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Erin Woo headshot

 

Erin Woo

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

Erin Woo headshot

 

Erin Woo

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

Erin Woo headshot

 

Erin Woo

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

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Erin Woo

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

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Erin Woo

Kissinger is quoted on this Parloff article saying that “there is no such thing as a efficiency related to” Elizabeth, which is ironic, on condition that her public persona — the voice, the turtlenecks, the crimson lipstick, and so forth. — was such an enormous a part of the Theranos delusion!

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Wade asks Mosley to verify that he hadn’t carried out substantial analysis into the corporate at this level, and Mosley counters that he doesn’t suppose he would have had a technique to.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Mosley was VERY well-connected with Theranos’s traders. Per a slide entered into proof, he was the lawyer for the Walton household ($150 million invested), DeVos household ($100 million), Cox household, ($100 million), Andreas Dracopoulos ($25 million), Henry Kissinger ($3 million).

Erin Woo headshot

 

Erin Woo

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

We’re illegible handwritten notes Mosley took and it looks like deciphering historic scrolls

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Theranos advised RDV in October of 2014 that it could do $140 million in income that yr. It had zero. Prosecutor Robert Leach: “Did you in anyway dream that income for that yr could be zero?” She says no, “projections needs to be considerably shut.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Court docket for US v. Holmes is cancelled for at this time, damaged water most important. Again Tuesday! Weekly “wrap-up” of sooner or later of testimony coming quickly.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Wade: Have you learnt what a unicorn is?

Peterson: Are you able to clarify it?

Wade: You’re the funding skilled.

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

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Erin Griffith

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

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Erin Griffith

Plenty 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 position was in all of this. We didn’t wish to get him in hassle.”

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Erin Griffith

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

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Erin Griffith

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

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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 “That is what occurs whenever you work to alter issues. First they suppose you’re loopy, then they combat you, then you definately change the world.”

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Erin Griffith

We’re 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 we have now heard a lot about. “Did you imagine this report as ready by Pfizer?” “Sure.” Peterson says that endorsement was a giant consider investing.

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Erin Griffith

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

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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 much less emphasis on liquidity and extra emphasis on long run capital appreciation.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

When Peterson’s group requested Holmes in regards to the dangers of investing in Theranos, she stated the danger was within the “execution” of the Walgreens rollout. Was there a dialogue of know-how danger? 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 connected the notorious Fortune cowl story, writing “This morning I had one of the vital fascinating conferences I can recall with the ladies profiled within the connected Fortune journal 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 worrying for the media right here. Members of the press now policing bystanders to observe the principles (silence telephones and so forth) in order to not piss off the choose.

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Erin Griffith

(Initially 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 drawback. Jurors are spaced out and a few are sitting within the first rows of the viewers.)

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Erin Griffith

Ugh as soon as once more the jurors are pissed off with loud typing from the press gallery. The choose says if he will get one other grievance 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

Immediately’s first witness can be Lisa Peterson, who manages cash for the DeVos household.

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Erin Griffith

If there’s 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 needs to point out video clips of Elizabeth Holmes defending Theranos on Mad Cash and elsewhere after the WSJ expose.

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Erin Griffith

Cross-examination wrapped up. P.S. 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 massive 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 offers Holmes full management: “She has a agency grasp on the corporate — let there be no mistake.”

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Erin Griffith

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

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Erin Griffith

I’m undecided how effectively this clip truly makes the protection’s case, since she instantly says the funding cash will permit them to choose up work on these tasks “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 tasks with the intention to focus totally on the retail rollout.

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Erin Griffith

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

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Erin Griffith

One factor talked about on the investor name which has not been addressed — Holmes famous that there have been some early traders who had been searching for liquidity. Marvel if we 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 a giant a part of why he invested as a result of it spoke to a larger mission. “Theranos wasn’t nearly a possibility to become profitable … however to take action in a means that was helpful for heaps and much and plenty of folks.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

I forgot to tweet that one other juror obtained dismissed at this time for trigger. Kinda frightened I’m unhealthy luck, each time I come again from lacking a couple of days of the trial, one other one bites the mud.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

We’re going till 4 p.m. at this time however I doubt we get to 3 not to mention 4 witnesses. Tolbert testifies in regards to the clip we simply heard and his impression of what he thought Theranos was truly doing. (Blood testing machines — not a central lab.)

