Facebook tells employees to preserve all communications for legal reasons.

 

Erin Griffith

A lot of dialogue about Dan Mosley, who was a lawyer at Cravath. Some paperwork had been emailed by way of private Gmail accounts, Peterson stated, as a result of “We didn’t know what his role was in all of this. We didn’t want to get him in trouble.”

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Erin Griffith

Lance Wade (Holmes’s lawyer) just isn’t enjoying 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 truth.

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Erin Griffith

That is an attention-grabbing computer virus to play the jury movies that clearly and succinctly summarize what now we have realized to this point about Theranos’s issues and in addition exhibiting Holmes saying the buck stops along with her – “I’m the founder and CEO of this company.”

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Erin Griffith

Decide Davila has overruled objections to enjoying clips of Holmes on Mad Cash and we’re watching the half the place she says “This is what happens when you work to change things. First they think you’re crazy, then they fight you, then you 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 believe this report as prepared by Pfizer?” “Yes.” Peterson says that endorsement was an enormous think about investing.

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Erin Griffith

A well-known rundown of Theranos claims to traders. Its expertise had been “comprehensively validated over the course of the last 7 years by 10 of the 15 largest pharmaceutical companies” 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 aim was to seek out traders “with less emphasis on liquidity and more emphasis on long term capital appreciation.”

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Erin Griffith

“She was hand picking 5-6 private families to invest in her company. … She was inviting us to participate in this opportunity.” Peterson says Holmes didn’t need giant PE companies/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 threat startup unicorns: “Did you feel like Theranos was selecting you as an investor?” Peterson: “Very much so.”

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Erin Griffith

When Peterson’s crew requested Holmes concerning the dangers of investing in Theranos, she stated the danger was within the “execution” of the Walgreens rollout. Was there a dialogue of expertise threat? Peterson says no.

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Erin Griffith

We see an e 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 most interesting meetings I can recall with the women profiled in the attached Fortune magazine article.”

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Erin Griffith

Lisa Peterson has taken the stand and defined her position 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 traumatic for the media right here. Members of the press now policing bystanders to observe the principles (silence telephones and many others) 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 supplied by the courtroom. Second, it is a pandemic downside. 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 annoyed 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 courtroom marshal goes to implement the “silent keyboard” rule (WHICH IS NOT A THING!).

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Erin Griffith

After her we are going to hear from Alan Eisenman, one other investor.

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Erin Griffith

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

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Erin Griffith

If there may be one factor Decide Davila hates its getting right into a “mini-trial” about facet points with no bearing on the problems being tried.

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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 indicate 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. Seems like we’re going to begin 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 identify board members had been components in his resolution to take a position. 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 break up that provides Holmes full management: “She has a firm grasp on the company — let there be no mistake.”

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Erin Griffith

In some ways this trial boils down one central stress which is enjoying out on this cross-examination: Have 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 unsure how nicely this clip truly makes the protection’s case, since she instantly says the funding cash will enable 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 the intention to focus fully on the retail rollout.

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Erin Griffith

We’re now going by means of 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 on the lookout for liquidity. Marvel if we are going to be taught 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 an enormous a part of why he invested as a result of it spoke to a higher mission. “Theranos wasn’t just about an opportunity to make money … but to do so in a way that was beneficial for lots and lots and lots of people.”

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Erin Griffith

I.P.O.? Theranos has a really long-term mind-set. “We plan on doing this for the next 20-30-40-50 years.” Navy? Confidentially, it’s “a big 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.

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Erin Griffith

We take heed 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 “cash from operations,” a.okay.a. profitably, since 2006. Tolbert testifies he believed the proceeds of the 2013 fund-raise can be used for retail enlargement — not R&D or tech growth.

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Erin Griffith

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

Erin Griffith headshot

 

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 assessments. Tolbert testifies that that’s the reason he invested.

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Erin Griffith

We’re going till 4 p.m. at present however I doubt we get to 3 not to mention 4 witnesses. Tolbert testifies concerning 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 common.

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Erin Griffith

Sadly I’m not in a position to see the jurors’ faces upon listening to Holmes’s voice for the primary time. Within the recording, she is giving the same old pitch about Theranos’s huge imaginative and prescient of making “the largest lab in the country” and to “change the reality of lab testing today.”

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Erin Griffith

We’re going to take heed to some recordings of a name Holmes had with traders. Earlier than introducing them, Schenk, the prosecutor, requested Tolbert if he had had the possibility 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 determine 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 annoyed about not having quite a lot of details about Theranos.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

After that, in 2006, Tolbert determined to take a position $2 million by way of the funding fund of Don Lucas’s son Chris.

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Erin Griffith

Tolbert had dinner with Holmes and Lucas the place they talked about Holmes’s imaginative and prescient and in addition “heard some fun stories from Don Lucas about his investment career.” 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 turning into worthwhile in 2007. (Narrator: It didn’t…)

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Erin Griffith

Level for crew “Theranos is not a Silicon Valley company because it didn’t raise from traditional venture 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 cause to maintain pondering Pfizer appreciated its expertise.

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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 expertise? No I don’t. You got here to the other conclusion? I did.

Erin Griffith headshot

 

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, this is 702 territory” or “same 406 from last time your honor.”

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Erin Griffith

We get a facet by facet of the report, one with Theranos brand on it and one with the Theranos and Pfizer logos on it. Would it not be honest to say in 2010 or after that Pfizer endorsed Theranos’s expertise or comprehensively validated Theranos’s expertise? Weber: “No”

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Erin Griffith

Now we see an e 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 e mail to a colleague, he stated “I was polite clear crisp and patiently firm as she pushed back.” 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 “oblique, deflective or evasive non-informative answers.”

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Erin Griffith

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

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Erin Griffith

Additional in his abstract, Weber says Theranos’s conclusions are “not believable” 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 expertise, which Holmes used to solicit funding from Walgreens and others)

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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 expertise. Consider that is the report the protection didn’t need proven to jurors, and the decide allowed Web page 1. Weber’s advice: “Theranos does not at this time have any diagnostic or clinical interest 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 position was to make a advice to the corporate about its expertise. “We were looking for diagnostic capabilities that would open the door for more effective intake of patients.”

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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. 🙏

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Erin Griffith

Seems like we’ll be listening to from our first investor (except for Walgreens): Brian Tolbert of the funding agency Corridor Group is prone to testify at present.

