous Mario. (Different enjoyable names: Jurassic Park = the lab with all the commonplace machines, Normandy = the lab with Theranos machines.)

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Erin Woo

Cross examination has been a lot slower and calmer now that we’re again from break. Much less urgent Rosendorff to reply particular questions and extra jokes.

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Erin Woo

Wade is holding up a replica of the ebook and speaking in regards to the significance of its PR and advertising and marketing efforts, in addition to its secrecy.

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Erin Woo

Rosendorff learn Walter Isaacson’s Steve Jobs biography and appreciated the joy of Silicon Valley, which helped lead him to Theranos. (That Steve Jobs biography was a favourite of Holmes’s, too.)

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Erin Woo

We’re again from break! And we’ve taken a giant step again in time — now wanting on the resume Rosendorff despatched Theranos when he utilized in 2013.

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Erin Woo

We’re now going backwards and forwards on who was concerned within the R&D course of. Rosendorff says he was not conscious on the time if Holmes was concerned with R&D. Per the grasp validation plan, Rosendorff needed to log off on every assay earlier than it might go into validation.

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Erin Woo

We’re going via what checks had been supplied through the family and friends launch. The one checks run via 9/28/13 had been two that didn’t run on the Edison, Rosendorff confirms. The primary Edison-based take a look at, TSH, a measure of thyroid operate, was run 10/17/2013.

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Erin Woo

Wade additionally retains having Rosendorff learn his personal testimony, silently, to himself. That’s taking place once more now.

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Erin Woo

Within the electronic mail, Balwani writes, “We really feel assured we will deal with ~30 samples/day from this location at this level. And it has been 2 months since now we have been out in WAG [Walgreens]. It’s time to go dwell.” Wade now attempting to make the purpose that they’d not beforehand been dwell.

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Erin Woo

Discovered it! We at the moment are taking a look at an 11/7/13 electronic mail from Balwani to Rosendorff about opening their Palo Alto/Uni Ave location to the general public on the approaching Monday. It had beforehand solely been open to buddies/household.

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Erin Woo

We at the moment are, as soon as once more, looking for the proper pages within the MANY binders the protection gave Rosendorff.

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Erin Woo

Wade is now saying that Rosendorff testified earlier to a grand testimony that it was a “restricted family and friends” however didn’t accomplish that on Friday.

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Erin Woo

We at the moment are on to the industrial launch. In an electronic mail that we noticed in direct, Rose Edmonds (a improvement scientist) says that not one of the assays are utterly via validation testing. Rosendorff had testified that is vital as a result of they had been only a week from launch.

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Erin Woo

Wade gave a hypothetical the place Rosendorff had rotten meals in his workplace, and subordinates complain to Balwani. Rosendorff continued to look confused, and Wade is now transferring on.

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Erin Woo

We at the moment are … asking about firm hierarchy? (Rosendorff reported on to Balwani, and Younger was additionally above him.) “Are there ever circumstances the place it’s acceptable for senior administration to have discussions a couple of subordinate?” Wade asks. Rosendorff appears confused.

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Erin Woo

Rosendorff additionally served as Theranos’s scientific guide. Holmes wouldn’t qualify for this both.

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Erin Woo

Wade is asking about Holmes’s training. Famously, she dropped out of Stanford. “Based mostly in your understanding of her background, would she be certified to be a CLIA supervisor or lab director? Rosendorff: “No, positively not.”

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Erin Woo

Wade says, and Rosendorff concedes, that in the end it was Rosendorff’s accountability if the checks failed and his accountability to implement high quality management insurance policies and proficiency checks.

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Erin Woo

Rosendorff is agreeing with Wade’s questioning that Holmes by no means instructed him to report an inaccurate outcome, and that Holmes by no means directed him to not pause or discontinue checks he thought had been inaccurate.

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Erin Woo

Wade: “Did you ever use a take a look at on sufferers that you simply believed was inaccurate or unreliable?” Rosendorff: “No.” Did he ever present outcomes that he believed to be unreliable? “No.”