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Erin Griffith

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

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Erin Griffith

Sadly I’m not capable of see the jurors’ faces upon listening to Holmes’s voice for the primary time. Within the recording, she is giving the same old pitch about Theranos’s massive imaginative and prescient of making “the biggest lab within the nation” and to “change the fact of lab testing at this time.”

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Erin Griffith

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

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Erin Griffith

In 2013, Corridor Group invested $5 million into the corporate. The corporate had round 10 days to determine on the funding and the share worth had jumped to $75 a share. Tolbert recorded a pitch name with Holmes. He stated he’d been pissed off about not having a number 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 additionally means we are going to begin receiving extra communication from the corporate.” Tolbert stated he’d been wanting extra visibility into the corporate.

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Erin Griffith

Theranos additionally had promised traders it 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 likewise “heard some enjoyable tales from Don Lucas about his funding profession.” He additionally visited Theranos’s workplace and somebody gave him a cartridge.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

That is it for direct.

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Erin Griffith

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

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Erin Griffith

A humorous factor about TV trials is that they clarify the objections in regular language however in actual life they are saying issues like “objection, that is 702 territory” or “similar 406 from final 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 truthful to say in 2010 or after that Pfizer endorsed Theranos’s know-how or comprehensively validated Theranos’s know-how? Weber: “No”

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Erin Griffith

Now we see an 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 used to be well mannered clear crisp and patiently agency as she pushed again.” Writes that Holmes requested for different names at Pfizer to speak to and he “politely deflected.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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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 know-how. Consider that is the report the protection didn’t need proven to jurors, and the choose allowed Web page 1. Weber’s advice: “Theranos doesn’t at the moment have any diagnostic or medical curiosity to Pfizer.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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

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Erin Woo

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

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Erin Woo

Edlin on his alternative to go away: “Within the yr after the preliminary WSJ articles got here out, the corporate claimed that it could be capable to show that the know-how labored and show that these claims weren’t true. The corporate was unable to persuade anybody that these claims had been unfaithful and that its know-how and science labored. That gave me critical doubts as as to if the corporate was able to proving its know-how labored.” He got here to the conclusion they’d by no means be capable to 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 instantly with the press. Bostic: Did anybody make selections about what she was allowed to say? Edlin: I don’t know if she consulted with anybody.

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Erin Woo

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

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Erin Woo

Now, when Holmes weighed in on web site language, asking to say a 4-hour window moderately than 2 hours. Moderately 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.

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Erin Woo

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

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Erin Woo

Bostic: Who had 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} need to point out that the know-how carried out effectively? 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

Speedy-fire questioning from Bostic simply now. Edlin: The aim of the tech demonstrations was to “showcase or display the Theranos know-how. In some circumstances, assessments had been run. In others, assessments weren’t run. Usually, to point out the performance of the Theranos know-how.”

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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 this time. We’re now a doc concerning 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 gadgets 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 gadgets on troopers.

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Erin Woo

Taking a look at one other e mail in regards to the brochure for Walgreens, the place Christian Holmes is relaying suggestions from Elizabeth. All through cross, Downey has introduced up emails/cases 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 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: “In the event that they at present do refrigerate then we should always replicate that so we’re making an correct declare.”

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Erin Woo

Downey is attempting to ascertain that using the demo app, introduced up by the federal government, isn’t misleading/malicious, stating that somebody could 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 weren’t attempting to deceive anybody on this demo course of, right? And also you didn’t perceive that anybody else at Theranos was attempting to deceive anybody on this course of?” Edlin agrees.

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Erin Woo

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

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Erin Woo

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

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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 effectively in excessive temperatures in Africa. Yesterday, the federal government confirmed proof saying that the gadgets 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.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

With that, we’re via with direct and onto cross. Testimony is scheduled to finish at 3 at this time, so Edlin will probably proceed tomorrow.

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Erin Woo

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

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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.

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Erin Woo

We’re going via 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 purpose to doubt it. One exception: One bullet learn that the majority outcomes could possibly be obtained in lower than 20 minutes, however Edlin testified that demo run instances had been normally longer than 20 minutes.