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Erin Griffith

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

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Erin Griffith

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

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Erin Woo

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

Erin Woo headshot

 

Erin Woo

Edlin on his alternative to go away: “In the year after the initial WSJ articles came out, the company claimed that it would be able to prove that the technology worked and prove that those claims were not true. The company was unable to convince anyone that those claims were untrue and that its technology and science worked. That gave me serious doubts as to whether the company was capable of proving its technology worked.” He got here to the conclusion they might by no means be capable of show it, he stated.

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Erin Woo

Bostic: At Theranos, whose resolution was it to reveal what info to the press? Edlin: In my expertise, Elizabeth was the one one that communicated straight 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 evaluation 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 slightly than 2 hours. Somewhat than addressing this, Bostic appears to be stating that in different circumstances (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 e mail Downey introduced up, the place Holmes desires to place the language across the venous attract the principle physique of textual content. The language she wished known as venipunctures “uncommon.” Bostic factors out that venous attracts had been utilized in 40 p.c of the time at Walgreens.

Erin Woo headshot

 

Erin Woo

Bostic: Who had closing 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 indicate that the expertise carried out nicely? 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 demonstrate the Theranos technology. In some cases, tests were run. In others, tests weren’t run. In general, to show the functionality of the Theranos technology.”

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Erin Woo

Again from break, and Bostic says he has round half-hour left of cross-examination. Downey says that we’ll end with Edlin at present. 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 research was a prerequisite to medical 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 folks participated within the burn research. Edlin additionally doubles down on his earlier testimony that the army by no means used Theranos units on troopers.

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Erin Woo

one other e mail concerning 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.

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Erin Woo

Again from break and taking a look at a presentation Edlin helped put together for an investor. In an e mail questioning the accuracy of a declare in a single graph, Holmes wrote: “If they currently do refrigerate then we should reflect that so we are making an accurate claim.”

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Erin Woo

Downey is making an attempt to ascertain that using the demo app, introduced up by the federal government, isn’t misleading/malicious, stating that somebody might present up and never get their blood drawn and that there have been completely different protocols for various situations.

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Erin Woo

Downey is discussing the demo app, which as proven earlier than shields failures from the affected person. “You were not trying to deceive anyone in this demo process, correct? And you did not understand that anyone else at Theranos was trying to deceive anyone in this process?” Edlin agrees.

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Erin Woo

Shifting subjects to demos, after round an hour of questioning about Theranos’s army relationship. Round 10-15 folks 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 “seemed to function well in the environment,” 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 citing emails from Melissa Givens of U.S. Africa Command and former Theranos V.P. Daniel Younger indicating that the system carried out nicely in excessive temperatures in Africa. Yesterday, the federal government confirmed proof saying that the units couldn’t function over 82 levels.

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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 information was reliant on information you had gotten from scientists in the company, correct?” “Yes.”

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Erin Woo

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

Erin Woo headshot

 

Erin Woo

And — protection modifications the topic fully. We’re again to speaking about Theranos’s expertise as we start cross-examination.

Erin Woo headshot

 

Erin Woo

With that, we’re by means of with direct and onto cross. Testimony is scheduled to finish at 3 at present, so Edlin will seemingly proceed tomorrow.

Erin Woo headshot

 

Erin Woo

Edlin stated he was in conferences the place Balwani stated he would defer to Holmes. “Generally, she was the C.E.O., so she had the final decision-making authority.” Edlin stated he noticed them disagree about “certain topics.” 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 places of work subsequent to one another with glass partitions. They typically ate lunch collectively and had been in dialogue collectively, he stated, however nothing else stands out.

Erin Woo headshot

 

Erin Woo

We’re going by means of slides accepted by Holmes and despatched to the army for a 2012 burn research. 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 cause to doubt it. One exception: One bullet learn that almost all outcomes may very well be obtained in lower than 20 minutes, however Edlin testified that demo run occasions had been often 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 data from a finger-stick of blood or other micro-volumes of different sample types delivering higher quality data than previously possible.” Additionally: “Each Theranos device can run every test currently available through the traditional centralized or hospital laboratory infrastructure.” Edlin testifies: “I had no reason to believe 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 Prepare dinner. “Everything in this document was reviewed and approved by Elizabeth,” Edlin testifies. Holmes was extremely concerned in each dialogue/e mail communication he had with the army, he says.

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Erin Woo

Switching subjects to Theranos’s interactions with the army. Edlin helped help Theranos’s army and D.O.D. relationships. “The end goal for these communications was to set up a research program that would compare Theranos testing to the testing available to the military.”

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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 nicely.

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Erin Woo

Below the heading “Same Tests, a Whole New Approach”: “The actionable information you need, 1/1000 the size of a typical blood draw.” This web page additionally says “the highest levels of accuracy and precision.” Theranos’s lawyer flagged this language along side the web site.

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Erin Woo

Included in a binder despatched to Rupert Murdoch: “Theranos’s proprietary, patented technology runs comprehensive blood tests from a finger-stick and tests from micro-samples of other matrices, and generates significantly higher integrity data than currently possible.”

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Erin Woo

Edlin testifies that he would put together binders for traders. “Elizabeth asked to review them and once they were reviewed and approved … I would send them to investors,” he stated.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Edlin testifies that Holmes was “very involved and detail-oriented” in reviewing and approving Theranos’s advertising. “For the end product, and for what actually went onto the website, she did review that.”

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Erin Woo

Dec. 27, 2015, e mail from Holmes relating to a “VIP guest”: “You can say we do run those assays, but were not able to run them on this sample, apparently due to a human error in sample handling.” Nevertheless: We simply noticed an e mail from a Theranos scientist saying it was not human error. This e mail was with regard to a Forbes author who deliberate on writing about his expertise.

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Erin Woo

Relating to these outcomes: Bostic enters a Jan. 7 e mail from Tina Lin to Edlin, noting some points with the outcomes (some excessive, some low). “We have no sample for rerun since it was a short draw,” she wrote. Theranos started testing in wellness facilities over a yr in the past, Bostic notes.

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Erin Woo

Leaping forward to the Murdoch funding. Jan. 6, 2015, from Holmes: “I [sic] would be an honor to have you be part of our company.” Jan. 7 from Murdoch: “Thanks, Elizabeth. Enjoyed every minute of it. Any blood results? See you soon, Rupert”

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Erin Woo

E-mail from Edlin: “Unfortunately by the looks of the Thyroid panel results below it appears to have had major issues again.” Balwani: “To say this is deeply disappointing will be a gross under statement.” This was a few month earlier than the general public launch, Edlin testifies.