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Erin Woo

Wade: “Did you faithfully dispatch your authorized obligations as lab director at Theranos?” Rosendorff: “Sure, I did.” Wade: “Did you supply lab checks that you simply knew on the time had been inaccurate or unreliable?” Rosendorff: “No … I ordered the laboratory to stop testing.”

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Erin Woo

Two themes of cross to this point: Wade appears to be attempting to show that Rosendorff labored with the federal government in shaping his testimony, and is hammering house that Rosendorff was legally and ethically liable for the lab.

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Erin Woo

Rosendorff confirms that he was acquainted with the laws. Wade is now asking a sequence of questions on Rosendorff’s obligations: “You might be required to…?” Rosendorff says these are his obligations, however “I obtained pushback from administration.”

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Erin Woo

Wade is now holding up a stack of papers (possibly an inch thick?) and asking if Rosendorff knew all of these laws, presumably the stack of papers he’s holding. Davila, the decide: “You’re asking to confess the whole thing of this doc? It’s what number of pages? 122?” It’s admitted.

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Erin Woo

We’re into Rosendorff’s time at Theranos! Wade requested him if being the CLIA lab director meant he was legally liable for what occurred within the lab, and Rosendorff stated sure.

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Erin Woo

Wade is constant to attempt to decide aside the prosecution’s case, noting that they didn’t go in chronological order via the paperwork. He nonetheless hasn’t actually requested about Rosendorff’s precise experiences at Theranos.

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Erin Woo

Wade is arguing that Rosendorff’s testimony in direct doesn’t match what he testified in 2019. Earlier, he simply stated he wasn’t happy with administration’s response to proficiency testing. His testimony on Friday was extra detailed.

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Erin Woo

We’re now into questioning in regards to the testimony itself. Wade is asking Rosendorff about his causes for leaving Theranos. Wade asks if Rosendorff mentioned that query/reply with the federal government. Rosendorff says sure.

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Erin Woo

Wade presses him on whether or not he instructed the federal government what he was going to testify.

Rosendorff says no.

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Erin Woo

Wade is now asking about how Rosendorff was ready to testify by the federal government. Rosendorff: “I used to be at all times instructed by the federal government to be truthful.” Wade requested: “Did they inform you to present that reply?” Rosendorff: “No.”

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Erin Woo

Wade goes via an inventory of individuals and asking Rosendorff if he’s met every of them. His tone is much extra aggressive than with earlier witnesses.

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Erin Woo

We’re beginning with cross-examination. Lance Wade, Holmes’s lawyer, is beginning by grilling Rosendorff on what number of occasions he’s met with the federal government.

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Erin Woo

And, with that, his direct testimony has wrapped. We’ll decide up with cross-examination after a 30-min. break.

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Erin Woo

Finally, Rosendorff stated, he left after “infinite conferences and conversations, very cautious examine of medical literature, late nights … nice efforts on my half to enhance the standard of testing at Theranos.”

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Erin Woo

Rosendorff testified about why he spoke with then-WSJ reporter John Carreyrou: stated he felt a “ethical and moral” obligation to alert the general public.

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Erin Woo

Bostic identified the road “We are going to execute this 12 months.” When did Theranos begin testing? he requested. Rosendorff responds: 2013.

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Erin Woo

Extra texts from Holmes/Balwani! Holmes: “This 12 months is our 12 months. We are able to always remember this tiger.” Balwani: “I do know, I’m targeted on it. We are going to execute this 12 months.” Holmes: “I do know. I’m targeted on it too. And for our children always remember who we’re.”

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Erin Woo

On Rosendorff’s final day, he says Balwani supplied a handshake, and he declined. Balwani gave him exit paperwork to signal. Balwani stated he can be ready to maintain him on, however Rosendorff stated it wasn’t well worth the danger to his status.

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Erin Woo

Holmes forwarded it to Balwani: “We have to reply to him now and minimize him Monday.” Rosendorff had already accepted a job supply at one other lab and was planning on leaving — interpreted this as them attempting to fireplace him proper earlier than he left.