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Erin Woo

Within the doc: “Theranos has created a point-of-service laboratory infrastructure that generates real-time knowledge from a finger-stick of blood or different micro-volumes of various pattern varieties delivering larger high quality knowledge than beforehand potential.” Additionally: “Every Theranos system can run each take a look at at present out there via the normal centralized or hospital laboratory infrastructure.” Edlin testifies: “I had no purpose to imagine it wasn’t true.”

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Erin Woo

We are actually a doc that was despatched to Main Steven Prepare dinner. “Every part on this doc was reviewed and accepted 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 matters to Theranos’s interactions with the army. Edlin helped help Theranos’s army and D.O.D. relationships. “The tip aim for these communications was to arrange a analysis program that may evaluate Theranos testing to the testing out there to the army.”

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Erin Woo

Edlin testifies that he doesn’t keep 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 effectively.

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Erin Woo

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

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Erin Woo

Included in a binder despatched to Rupert Murdoch: “Theranos’s proprietary, patented know-how runs complete blood assessments from a finger-stick and assessments from micro-samples of different matrices, and generates considerably larger integrity knowledge than at present potential.”

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Erin Woo

Edlin testifies that he would put together binders for traders. “Elizabeth requested to assessment them and as soon as they had been reviewed and accepted … I might ship them to traders,” 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 stage 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 vary” to “broad vary,” “highest high quality” to “prime quality”).

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Erin Woo

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

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Erin Woo

Dec. 27, 2015, e mail from Holmes concerning a “VIP visitor”: “You possibly can say we do run these assays, however weren’t capable of run them on this pattern, apparently as a consequence of a human error in pattern dealing with.” Nonetheless: 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

Concerning 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’ve got no pattern for rerun because it was a brief 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] could be an honor to have you ever be a part of our firm.” Jan. 7 from Murdoch: “Thanks, Elizabeth. Loved each minute of it. Any blood outcomes? See you quickly, Rupert”

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Erin Woo

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

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Erin Woo

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

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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.

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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 school 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 decide up with Edlin on Tuesday.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Edlin labored on the “front-end buyer expertise” 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 accustomed to the Edison machines (3.0 and three.5), the MiniLab, and the Edison 4 collection (the next-gen model of the Theranos gadgets). The subsequent-gen variations had been by no means used for medical affected person testing, he testifies.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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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 out of the blue and he or she could must journey to the Midwest, and a pal of Davila’s is critically unwell.

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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 staff 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 point out that Wade’s line of questioning relied on assumptions.

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Erin Woo

We’re via cross and into redirect. Wade’s cross-examination stayed on the identical theme: that Theranos had loads of certified staff, 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 duties to completely different full-time Theranos staff. “Nobody was pretending you had been there day by day,” Wade continued. “You had been there as wanted, proper?”

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Erin Woo

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

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Erin Woo

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

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Erin Griffith

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

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Erin Woo

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

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Erin Griffith

Parloff counsel David Korzenik: “The trial is just not about Mr. Parloff’s mind-set. It’s not a libel case towards his subsequent article through which he corrected his first.” “He can solely testify as to what Ms Holmes advised 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 this time, 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 skilled 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 crucial values with out ever seeing a crucial worth.

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Erin Woo

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Woo

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

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Erin Woo

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

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Erin Griffith

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

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Erin Griffith

Prosecution notes that it already introduced a movement to dam any arguments that there was coordination between the federal government and Carreyrou. Says there 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 inform you at this level who we’re going to name as witnesses. We could. We could not placed on a case. We could name Ms. Holmes. … I can definitely inform you we could name him.”

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Erin Woo

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

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Erin Woo

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Woo

Schenk is up for redirect. He notes that the affected person expertise surveys had been earlier than they obtained their take a look at outcomes, so in the event that they, for instance, had been advised they weren’t pregnant however had been the truth is pregnant, that may 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, however as I perceive it he’s been capable of report on what’s occurring and touch upon what’s occurring.” Decide asks what’s the issue?

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Erin Griffith

On the Carreyrou matter, the Justice of the Peace choose advised that he be categorized as an skilled witness, “a practical answer,” he stated. Holmes facet stated (understandably?) that that doesn’t make a number of sense.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Woo

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

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Erin Woo

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 glad.

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Erin Woo

Downey is absolutely attempting to spotlight affected person satisfaction to point out that the partnership was a hit. Jhaveri pushes again, saying that affected person expertise was one essential issue, however so was price of build-out, venous draw percentages, and so forth. Jhaveri does concede that he doesn’t keep in mind getting adverse suggestions in regards to the assessments being carried out in venous draw type.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Downey establishes that Jhaveri had little or no contact w Holmes; Jhaveri says he met along with her “two or 3 times at most.” (His most important 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 decide up with cross after the break.