Erin Woo headshot

 

Erin Woo

We’ve spent the morning to this point taking a look at completely different e mail chains during which Daniel Younger instructed Edlin to vary or take away irregular take a look at outcomes from demo studies. 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). Primarily based 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 choose up with Edlin on Tuesday.

Erin Woo headshot

 

Erin Woo

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

Erin Woo headshot

 

Erin Woo

Edlin performed trainings for Walgreens workers and would give excursions round Theranos. “In advance of the tour, there were some areas of the labs that were 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 customer experience” for the Walgreens partnership, together with the shop’s branding and advertising in addition to software program utilized by sufferers and technicians. Edlin testifies that he was conversant in the Edison machines (3.0 and three.5), the MiniLab, and the Edison 4 sequence (the next-gen model of the Theranos units). The following-gen variations had been by no means used for medical affected person testing, he testifies.

Erin Woo headshot

 

Erin Woo

Up to now, Edlin has testified about Holmes’s work habits — she was within the workplace “all the time,” 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 of my closest friends.” He first met Elizabeth Holmes by means of Christian whereas Edlin and Christian had been at Duke.

Erin Woo headshot

 

Erin Woo

Daniel Edlin, a former senior mission supervisor at Theranos from 2011 to 2016 who labored straight 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 all of a sudden and she or he might should journey to the Midwest, and a good friend of Davila’s is critically ailing.

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Erin Woo

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

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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. Usually, the federal government is working to indicate that Wade’s line of questioning relied on assumptions.

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Erin Woo

We’re by means of 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 stating that Dhawan, as a part-time worker, delegated his tasks to completely different full-time Theranos workers. “No one was pretending you were there every day,” Wade continued. “You were there as needed, right?”

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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 turned lab director after Adam Rosendorff left.

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Erin Griffith

Movement to compel is denied, Parloff just isn’t required to show over his notes. Decide stated it doesn’t even should get into the problem of reporter’s privilege as a result of the protection hasn’t made a powerful 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 not about Mr. Parloff’s state of mind. It’s not a libel case against his subsequent article in which he corrected his first.” “He can only testify as to what Ms Holmes told 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 quarter-hour to go at present, 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 before 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 want to show the information he was pointed to. It doesn’t matter if it turns out to be correct or incorrect.”

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Erin Griffith

Onto the Parloff matter. Cline says the Holmes camp desires to Parloff’s reporting notes with the intention to present that Parloff “was colored by bias — a desire to blame any errors he made in his initial article on Ms. Holmes rather 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 things. He’s reporting and testifying about something someone else said or did that he covered. He really is akin to an expert witness who has collected information 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 “whatever was sent to me.”

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Erin Woo

Dhawan didn’t go to Theranos daily. 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 complete 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 understand this is a hardship for Mr. Carreyrou. He’s not the only one suffering a hardship. Ms. Holmes’s father is a witness. We may call him. He’s having to miss 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 is no such thing as a proof of that and that Decide 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 tell you at this point who we’re going to call as witnesses. We may. We may not put on a case. We may call Ms. Holmes. … I can certainly tell you we may call him.”

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Erin Woo

As anticipated, we at the moment are calling Dr. Sunil Dhawan, a dermatologist who turned Theranos’s lab director after Rosendorff left. After a number of days on Theranos’s partnerships with different corporations (Safeway, Walgreens), we’re now again to inside 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 leading her employees in a chant that says F You, Carreyrou. Obviously I’m abbreviating that.”

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Erin Griffith

Carreyrou lawyer: “We believe he’s being singled out because of his prior reporting and because of 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 advised they weren’t pregnant however had been in actual fact pregnant, that will have an effect on their expertise however wouldn’t be counted in survey outcomes.

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Erin Griffith

Decide: “I’ve not been following Mr. Carreyrou’s podcast, but as I understand it he’s been able to report on what’s going on and comment on what’s going on.” Decide asks what’s the issue?

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Erin Griffith

On the Carreyrou matter, the Justice of the Peace decide urged that he be categorized as an professional witness, “a pragmatic solution,” he stated. Holmes facet stated (understandably?) that that doesn’t make quite a 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 many others. He already supplied some recordings of interviews to each 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 occurring, there may be additionally a separate Zoom listening to now with a Justice of the Peace decide, Nathanael Cousins, over whether or not the journalist John Carreyrou will likely be allowed within the courtroom.

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Erin Woo

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

Usually, Downey appears to be taking a really cheap, 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 blissful.

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Erin Woo

Downey is actually making an attempt to spotlight affected person satisfaction to indicate that the partnership was a hit. Jhaveri pushes again, saying that affected person expertise was one necessary issue, however so was price of build-out, venous draw percentages, and many others. Jhaveri does concede that he doesn’t bear in mind getting destructive suggestions concerning the assessments being performed in venous draw kind.

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Erin Woo

Different paperwork confirmed that Walgreens didn’t embrace venous draw percentages amongst “key program risks” and that Jhaveri advised Walgreens colleagues to not talk about future market enlargement plans outdoors 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 along with her “two or three times at most.” (His primary level of contact was Balwani.)

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Erin Woo

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

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Erin Woo

After studying the texts, the federal government completed its direct examination of Jhaveri. We’ll choose 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/documents/21081045-holmes-balwani-texts

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Normal theme of Jhaveri’s testimony up to now: Theranos wasn’t hitting its targets relating to venous draw percentages, however Jhaveri was keen 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 e mail from Jhaveri, the place he wrote that “we have made unbelievable progress in the short 5 months.” Jhaveri nonetheless believed that Theranos was doing testing by itself units, he testifies. In the identical e mail, Jhaveri wrote that he desires to concentrate on bettering affected person expertise and “venous percent in the 10% range.” At that time, it was nonetheless round 40%.

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Erin Woo

Now taking a look at revised targets 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 diminished targets, 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 assessments would possibly at all times require venous attracts, however these assessments had been speculated to be much less widespread. A slide attributes the “higher number of venous draws so far” to “learning process around ordering patterns for Arizona,” not tech issues.

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Erin Woo

The share of finger stick attracts was “very important,” Jhaveri testifies. “That was the Theranos technology that we had signed a partnership on. … That was the actual magic that was so intriguing to us.”