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Erin Woo

Nov. 2014 electronic mail to Rosendorff asking for a redraw. Rosendorff forwarded this to Holmes/Balwani, and Balwani stated the rep “jumped the gun” asking for a redraw. Adam forwarded this to Elizabeth: “I discover Sunny’s response offensive and disingenuous. He ought to apologize.”

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Erin Woo

Gov’t attempting to make the purpose that Holmes/Balwani are actively courting investments whilst Rosendorff raises considerations about essential issues within the lab.

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Erin Woo

We’re now taking a look at Nov. 2014 texts between Balwani and Holmes, speaking about investments from Alice Walton and Rupert Murdoch. Balwani: “They don’t seem to be investing in our firm, they’re investing in our future.”

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Erin Woo

“…how basic it’s to all of us for you or another worker by no means to do something you’re not utterly assured in.” Rosendorff says he disagrees with this, and we’ve seen emails displaying that he raised considerations.

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Erin Woo

Holmes’s response (pt. 1): “How unhappy and disappointing to see this from you. Outdoors of the very fact you’ve by no means emailed me on any considerations you allude to there earlier than however now electronic mail this, you understand from each dialog we’ve ever had collectively …”

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Erin Woo

Now taking a look at Nov. 14 emails from Rosendorff. “I really feel actually uncomfortable with what is going on proper now on this firm. Is there any method you will get Spencer again on the CLIA [Clinical Laboratory Improvement Amendments] license and take me off? I’m feeling pressured to vouch for outcomes that I can’t be assured in.”

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Erin Woo

Christian forwarded the e-mail to Elizabeth, writing: “His response to this was to do a vacutainer redraw & I ended the dialog at that time.” A vacutainer draw is a non-Theranos retest.

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Erin Woo

He continued: “Additional 100% honesty and transparency to the affected person is crucial. “My first obligation is to not Theranos, however to the affected person as per my Hippocratic oath “primum non nocere.” “I by no means stated I wouldn’t speak to the MD.”

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Erin Woo

In an electronic mail to Christian, Rosendorff doubled down. “This isn’t a query of decoding outcomes — this can be a query of the reliability and accuracy of the outcome.” “Essentially the most constructive factor at this level is to supply dependable and sturdy assays, to not spin.”

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Erin Woo

Nov. electronic mail from Rosendorff in regards to the affected person name to Christian: “In case you’re asking me to defend these values then the reply isn’t any.” He was refusing to defend the accuracy of the outcome, Rosendorff testifies.

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Erin Woo

Emails like this contributed to a “crescendo” of points, Rosendorff testifies, resulting in his resignation in Nov. 2014.

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Erin Woo

Taking a look at an electronic mail from a medical assistant involved that HDL and LDL (ldl cholesterol) readings are usually not including up. That raises considerations in regards to the accuracy of the take a look at, Rosendorff testifies.

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Erin Woo

In a follow-up electronic mail from Holmes: “Kerry please delineate this based mostly on what we did with the NY inspector just lately and ship that out.” Nobody was allowed to enter or exit the Normandy lab through the go to, Rosendorff stated. These instructions got here from Balwani.

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Erin Woo

1/26/13 electronic mail from Holmes in regards to the upcoming audit from the California Dept. of Public Well being: “Let me know if the trail for strolling the auditors in and downstairs has been cemented so we keep away from areas that can not be accessed, and what that path is.”

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Erin Woo

Christian forwarded the message to Daniel Younger and cc’d Elizabeth. In a later electronic mail to Elizabeth and Daniel, Christian wrote that Rosendorff already authorized the redraw. “Want to debate messaging for my name with this doc, with regard to motive for the redraw,” Christian wrote.

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Erin Woo

Now taking a look at an electronic mail to Christian Holmes to approve a redraw, regardless of his not having a place within the scientific lab or a medical/science background. Rosendorff says he wasn’t conscious Christian was concerned in approving redraws.