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Erin Woo

Right here’s the complete doc with 36 pages of texts: https://www.documentcloud.org/paperwork/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 purpose, taking turns doing a stay 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 clarification for the odds by no means modified. Then, in late 2015, Jhaveri testifies, he learn a adverse article about Theranos. Walgreens stopped providing Theranos assessments in 2016.

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Erin Woo

Normal theme of Jhaveri’s testimony to this point: Theranos wasn’t hitting its targets concerning 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 gadgets.

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Erin Woo

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

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Erin Woo

Now revised targets from August for the Theranos partnership. For F.Y. 2015, they had been now aiming for 200 shops as an alternative 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 gadgets. He didn’t know that Theranos was testing sufferers’ blood on modified third-party gadgets. And nobody, together with Balwani, was glad 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 comprehend it was being examined on a modified industrial system, Jhaveri testifies.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Sufferers might obtain conventional lab work 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 via a finger stick, which Jhaveri calls “extraordinary.”

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Erin Woo

On the time, Theranos was in a single retailer in Palo Alto and two in Arizona. They had been monitoring prospects’ wait time and expertise stage. 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 building, design, format, coaching, buyer expertise.

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Erin Woo

In early 2014, he grew to become divisional vice chairman of well being care companies, and the Theranos partnership grew to become a part of his duties at the moment.

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Erin Woo

He re-engaged with the Theranos group 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/building 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 carried out 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 understanding that they occurred. And we are actually carried out with Amenta and onto Jhaveri.

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Erin Woo

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

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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! Immediately’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 this time. There can be trial tomorrow and one of many witnesses can be Nimesh Jhaveri, former head of well being care companies at Walgreens.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

On cross-exam, Holmes lawyer Kevin Downey is build up how massive 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 is likely to be public information however I wasn’t conscious of it. Walgreens paid a $100 million “innovation price” to Theranos for the privilege of partnering with them. The precise funding in fairness solely got here within the type of a $40 million convertible notice.

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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 choose, “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 “only a younger start-up” protection.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Burd attracts the road at income and profitability. “For those who’re hitting robust income {dollars} relative to measurement and also you’re earning money, I might say you’re in your means.” (If they’d requested me, I might have outlined a start-up as a personal venture-capital backed firm.)

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Burd emailed Holmes: “I can recall getting discouraged as soon as is (sic) the final 61 years. That stated I get near my second occasion.” Do C.E.O.s all the time 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 really feel like a jogger working in place ready for the cease mild to show inexperienced.” One other e mail has the topic line “Turning into Discouraged.”

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Erin Griffith

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

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Erin Griffith

The choose 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.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Burd is very complimentary of Holmes. “Not all C.E.O.s are alike. She would rise to the highest of the pile by way of imaginative and prescient, by way of command of the data, clearly by way of supply. She was all the time decisive.” “Every time she was speaking she owned the room.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

For some purpose he’s speaking a few pressure of watermelon known as a Pureheart that has a really small rind that Safeway bought solely 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 “instantly concerned with assembly Theranos, significantly the founder.” “It was an enchanting idea.”

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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 deliver up different investigations at labs the Rosendorff later labored at, he says.

Decide Davila says no, that may be a separate “mini trial.” He provides, “I feel it could truly improve the injury you’re looking for to keep away from however, hey, it’s your case.”

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Erin Griffith

Concerning the accusation that he stole commerce secrets and techniques by emailing himself information, prosecution asks, “Primarily based on what you realize about Theranos’s strategies, would you’ve gotten wished different labs to make use of these strategies?” “No.”

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Erin Griffith

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

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Erin Griffith

Now the alternate has comparable issues, saying English is just not her first language and is worried she “might make a mistake in one thing.” “It’s her future.” The choose 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 just a little track and dance.

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Erin Griffith

💉 U.S. v. Holmes, Day 12 of ~2384972: We’ve got dismissed a juror who says her views as a Buddhist will make it not possible for her to vote to convict. Three of 5 alternates stay. Later at this time Steven Burd, the previous C.E.O. of Safeway, will testify.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Fascinating type of questioning asking the witness “You don’t recall these instances whenever you lied and many times?” “…No sir?”