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Erin Woo

Sufferers might obtain conventional lab work by way of venous or finger stick take a look at. Historically, labs would do venous attracts. Theranos, as we all know, promised to do the identical assessments on a small quantity of blood by means of 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 clients’ wait time and expertise degree. They had been additionally monitoring some lab measures, together with proportions of venous vs. finger stick assessments.

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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, format, coaching, buyer expertise.

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Erin Woo

In early 2014, he turned divisional vp of well being care providers, and the Theranos partnership turned a part of his tasks right now.

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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 mission 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.

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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 performed 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 realizing that they occurred. And we at the moment are performed with Amenta and onto Jhaveri.

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Erin Woo

Prosecutor John Bostic is taking Amenta by means of federal wire transfers despatched to Theranos, presumably to indicate that wire transfers had been made.

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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 present. There will likely be trial tomorrow and one of many witnesses will likely be Nimesh Jhaveri, former head of well being care providers at Walgreens.

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Erin Griffith

The following witness is Robert Amenta, deputy chief investigator on the New York Federal Reserve. We simply walked by means of an evidence of what the Fed does. U.S. Legal professional John Bostic: “So it’s a bank for banks.”

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Erin Griffith

In 2015, after the WSJ Theranos expose, Miquelon wrote an e mail to Holmes: “You are in my thoughts, hang in there. The haters are everywhere but your contribution to the world cannot be bottled up.”

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Erin Griffith

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

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Erin Griffith

On diligence, Miquelon says: “I would define diligence as unfolding over a couple of years — diligence continues and that’s one reason why you have a revised agreement and addendums to that.”

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Erin Griffith

Downy made the purpose that lots of the guarantees Holmes made about Theranos’s expertise 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 growth, 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 cost and ship the cash sooner.

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Erin Griffith

WOW this could be public data however I wasn’t conscious of it. Walgreens paid a $100 million “innovation fee” 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 brought on by 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 e 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 “just a young start-up” protection.

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Erin Griffith

We’ve seen a number of paperwork from pharma corporations endorsing or validating Theranos’s expertise. 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 gives a really acquainted story by now: He was excited by the promise of Theranos’s expertise. A lot of low cost assessments on a finger stick of blood. We additionally know by now that witnesses have to be very particular concerning the claims Holmes made as a result of protection will choose them aside.

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Erin Griffith

The following 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. “If you’re hitting strong revenue dollars relative to size and you’re making money, I would say you’re on your way.” (If that they had 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 an enormous dangerous company. “Do you differentiate between a start-up that is 7-10 years old vs one that is just starting out of a garage?”

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Erin Griffith

Downey making an attempt to make the case that Safeway’s inventory had had an enormous drop between previous to Burd leaving. He doesn’t take that bait. “In 20 years, that happens frequently.”

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Erin Griffith

We trip over the Theranos lab arrange as a take a look at on Safeway’s company campus. Burd was annoyed that it was speculated to have a “box,” 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 many others. on whether or not there was ever a tough deadline given for the launch.

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Erin Griffith

Plenty of concentrate on the diligence that Safeway did on Theranos and its expertise. Burd spoke with numerous medical doctors and lab administrators at Johns Hopkins, who stated that they had not had the Theranos machines lengthy sufficient to validate them. “The box was taken back 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 many others., to check with Holmes and Theranos. “You knew at the time that she was a very young entrepreneur. … And you knew the company was a start-up?”

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Erin Griffith

Simply e mail after e mail from Burd to Holmes expressing disappointment. “We are so good together when we collaborate, but I have never been more frustrated. I want to help, but you are making it difficult.”

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Erin Griffith

Burd emailed Holmes: “I can recall getting discouraged once is (sic) the last 61 years. That said I am getting close to my second event.” Do C.E.O.s at all times e mail one another this fashion?

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Erin Griffith

Burd emailed Holmes complaining about delays on launching Theranos assessments inside Safeway shops. “I feel like a jogger running in place waiting for the stop light to turn green.” One other e mail has the topic line “Becoming Discouraged.”

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Erin Griffith

Burd emailed Holmes in 2012 expressing considerations a few Theranos lab on Safeway’s campus. “I am genuinely concerned that Safeway’s lab reputation gets worse by the day.” He warned that if the issues continued for the comfortable launch, “both our brands will be at risk.”

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Erin Griffith

The decide known as the case “Our Holmes Matter” which I’m going to begin 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 courtroom 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, will likely be again on Tuesday.

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Erin Griffith

He continues: “I’ve had the privilege of meeting four U.S. presidents. When the president is in the room — let me tell you, the president owns the room. No one talks unless spoken to. Her style was warm, it was friendly. 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 top of the pile in terms of vision, in terms of command of the information, clearly in terms of delivery. She was always decisive.” “Whenever she was talking 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 straight 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 cause he’s speaking a few pressure of watermelon known as a Pureheart that has a really small rind that Safeway bought completely for a yr. 🍉

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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 “immediately interested in meeting Theranos, particularly the founder.” “It was a fascinating concept.”

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Erin Griffith

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

Decide Davila says no, that will be a separate “mini trial.” He provides, “I think it may actually enhance the damage you’re seeking to avoid but, hey, it’s your case.”

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Erin Griffith

Relating to the accusation that he stole commerce secrets and techniques by emailing himself recordsdata, prosecution asks, “Based on what you know about Theranos’s methods, would you have wanted other labs to use those methods?” “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 patient care and my integrity as a physician.”

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Erin Griffith

Now the alternate has comparable considerations, saying English just isn’t her first language and is worried she “could make a mistake in something.” “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 job 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 a bit tune and dance.

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Erin Griffith

💉 U.S. v. Holmes, Day 12 of ~2384972: We’ve dismissed a juror who says her views as a Buddhist will make it unimaginable for her to vote to convict. Three of 5 alternates stay. Later at present 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 top of Day 5 of Dr. Rosendorff’s testimony and so very deep within the blood testing weeds please ship assist

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Erin Griffith

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

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Erin Griffith

Attention-grabbing fashion of questioning asking the witness “You don’t recall those times when you lied and again and again?” “…No sir?”

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Erin Griffith

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

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Erin Griffith

Wade continues to drive on the level that Dr. Rosendorff left Theranos for extra money and the explanation he expressed considerations about its lab outcomes and requested to be faraway from its Clia lab was to begin his new job sooner.

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Erin Griffith

Now Wade is making an attempt to make use of Rosendorff’s resignation e mail — the fakest e mail any worker ever writes — towards him. “You wrote that it was a ‘tremendous experience’ and you ‘appreciated the opportunity to work with so many talented individuals’” Gotcha!