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Erin Woo

Now onto discussing transparency. “I felt a battle between the messaging that the corporate wished me to offer … and my obligation as a doctor” to precisely report outcomes when speaking with docs, Rosendorff says.

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Erin Woo

In an electronic mail chain in regards to the proficiency testing samples, Balwani wrote that Theranos’s validation has been “wonderful prior to now” and that “it’s these PT samples which are off.” Rosendorff testifies that he disagrees.

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Erin Woo

There was no formal proficiency testing course of at Theranos, Rosendorff says. He says he raised these considerations at a mid-2014 assembly to individuals together with Holmes, Theranos’s president, Ramesh Balwani, and the VP Daniel Younger. He felt like they gave “lip service” to this difficulty, and there was no progress made earlier than he left in November.

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Erin Woo

Rosendorff’s response to conditions like this: “Each time we received a doctor criticism, each time our QC would fail, each time we had a spate of anomalous outcomes, it raised nice considerations to me in regards to the accuracy of the testing course of.”

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Erin Woo

We’re taking a look at an electronic mail from somebody who has been on coumadin, a blood thinner medicine, for 13 years. After switching to Theranos testing, her outcomes got here again low, and she or he elevated her dose in consequence. “I’ve not felt ‘proper’ for the reason that one elevated dose,” she wrote.

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Erin Woo

I’m again within the courtroom for an additional day of the Elizabeth Holmes trial! We’re beginning with the tip of former lab director Adam Rosendorff’s direct testimony.

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Erin Woo

With that, we’re going to interrupt for the weekend. I’ll be within the courthouse Tuesday, Wednesday and Friday subsequent week — see you on Tuesday!

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Erin Woo

For the previous hour, Rosendorff has testified about issues w numerous checks, incl. the potassium, chloride and sodium checks. In a 10/27/14 electronic mail, he wrote: “I’m not certain of the scientific worth of a sodium assay, through which the one time we will report it’s when it’s not essential”

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Erin Woo

We’re now moving into Rosendorff’s choice to depart. He forwarded work emails with problems with concern to his Gmail account in 2014, testifying that “I wished to guard myself.” He additionally says he began searching for one other job in mid-2013, shortly after becoming a member of Theranos.

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Erin Woo

In the present day’s theme appears to be a) Rosendorff was involved about defective checks, b) Rosendorff really helpful the corporate cease utilizing these checks and c) Holmes/Balwani had been conscious however declined to vary course.

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Erin Woo

We’re now on points with Theranos’s HDL (ldl cholesterol) checks. Rosendorff says he “suspected” Theranos’ HDL was now not working as of Feb. 2014 and advised reverting to FDA-approved units, however obtained pushback from Balwani, Holmes and Theranos VP Daniel Younger.

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Erin Woo

We’ve now seen two electronic mail chains together with Holmes/Balwani about complaints/points that Rosendorff wasn’t included on. Rosendorff says he “completely” ought to have been included on the emails.

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Erin Woo

Rosendorff is testifying about points with the hCG checks, which detect being pregnant. In June 2014, Christian Holmes wrote to Elizabeth: “Simply fyi-hCG proper now inflicting some severe points and affected person complaints.”

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Erin Woo

We’re evaluating Rosendorff’s time on the College of Pittsburgh to his time at Theranos. At Theranos, complaints about take a look at outcomes had been “way more frequent,” and he “felt pressured to defend the corporate’s outcomes to physicians,” he stated.

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Erin Woo

Theranos units failed so regularly that it raised questions in regards to the accuracy of the outcomes, Rosendorff testifies. Efficiency of Theranos assays was worse than non-Theranos analyzers.

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Erin Woo

Rosendorff is now discussing high quality management. As we discovered in Cheung’s testimony, high quality management occurred as soon as a day, and machines can be recalibrated in the event that they failed. This was a frequent dialogue subject at Theranos, he testifies.

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Erin Woo

Rosendorff had a gathering w Holmes the place he expressed his considerations. She was very nervous and was not her standard composed self, he stated: She was trembling, knee was shaking, she was very upset.