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Erin Griffith

Wade is making an attempt to make an enormous deal about how Dr. Rosendorff’s subsequent job after Theranos paid him extra. Dr. Rosendorff just isn’t having it. “I wanted to join a reputable company 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 if you’ve ever tried to apply for a job but it doesn’t serve you” to debate “fraudulent activity.” 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 essentially had a foot out the door the whole time?” “On occasion I would look at what other jobs were available.”

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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 during which Rosendorff seems to contradict his testimony concerning the frequency of issues at Theranos labs. “Problems come up in labs — every lab in America, probably every lab in the world — is not going to perfect, correct?” “Yes”

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Erin Griffith

Binder hijinks. Whereas flipping by means of all the varied emails Rosendorff asks somebody to assist him with the binder as a result of “it’s just opened up and it’s just [hand wave motion] pages everywhere.”

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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 supplied each side recordings of his on-record interviews with Holmes and Balwani.

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Erin Griffith

Rosendorff takes off his glasses and rubs his eyes as Wade cycles by means of numerous varieties exhibiting his signoff on assay validation from 2013.

Erin Griffith headshot

 

Erin Griffith

The supposed takeaway from the road of questioning, so far as I can inform, is that some assessments 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 position in setting Theranos’s lab insurance policies and QC testing with numerous emails.

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Erin Griffith

Decide Davila responds with a light-weight dig towards protection: “A couple of blue suits sitting next to them in a judge’s chambers, what could 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 need to redact and protection says they need to be there, to which the decide responds that that will be unnecessarily intimidating. Protection disagrees.

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Erin Griffith

Decide Davila stated a journalist contacted a physician who contacted the courtroom clerk to level out that one of many protection’s reveals included a affected person’s actual identify, which is a HIPAA violation.

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Erin Griffith

Holmes is right here in fact 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 corporations 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 a number of 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, on condition that they’ve out-of-state witnesses they need 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 e mail from Rosendorff to Balwani defending Theranos’s assessments in response to doctor complaints. “I was emphatic with Dr. Chen about our rigorous validation and quality process,” 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 often severe points.

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Erin Woo

Wade actually hammering dwelling this level on outlier elimination (which is smart — that is one thing that got here up rather a lot in earlier testimony for instance of Theranos manipulating outcomes).

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Erin Woo

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

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Erin Woo

Now onto one thing known as the “six tip policy,” the place there are six outcomes from one pattern. Two outcomes could 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 e mail from Younger, saying that they’re holding the outcomes of a research 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 e 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 “in the loop now.”

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Erin Woo

Younger replies that he up to date Adam over the weekend and agrees that “they should be running all decisions by Adam.”

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Erin Woo

6/3/14 e mail from Balwani to Younger: “Adam came by my office EXTREMELY frustrated that as a lab director he is not being kept in the loop.” “This information has to go through him. … Can you guys please touch base with Adam so he is in 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: e mail from Holmes’s assistant the place she writes that “Elizabeth has asked me to coordinate a CLIA meeting for this afternoon at 4 p.m.”

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Erin Woo

Now seeing Holmes’ calendar for five/29/14, the place she has “meeting 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 reveals.

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Erin Woo

Wade had Rosendorff affirm that he testified Holmes was much less involved than he was concerning the HCG points. Then, he confirmed a 4:45 p.m. e mail forwarded from Balwani to Holmes about HCG points. Holmes responded six minutes later, asking, “How did that happen?” 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 gives 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, regardless that 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 making an attempt to indicate that Theranos DID take Rosendorff’s considerations significantly. On 10/9/14, Balwani emailed Rosendorff, establishing 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 present’s cross-examination, Wade appears to be making an attempt to poke holes in Rosendorff’s credibility — stating occasions when he was gradual to reply to medical doctors, 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 gradual to reply. Rosendorff: “I was becoming frustrated at my inability to explain discrepant results.” Wade presses him that he simply wanted to name the physician again.

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Erin Woo

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

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Erin Woo

E-mail from Rosendorff after speaking to the physician: The physician is “puzzled” concerning the outcomes, however “the MD is extremely positive and excited about Theranos and wants us to ‘crush Quest Diagnostics.’”

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Erin Woo

There’s a ten/10/14 e mail from a customer support rep to Christian Holmes a few affected person who redid her labs at Stanford and received very completely different outcomes.

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

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Erin Woo

Up to now this morning, Wade’s cross has consisted of going by means of e mail chains discussing proficiency testing, seemingly to ascertain 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 an ordinary 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 up to now.)

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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 cost.

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Erin Woo

John Cline is doing the cross-examination for the protection. He’s beginning by going again by means of the chronology we coated 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 expertise.

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Erin Woo

4/2/12 e mail from Sung to Daniel Edlin, with Holmes and Younger copied. “We thought it would be great to keep her in the loop and aware of ongoing activities,” Sung stated. The e-mail says Celgene “had decided to simply wait until your next-gen machines are ready and then 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 greater 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 exhibiting the vary the place Theranos assessments 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 good news” for Theranos, Sung stated.

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Erin Woo

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

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Erin Woo

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

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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 slightly than serum, which Sung stated was “very nice.”

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Erin Woo

7/20/10 e mail from Sung to Holmes saying they weren’t in a position to validate Theranos’s assessments. The outcomes had been “close” in some circumstances 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 regarded like an oven. The thought you may do one thing so small and environment friendly on website was a “great idea,” 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 research the endpoints. She thought they might do it effectively with a really small quantity of blood, which might be a “huge advantage.”

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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 remedy of anemia and bone loss. Her position was to recommend proteins within the blood to measure that will 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 business. She labored in numerous biotech companies, 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 asking Dr. Victoria Sung. (Rosendorff will choose up on Friday.)

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Erin Woo

After a protracted dialogue of an e mail chain about proficiency testing, Rosendorff is completed with testimony for at present. (He has a battle this afternoon.) We’re going to take a 20 minute break after which choose up with a special 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 assessments.

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Erin Woo

Wanting now at an e mail from Rosendorff: “We are continually 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 record is correct,” 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 different 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 assessments), however not for Theranos assessments

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Erin Woo

a top quality methods presentation for 2014 from Langly Gee, Theranos’s high quality management supervisor. Wade is exhibiting failure charges for Edison high quality management assessments. “Something’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 continuous on this line of questioning, noting that Rosendorff testified about considerations in June 2014 however signed validation studies in Aug. and Sept. 2014.

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Erin Woo

Rosendorff testifies that he wouldn’t have continued signing validation studies 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 by means of 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 by means of the report.

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Erin Woo

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

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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 file.

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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 get paid the big bucks.” Rosendorff replies: “Not as big bucks as you get paid.” Cue the most important giggle of the trial to this point.

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Erin Woo

Wade is making some extent he’s made earlier than, that high quality management samples aren’t affected person samples — noting that “nothing bad happens” 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 e mail from Rosendorff to the CLIA lab crew asking them to discuss with very detailed quality-control insurance policies.

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Erin Woo

Balwani’s response: “I spoke with the teams today and they are all going to put in long hours and do whatever it takes to get this done tomorrow.” Rosendorff testifies: “I had many many battles with Sunny about what was needed versus what he was prepared to allow.”

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Erin Woo

Rosendorff added: “I do feel that it was very difficult to get answers from Daniel’s team.” In a later e mail, Rosendorff doubles down on needing the specificity research: “No they are required. Very important in fact.”

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Erin Woo

From the e-mail chain. Balwani: “As we know, we take these issues with seriousness. Why didn’t you raise these before to me when I was asking for any issues for months?” Rosendorff: “My apologies for the late feedback regarding our readiness …”

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Erin Woo

Notable frustration from Rosendorff after he tries to make some extent and Wade cuts him off: “I’m just reading emails and saying, yes, that’s what’s happening here.”

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Erin Woo

We’re now onto dialogue of the Walgreens launch. In a 11/10/13 e mail to Balwani, Rosendorff flagged points that wanted to be addressed earlier than the Walgreens launch. Wade is strolling him by means of 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 “ideal.”

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Erin Woo

Wade is making an attempt 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 e mail from Elizabeth Holmes about strolling the auditors by means of the lab. We’re now seeing the response: “All of the bulletin boards from the lobby to HR were covered with paper so the inspector could not view any of the drawings or items on the boards.”

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Erin Woo

Wade is beginning by asking questions concerning the Dec. 2013 CA Dept. of Public Well being audit that we mentioned yesterday. Wade’s going by means of a doc itemizing preparations for the audit as he tries to ascertain 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 choose again up at 9 a.m. Pacific Time tomorrow.

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Erin Woo

Vital content material: The custom-built laboratory info system was named Tremendous Mario. (Different enjoyable names: Jurassic Park = the lab with all the normal 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 concerning the significance of its PR and advertising 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 an enormous 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 forwards and backwards 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 may possibly go into validation.

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Erin Woo

We’re going by means of what assessments had been supplied through the family and friends launch. The one assessments run by means of 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 perform, 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 occurring once more now.

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Erin Woo

Within the e mail, Balwani writes, “We feel confident we can handle ~30 samples/day from this location at this point. And it has been 2 months since we have been out in WAG [Walgreens]. It’s time to go live.” Wade now making an attempt to make the purpose that that they had not beforehand been reside.

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Erin Woo

Discovered it! We at the moment are taking a look at an 11/7/13 e 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 mates/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 “limited friends and family” 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 e mail that we noticed in direct, Rose Edmonds (a growth scientist) says that not one of the assays are fully through validation testing. Rosendorff had testified that is important 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 appear 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 where it’s appropriate for senior management to have discussions about a subordinate?” Wade asks. Rosendorff appears confused.

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Erin Woo

Rosendorff additionally served as Theranos’s medical advisor. Holmes wouldn’t qualify for this both.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Wade: “Did you ever use a test on patients that you 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 legal obligations as lab director at Theranos?” Rosendorff: “Yes, I did.” Wade: “Did you offer lab tests that you knew at the time were inaccurate or unreliable?” Rosendorff: “No … I ordered the laboratory to cease testing.”

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Erin Woo

Two themes of cross up to now: Wade appears to be making an attempt to show that Rosendorff labored with the federal government in shaping his testimony, and is hammering dwelling that Rosendorff was legally and ethically accountable for the lab.

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Erin Woo

Rosendorff confirms that he was conversant in the rules. Wade is now asking a sequence of questions on Rosendorff’s obligations: “You are required to…?” Rosendorff says these are his obligations, however “I received pushback from management.”

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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 rules, presumably the stack of papers he’s holding. Davila, the decide: “You’re asking to admit the entirety of this document? It’s how many 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 accountable for what occurred within the lab, and Rosendorff stated sure.

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Erin Woo

Wade is continuous to attempt to choose aside the prosecution’s case, noting that they didn’t go in chronological order by means of 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 concerning 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 advised 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 was always instructed by the government to be truthful.” Wade asked: “Did they let you know to offer that reply?” Rosendorff: “No.”

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Erin Woo

Wade is going through a list of people and asking Rosendorff if he’s met each of them. His tone is far more aggressive than with previous witnesses.

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Erin Woo

We’re starting with cross-examination. Lance Wade, Holmes’s lawyer, is starting by grilling Rosendorff on how many times he’s met with the government.

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Erin Woo

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

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Erin Woo

Ultimately, Rosendorff said, he left after “endless meetings and conversations, very careful study of medical literature, late nights … great efforts on my part to improve the quality of testing at Theranos.”

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Erin Woo

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

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Erin Woo

Bostic pointed out the line “We will execute this year.” When did Theranos start testing? he asked. Rosendorff responds: 2013.

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Erin Woo

More texts from Holmes/Balwani! Holmes: “This year is our year. We can never forget this tiger.” Balwani: “I know, I am focused on it. We will execute this year.” Holmes: “I know. I’m focused on it too. And for our kids never forget who we are.”

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Erin Woo

On Rosendorff’s last day, he says Balwani offered a handshake, and he declined. Balwani gave him exit paperwork to sign. Balwani said he would be prepared to keep him on, but Rosendorff said it wasn’t worth the risk to his reputation.

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Erin Woo

Holmes forwarded it to Balwani: “We need to respond to him now and cut him Monday.” Rosendorff had already accepted a job offer at another lab and was planning on leaving — interpreted this as them trying to fire him right before he left.

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Erin Woo

Nov. 2014 email to Rosendorff asking for a redraw. Rosendorff forwarded this to Holmes/Balwani, and Balwani said the rep “jumped the gun” asking for a redraw. Adam forwarded this to Elizabeth: “I find Sunny’s response offensive and disingenuous. He should apologize.”

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Erin Woo

Gov’t making an attempt 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 are not investing in our company, they are investing in our destiny.”