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Erin Woo

In an electronic mail to Holmes, Rosendorff wrote that “Just a few extra weeks to type via these medical and logistical points, and getting the right degree of coaching and staffing would assist us tremendously.”nd staffing would assist us tremendously.”

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Erin Woo

An electronic mail from Rose Edmonds from 9 days earlier than the launch says “none of our assays are utterly via validation together with scientific pattern testing with fingerstick.” Beneath CLIA regulation, the checks must be validated correctly earlier than they can be utilized for affected person care.

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Erin Woo

Main as much as Sept 2013 industrial launch, there was “a whole lot of anxiousness” in regards to the appropriateness of utilizing modified checks for affected person care. The final temper of the corporate was “very optimistic,” however some had been questioning why Theranos wasn’t utilizing its personal units.

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Erin Woo

The downstairs Theranos lab, which contained the Theranos Edison units, was known as Normandy, Rosendorff stated. In line with Rosendorff, Balwani known as the upstairs lab with typical units Jurassic Park: Balwani “believed the traditional units had been dinosaurs.”

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Erin Woo

Rosendorff beginning sturdy with why he stop Theranos, incl. unwillingness of administration to carry out proficiency testing and feeling pressured to vouch for checks he wasn’t assured in. Additionally: “The corporate was extra about PR and fundraising than affected person care.”

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Erin Woo

The federal government is looking former Theranos lab director Adam Rosendorff at the moment within the trial of Elizabeth Holmes. Per prosecutor John Bostic, this testimony is more likely to take all day.

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Erin Griffith

Mattis is finished and now a prosecutor is studying textual content messages between Holmes and Balwani whereas a forensics man from PWC says “sure” and “right.” I assume that is how they should current this proof however it’s actually actually weird.

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Erin Griffith

On redirect: Why did Mattis initially help Holmes after the WSJ expose after which change his thoughts? There have been too many surprises, he stated. “We had been unable to assist her on the elemental points that she was grappling with if we solely noticed them within the rearview mirror.”

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Erin Griffith

We have a look at Mattis’ emailed response to Holmes after the WSJ article. “Be swift in response with unassailable reality,” he wrote. “I’ve full religion in our plan.”

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Erin Griffith

He additionally asks if Mattis knew Theranos was doing blood checks in a central lab.
Mattis: “I assumed the central Theranos lab was the Theranos machine.”

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Erin Griffith

In cross-exam, Holmes lawyer Kevin Downey requested Gen. Mattis about his {qualifications} to judge Theranos’s know-how and be a board director.

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Erin Griffith

Initially Mattis thought the issue was fixable — the corporate merely tousled its messaging and will come clear. Quickly after, he started to query whether or not or not the Edison machine labored. “There simply got here a degree once I didn’t know what to imagine about Theranos anymore.”

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Erin Griffith

After WSJ article, board members emailed Holmes in regards to the allegations. Her response: Theranos was transitioning from working below one laboratory framework to a different. Mattis: “I used to be nonetheless confused.” At a minimal, “we had a status drawback right here and an integrity drawback.”

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Erin Griffith

Ominous. After Theranos discovered a couple of 2015 WSJ article by John Carreyrou that uncovered issues with Theranos’s know-how, there was a board assembly with a slide titled “Responsibility of Loyalty.” We’re proven that slide, besides it’s comically redacted — all content material blacked out — and Mattis doesn’t bear in mind it.

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Erin Griffith

We see an electronic mail from Holmes instructing Mattis that, in an interview with Ken Auletta of The New Yorker, he can’t talk about “how our know-how works (i.e. that there’s a single system that does all checks)”

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Erin Griffith

Fortune revealed a protracted correction to that article, which I don’t bear in mind seeing from a whole lot of different retailers that wrote optimistic tales. Parloff is listed as a witness and protection is making an attempt to compel him to show over his notes.

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Erin Griffith

Assistant U.S. lawyer John Bostic pulls up Fortune’s 2014 cowl story about Theranos. Mattis spoke to the reporter, Roger Parloff, and stated Holmes gave him steering on what he might and couldn’t say.

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Erin Griffith

Nonetheless attempting to coach my mind to not hear “amino acid” each time they are saying “immunoassay”

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Erin Griffith

Theranos received a whole lot of mileage out of a 2013 WSJ article! We see an electronic mail the place Holmes sends Mattis the hyperlink, in addition to a slide of it in a Theranos board presentation

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Erin Griffith

We’re going via this board presentation, which has a slide claiming Theranos’s tech had been validated by 10 of the 15 largest pharmaceutical firms, alongside logos of FDA & WHO and a quote from Johns Hopkins.

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Erin Griffith

What had been your sources for details about the corporate? Mattis: “Ms. Holmes.” “Was she the first supply?” “The only real supply.”

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Erin Griffith

Mattis additionally invested $85okay into Theranos, which he stated was a big sum “for somebody who had been in govt. service for 40 years.”

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Erin Griffith

Did you settle for Ms. Holmes’s invitation to affix Theranos’s board? “Sure I did, after asking why. I used to be not a medical particular person.” She stated she wished his mgmt. and organizational expertise.

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Erin Griffith

Mattis testified that he was not conscious of Theranos units ever getting used on battlefields, army helicopters, clandestine operations…

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Erin Griffith

Mattis testified that Holmes was “very aggressive” at wanting the army pilot program to get going. “She was very assured that if we received it in there, it will show itself.” He knew it was a start-up, however famous that Holmes had been engaged on it for a decade by 2013.

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Erin Griffith

oy, one other electronic mail the place Mattis calls Holmes “younger Elizabeth.”

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Erin Griffith

Holmes was the one telling him in regards to the Theranos system’s capabilities, he stated. “I used to be frankly amazed at what was doable.” However he added: “That didn’t take the place of getting the system show itself.”

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Erin Griffith

Mattis testified the scale of the Theranos system and its promised capabilities made it so engaging to potential army use. Accuracy and reliability had been essential given the casualties, he stated. “The stakes are very excessive.”

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Erin Griffith

In a single electronic mail, Mattis instructed Holmes he desires to discover a pilot venture to check Theranos machines alongside the military’s current techniques to check. Mattis testified that he was very “taken” by the chances of utilizing a drop of blood for diagnostics.

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Erin Griffith

Mattis, a U.S. basic and former secretary of protection, was on Theranos’s board between 2013 and 2016.

We begin by taking a look at 2011 emails between them after assembly. In a single, Mattis writes, “thanks in your word, younger Elizabeth, and I want you each success.”

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Erin Griffith

On the courthouse for US v. Holmes. James Mattis has taken the stand.

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Erin Griffith

Gould’s testimony lasted round 15 minutes – From behind a transparent masks, she received emotional discussing her expertise discovering out through Theranos checks that, after three miscarriages, her fourth being pregnant was not viable. The completely satisfied ending is that it was. She had a child. Adjourned!

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Erin Griffith

Protection wraps up by declaring that Zachman’s apply had many many take a look at outcomes from Theranos past Ms. Gould that appeared to be high-quality. Choose Davila is keen to maintain going, though we’re over on time at the moment. Brittany Gould takes the stand.

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Erin Griffith

Protection works to chip away on the testimony by implying that the Theranos take a look at outcomes merely existed on a unique scale and may have been “rebaselined.” Additionally famous that Holmes’s brother Christian, who responded to Zachman’s criticism in regards to the outcomes, apologized.

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Erin Griffith

Oh my, Theranos supplied Zachman a “corrected” model of the outcomes which merely eliminated a decimal level however the she says numbers nonetheless wouldn’t have made sense inside the context of a viable being pregnant or a lack of one.

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Erin Griffith

“This circumstance was very impactful to me because it stood out as such a purple flag for the being pregnant.”