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Erin Woo

“…how fundamental it is to all of us for you or any other employee never to do anything you’re not completely confident in.” Rosendorff says he disagrees with this, and we’ve seen emails exhibiting that he raised considerations.

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Erin Woo

Holmes’s response (pt. 1): “How sad and disappointing to see this from you. Outside of the fact you’ve never emailed me on any concerns you allude to there before but now email this, you know from every conversation we’ve ever had together …”

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Erin Woo

Now taking a look at Nov. 14 emails from Rosendorff. “I feel really uncomfortable with what is happening right now in this company. Is there any way you can get Spencer back on the CLIA [Clinical Laboratory Improvement Amendments] license and take me off? I am feeling pressured to vouch for results that I cannot be confident 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 conversation at that point.” A vacutainer draw is a non-Theranos retest.

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Erin Woo

He continued: “Further 100% honesty and transparency to the patient is essential. “My first duty is not to Theranos, but to the patient as per my Hippocratic oath “primum non nocere.” “I never said I wouldn’t talk to the MD.”

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Erin Woo

In an e mail to Christian, Rosendorff doubled down. “This is not a question of interpreting results — this is a question of the reliability and accuracy of the result.” “The most constructive thing at this point is to offer reliable and robust assays, not to spin.”

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Erin Woo

Nov. e mail from Rosendorff concerning the affected person name to Christian: “If you’re asking me to defend these values then the answer is no.” He was refusing to defend the accuracy of the consequence, 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

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

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Erin Woo

In a follow-up e mail from Holmes: “Kerry please delineate this based on what we did with the NY inspector recently and send 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 e mail from Holmes concerning the upcoming audit from the California Dept. of Public Well being: “Let me know if the path for walking the auditors in and downstairs has been cemented so we avoid areas that cannot 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 e mail to Elizabeth and Daniel, Christian wrote that Rosendorff already accepted the redraw. “Need to discuss messaging for my call with this doc, with regard to reason for the redraw,” Christian wrote.

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Erin Woo

Now taking a look at an e mail to Christian Holmes to approve a redraw, regardless of his not having a place within the medical 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 conflict between the messaging that the company wanted me to provide … and my duty as a physician” to precisely report outcomes when speaking with medical doctors, Rosendorff says.

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Erin Woo

In an e mail chain concerning the proficiency testing samples, Balwani wrote that Theranos’s validation has been “excellent in the past” and that “it is these PT samples that 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 folks together with Holmes, Theranos’s president, Ramesh Balwani, and the VP Daniel Younger. He felt like they gave “lip service” to this concern, 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: “Every time we got a physician complaint, every time our QC would fail, every time we had a spate of anomalous results, it raised great concerns to me about the accuracy of the testing process.”

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Erin Woo

We’re taking a look at an e 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 have not felt ‘right’ since the one increased 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 top 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 assessments, incl. the potassium, chloride and sodium assessments. In a ten/27/14 e mail, he wrote: “I am not sure of the clinical value of a sodium assay, in which the only time we can report it is when it is not critical”

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Erin Woo

We’re now entering into Rosendorff’s resolution to go away. He forwarded work emails with problems with concern to his Gmail account in 2014, testifying that “I wanted to protect myself.” He additionally says he began on the lookout 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 assessments, b) Rosendorff really helpful the corporate cease utilizing these assessments 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) assessments. Rosendorff says he “suspected” Theranos’ HDL was now not working as of Feb. 2014 and urged 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 e mail chains together with Holmes/Balwani about complaints/points that Rosendorff wasn’t included on. Rosendorff says he “absolutely” ought to have been included on the emails.

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Erin Woo

Rosendorff is testifying about points with the hCG assessments, which detect being pregnant. In June 2014, Christian Holmes wrote to Elizabeth: “Just fyi-hCG right now causing some serious issues and patient 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 “much more frequent,” and he “felt pressured to defend the company’s results to physicians,” he stated.

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Erin Woo

Theranos units failed so often that it raised questions concerning 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 realized 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 common composed self, he stated: She was trembling, knee was shaking, she was very upset.

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Erin Woo

In an e mail to Holmes, Rosendorff wrote that “A few more weeks to sort through these medical and logistical issues, and getting the proper level of training and staffing would help us tremendously.”nd staffing would assist us tremendously.”

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Erin Woo

An email from Rose Edmonds from 9 days before the launch says “none of our assays are completely through validation including clinical sample testing with fingerstick.” Under CLIA law, the tests need to be validated properly before they can be used for patient care.

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Erin Woo

Leading up to Sept 2013 commercial launch, there was “a lot of anxiety” about the appropriateness of using modified tests for patient care. The general mood of the company was “very optimistic,” but some were questioning why Theranos wasn’t using its own devices.

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Erin Woo

The downstairs Theranos lab, which contained the Theranos Edison devices, was called Normandy, Rosendorff said. According to Rosendorff, Balwani called the upstairs lab with conventional devices Jurassic Park: Balwani “believed the conventional devices were dinosaurs.”

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Erin Woo

Rosendorff starting strong with why he quit Theranos, incl. unwillingness of management to perform proficiency testing and feeling pressured to vouch for tests he wasn’t confident in. Also: “The company was more about PR and fundraising than patient care.”

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Erin Woo

The government is calling former Theranos lab director Adam Rosendorff today in the trial of Elizabeth Holmes. Per prosecutor John Bostic, this testimony is likely to take all day.

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Erin Griffith

Mattis is done and now a prosecutor is reading text messages between Holmes and Balwani while a forensics guy from PWC says “yes” and “correct.” I guess this is how they have to present this evidence but it is really really bizarre.

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Erin Griffith

On redirect: Why did Mattis initially support Holmes after the WSJ expose and then change his mind? There were too many surprises, he said. “We were unable to help her on the fundamental issues that she was grappling with if we only saw them in the rearview mirror.”

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Erin Griffith

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

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Erin Griffith

He additionally asks if Mattis knew Theranos was doing blood assessments 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 guage Theranos’s expertise 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 just came a point when I didn’t know what to believe about Theranos anymore.”

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Erin Griffith

After WSJ article, board members emailed Holmes concerning the allegations. Her response: Theranos was transitioning from working below one laboratory framework to a different. Mattis: “I was still confused.” At a minimal, “we had a reputation problem here and an integrity problem.”