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Erin Griffith

Gould took 5 blood checks, Three from a subsidiary of Quest Diagnostics and a pair of from Theranos. She went on a rollercoaster, with the Quest take a look at displaying she was pregnant, the 2 Theranos checks displaying a miscarriage, and a pair of extra Quest checks displaying she was certainly nonetheless pregnant.

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Erin Griffith

Zachman describes the case of a affected person named Brittany Gould (sp?) who had had Three miscarriages. She got here to see Gould after a optimistic at-home being pregnant take a look at “to determine that sure, she is pregnant and have a look at the well being of the being pregnant.”

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Erin Griffith

Zachman was on a committee that evaluated service suppliers and her apply adopted Theranos blood checks round 2014. Theranos even arrange a lab downstairs from one in every of her apply’s workplaces, which Zachman stated was “very thrilling.”

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Erin Griffith

New witness: Audra Zachman, a nurse practitioner at an OB-GYN apply.

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Erin Griffith

I’ve loved chatting with a number of the trial-heads and and followers of justice who’ve proven as much as watch (offered they don’t seem to be moles :). In the present day I met a retired paralegal who says he was on the Patty Hearst trial!!

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Erin Griffith

Redirect up. US Legal professional Robert Leach reminds jurors that when Gangakhedkar resigned from Theranos, she had considerations in regards to the reliability of Theranos’s checks and mentioned them with Holmes.

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Erin Griffith

Extra dangerous boss/good boss content material: We see an electronic mail Gangakhedkar despatched to Balwani defending how exhausting her crew was working + an electronic mail she despatched to her crew praising their lengthy hours. She then resigned from Theranos and Holmes tried to get her to remain, providing break day.

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Erin Griffith

Protection beforehand confirmed that Holmes let Gangakhedkar go to India to see household, portray her as a sympathetic boss and Balwani because the aggressive one. “[Balwani’s] attempting to make you’re feeling responsible that you simply weren’t working?” “Sure” “You had been pissed off by that?” “Sure.”

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Erin Griffith

We’re nonetheless doing cross-examination of Gangakhedkar.

Wade exhibits an electronic mail from the previous Theranos president, Ramesh Balwani (who goes by Sunny), chastising the lab staff for not working as exhausting as his software program crew, portray him because the one pushing unrealistically for overwork.

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Erin Griffith

Zachman will now supply skilled testimony on decoding HCG checks (a hormone used to establish being pregnant standing)

You anticipate HCG ranges to double each 48 hours or so in early being pregnant.

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Erin Griffith

Wade goes on a run of questions (peppered with “sure” responses by Gangakhedkar) arguing that the purpose of R&D is encountering points and setbacks and fixing them.

“In R&D typically you need to fail earlier than you may succeed proper?”
“Sure.”

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Erin Griffith

We see an electronic mail the place Holmes requested Gangakhedkar for some testing information forward of a gathering with the DoD. Gangakhedkar emails that Vitamin D information is not prepared and Holmes writes asking for information on different checks. The purpose is, apparently, have a look at this instance of Holmes not doing fraud.

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Erin Griffith

The Protection technique re: Theranos lab issues appears to be: look, actual work was being achieved; there have been processes in place that certain appeared rigorous; the very individuals declaring issues additionally signed off on all of it.

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Erin Griffith

To this point it’s mainly a name and response, the place Wade describes work of Gangakhedkar + Theranos’s lab, and Gangakhedkar replies “sure.” “Had been you pleased with that work?” “Sure.” “And others on the firm had been completely satisfied about that work as properly?” “I feel so.”

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Erin Griffith

Again within the San Jose courtroom at the moment for extra US v Holmes. Surekha Gangakhedkar, a scientist at Theranos, is again on the stand being cross-examined by Holmes’s lawyer Lance Wade.

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Erin Woo

With that, Choose Davila is ending Gangakhedkar’s testimony for the day and instructing jurors to not devour media content material in regards to the trial, as at all times. The trial will resume on Tuesday — Erin Griffith shall be on the courthouse to deliver you reside updates.

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Erin Woo

We at the moment are onto cross-examination. Holmes’s lawyer is questioning her about G.S.Okay.’s examine of Theranos’s assays, declaring that the examine promoted her work. “The Theranos system eliminates the necessity for a lab and offered high quality information,” the G.S.Okay. memo stated.

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Erin Woo

Regardless of having signed an N.D.A., Gangakhedkar printed out some paperwork and took them house when she left Theranos. “I used to be fearful that I might be blamed,” she testified.

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Erin Woo

Three days after the e-mail from Balwani, Gangakhedkar despatched Holmes her resignation electronic mail. She testified that she was “very harassed and sad and anxious” with the planning of the Walgreens launch.

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Erin Woo

In an electronic mail from Balwani to Gangakhedkar, with Holmes copied, Balwani stated the software program crew had been working till 3:07 a.m., however that the Edison blood-testing units Gangakhedkar’s crew labored on had been “all sitting idle.” This was an instance of the stress they had been below, Gangakhedkar stated.

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Erin Woo

And, with that, Cheung has been dismissed. The federal government is looking Surekha Gangakhedkar now, a former Theranos crew supervisor.

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Erin Woo

The federal government is now asking questions on a doc that claims, amongst different issues, that Theranos’s units “might be operated with minimal coaching” and that its outcomes have “precision and accuracy equal to conventional scientific laboratory analyzers.” Neither is true, Cheung says.

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Erin Woo

Cheung stated they had been continually having to recalibrate the machines, which made outcomes take 2-Three days fairly than the couple hours promised. “We had individuals sleeping within the automobile as a result of it was taking too lengthy,” she stated.

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Erin Woo

Cheung simply stated she “grew to become involved a couple of month in” with the vitamin D samples, in November of 2013. She was involved in regards to the efficiency of the checks and that they had been getting used on affected person samples.

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Erin Woo

Protection is finished with cross-examination, after displaying Cheung Theranos coverage paperwork she stated she’d by no means seen. The federal government is now asking questions once more for redirect.

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Erin Woo

Holmes’s lawyer is asking Cheung a whole lot of questions on high quality management checks that occurred on the Theranos units. “There’s a recognition that some errors would occur and this was the coverage on how you can cope with these errors,” he stated.

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Erin Woo

Erika Cheung is now taking the stand as cross-examination continues.

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Erin Woo

The replace you’ve got all been ready for: The decide is STILL announcing it ther-AH-nos.

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Erin Woo

Within the courthouse now for an additional day of the Elizabeth Holmes trial. We’re anticipating to wrap up testimony at the moment from Erika Cheung, one of many key whistleblowers within the case.

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Erin Griffith

That’s it for at the moment.🩸💉⚖️

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Erin Griffith

To this point the theme of the cross-exam of Cheung appears to be utilizing excruciatingly arcane particulars in regards to the processes and procedures of the Theranos lab to point out that its work was very sophisticated, involving numerous sensible, pedigreed individuals.

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Erin Griffith

Cheung testified that in conferences about high quality management failures, Theranos’s lab administrators ignored the obvious doable motive for the failures: “The Edison units didn’t work.”

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Erin Griffith

Trial gear alert: A reporter introduced their very own binoculars to see the displays on the TV screens.

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Erin Griffith

Erika Cheung is again on the stand.

She described Theranos’s apply of demoing blood checks for V.I.P.s, the place a number of the outcomes got here from Theranos machines and others from Siemens analyzers.

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Erin Griffith

At this level now we have heard attorneys and witnesses pronounce “Theranos” tons of of occasions, making me begin to wonder if decide is attempting to mess with us by sticking to his “ther-AHHHHH-nos” pronunciation.

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Erin Griffith

I ought to word the lady who clapped and yelled “you’re a superb mother!” at Holmes yesterday abruptly stormed out of the courtroom after Choose Davila warned everybody that yelling stuff like that in entrance of any jurors might trigger a mistrial. I don’t see her right here at the moment!

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Erin Griffith

Elizabeth Holmes’s entourage is down to only her mother at the moment.

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