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Erin Griffith

Ominous. After Theranos realized a few 2015 WSJ article by John Carreyrou that uncovered issues with Theranos’s expertise, there was a board assembly with a slide titled “Duty 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 e mail from Holmes instructing Mattis that, in an interview with Ken Auletta of The New Yorker, he can’t talk about “how our technology works (i.e. that there is a single device that does all tests)”

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Erin Griffith

Fortune revealed a protracted correction to that article, which I don’t bear in mind seeing from quite a lot of different shops that wrote constructive 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 making an attempt to coach my mind to not hear “amino acid” each time they are saying “immunoassay”

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Erin Griffith

Theranos received quite a lot of mileage out of a 2013 WSJ article! We see an e 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 by means of this board presentation, which has a slide claiming Theranos’s tech had been validated by 10 of the 15 largest pharmaceutical corporations, 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 primary source?” “The sole source.”

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Erin Griffith

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

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Erin Griffith

Did you settle for Ms. Holmes’s invitation to hitch Theranos’s board? “Yes I did, after asking why. I was not a medical 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 confident that if we got it in there, it would prove 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 e mail the place Mattis calls Holmes “young Elizabeth.”

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Erin Griffith

Holmes was the one telling him concerning the Theranos system’s capabilities, he stated. “I was frankly amazed at what was possible.” However he added: “That didn’t take the place of having the device prove itself.”

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Erin Griffith

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

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Erin Griffith

In a single e mail, Mattis advised Holmes he desires to discover a pilot mission to check Theranos machines alongside the military’s current methods to check. Mattis testified that he was very “taken” by the probabilities 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, “thank you for your note, young Elizabeth, and I wish you every success.”

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Erin Griffith

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

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Erin Griffith

Gould’s testimony lasted around 15 minutes – From behind a clear mask, she got emotional discussing her experience finding out via Theranos tests that, after three miscarriages, her fourth pregnancy was not viable. The happy ending is that it was. She had a baby. Adjourned!

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Erin Griffith

Defense wraps up by pointing out that Zachman’s practice had many many test results from Theranos beyond Ms. Gould that seemed to be fine. Judge Davila is eager to keep going, even though we are over on time today. Brittany Gould takes the stand.

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Erin Griffith

Defense works to chip away at the testimony by implying that the Theranos test results simply existed on a different scale and should have been “rebaselined.” Additionally famous that Holmes’s brother Christian, who responded to Zachman’s criticism concerning 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 throughout 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 as it stood out as such a red flag for the pregnancy.”

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Erin Griffith

Gould took 5 blood assessments, 3 from a subsidiary of Quest Diagnostics and a pair of from Theranos. She went on a rollercoaster, with the Quest take a look at exhibiting she was pregnant, the 2 Theranos assessments exhibiting a miscarriage, and a pair of extra Quest assessments exhibiting 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 3 miscarriages. She got here to see Gould after a constructive at-home being pregnant take a look at “to establish that yes, she is pregnant and look at the health of the pregnancy.”

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Erin Griffith

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

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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 (supplied they are not 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 concerning the reliability of Theranos’s assessments and mentioned them with Holmes.

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Erin Griffith

Extra dangerous boss/good boss content material: We see an e mail Gangakhedkar despatched to Balwani defending how onerous her crew was working + an e mail she despatched to her crew praising their lengthy hours. She then resigned from Theranos and Holmes tried to get her to remain, providing day without work.

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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] trying to make you feel guilty that you weren’t working?” “Yes” “You were frustrated by that?” “Yes.”

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Erin Griffith

We’re nonetheless doing cross-examination of Gangakhedkar.

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

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Erin Griffith

Zachman will now provide professional testimony on deciphering HCG assessments (a hormone used to establish being pregnant standing)

You count on 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 “yes” responses by Gangakhedkar) arguing that the purpose of R&D is encountering points and setbacks and fixing them.

“In R&D sometimes you have to fail before you can succeed right?”
“Yes.”

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Erin Griffith

We see an e mail the place Holmes requested Gangakhedkar for some testing knowledge forward of a gathering with the DoD. Gangakhedkar emails that Vitamin D knowledge is not prepared and Holmes writes asking for knowledge on different assessments. The purpose is, apparently, take 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 performed; there have been processes in place that positive appeared rigorous; the very folks stating issues additionally signed off on all of it.

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Erin Griffith

Up to now it’s mainly a name and response, the place Wade describes work of Gangakhedkar + Theranos’s lab, and Gangakhedkar replies “yes.” “Were you proud of that work?” “Yes.” “And others at the company were happy about that work as well?” “I think so.”

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Erin Griffith

Again within the San Jose courtroom at present 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, Decide Davila is ending Gangakhedkar’s testimony for the day and instructing jurors to not devour media content material concerning the trial, as at all times. The trial will resume on Tuesday — Erin Griffith will likely be on the courthouse to convey 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 research of Theranos’s assays, stating that the research promoted her work. “The Theranos system eliminates the need for a lab and provided quality data,” 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 dwelling when she left Theranos. “I was worried that I would be blamed,” she testified.

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Erin Woo

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

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Erin Woo

In an e 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 asking 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 “can be operated with minimal training” and that its outcomes have “precision and accuracy equivalent to traditional clinical 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 2-3 days slightly than the couple hours promised. “We had people sleeping in the car because it was taking too long,” she stated.

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Erin Woo

Cheung simply stated she “became concerned about a month in” with the vitamin D samples, in November of 2013. She was involved concerning the efficiency of the assessments and that they had been getting used on affected person samples.

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Erin Woo

Protection is completed with cross-examination, after exhibiting 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 quite a lot of questions on high quality management checks that occurred on the Theranos units. “There is a recognition that some errors would happen and this was the policy on how to deal with those 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 present from Erika Cheung, one of many key whistleblowers within the case.

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Erin Griffith

That’s it for at present.🩸💉⚖️

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Erin Griffith

Up to now the theme of the cross-exam of Cheung appears to be utilizing excruciatingly arcane particulars concerning the processes and procedures of the Theranos lab to indicate that its work was very sophisticated, involving numerous sensible, pedigreed folks.

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Erin Griffith

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

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Erin Griffith

Trial gear alert: A reporter introduced their very own binoculars to see the reveals 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 assessments 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” lots of of occasions, making me begin to wonder if decide is making an attempt 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 good mom!” at Holmes yesterday all of a sudden stormed out of the courtroom after Decide 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 present!

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Erin Griffith

Elizabeth Holmes’s entourage is down to simply her mother at present.

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