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Erin Griffith

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

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Erin Griffith

Wade continues to drive on the level that Dr. Rosendorff left Theranos for more cash and the rationale he expressed issues 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 attempting 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 ‘super expertise’ and also you ‘appreciated the chance to work with so many proficient people’” Gotcha!

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Dr. Rosendorff was additionally different jobs earlier than Theranos ever launched. Protection: “You primarily had a foot out the door the entire time?” “Once in a while I might take a look at what different jobs had been out there.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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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 either 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 via varied varieties exhibiting his signoff on assay validation from 2013.

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Erin Griffith

The meant takeaway from the road of questioning, so far as I can inform, is that some assessments at Theranos in some unspecified time in the future 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 varied emails.

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Erin Griffith

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

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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 choose plans to privately query every juror about what they could wish to redact and protection says they wish to be there, to which the choose responds that that may 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 displays 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 firms that Dr. Rosendorff labored for after Theranos.

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Erin Griffith

🩸 Again within the courtroom for U.S. v. Holmes. 🩸 The clerk is checking courtroom tickets after a couple of e-book 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. Court docket 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 wish to name subsequent. Wade says he expects it’ll take all day Tuesday. (As a reminder, the general public doesn’t sometimes get info on what witnesses are coming subsequent.)

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Wade actually hammering residence this level on outlier removing (which is smart — that is one thing that got here up so much 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 believed it was uncommon,” 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 coverage,” the place there are six outcomes from one pattern. Two outcomes might be discarded, and also you common the opposite 4. Younger developed this course of. Rosendorff says there was no formal SOP about outlier detection.

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Erin Woo

6/4/14 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 swap to vacutainer attracts and run on immulite. Wade notes that Rosendorff is “within the loop now.”

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

5/30/14: e mail from Holmes’s assistant the place she writes that “Elizabeth has requested me to coordinate a CLIA assembly 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 “assembly with Adam Rosendorff” listed. Rosendorff had testified that he had not met with Holmes.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

In at this time’s cross-examination, Wade appears to be attempting to poke holes in Rosendorff’s credibility — stating instances 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 used to be turning into pissed off at my incapability to clarify discrepant outcomes.” Wade presses him that he simply wanted to name the physician again.

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Erin Woo

We’re now seeing one other 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

Electronic mail from Rosendorff after speaking to the physician: The physician is “puzzled” in regards to the outcomes, however “the MD is extraordinarily optimistic and enthusiastic about Theranos and desires 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 obtained 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! Per week had passed by, and he hadn’t returned the cellphone name in regards to the affected person.

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Erin Woo

To date this morning, Wade’s cross has consisted of going via 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

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

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Erin Woo

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

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Erin Woo

The protection ended on the contract between Celgene and Theranos. Cline stated that the entire “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 via 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 know-how.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

We’re 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 methodology. “It’s not excellent news” for Theranos, Sung stated.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

7/20/10 e mail from Sung to Holmes saying they weren’t capable of validate Theranos’s assessments. The outcomes had been “shut” 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 seemed like an oven. The concept you possibly can do one thing so small and environment friendly on web site was a “nice concept,” she thought on the time.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Dr. Sung obtained a Ph.D at Georgetown after which did a postdoc at Stanford earlier than going into business. She labored in varied 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 looking Dr. Victoria Sung. (Rosendorff will decide 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 this time. (He has a battle this afternoon.) We’re going to take a 20 minute break after which decide up with a special witness for the remainder of the afternoon.

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Erin Woo

Now a doc from the American Proficiency Institute that offers “Acceptable” scores to the entire proficiency assessments.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

We’re now again to the place we began yesterday, discussing Rosendorff’s contact with the federal government. Wade asks Rosendorff if he remembers telling the federal government that Theranos machines used 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

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

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Erin Woo

Wade is continuous on this line of questioning, noting that Rosendorff testified about issues in June 2014 however signed validation stories in Aug. and Sept. 2014.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Rosendorff testifies that he by no means advised the CLIA group 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 staff at Theranos. Rosendorff says that he thought he ought to have been paid extra, given Theranos’s issues, however that is stricken from the report.

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Erin Woo

Rosendorff says he had issues about QC. Wade says he was paid to have issues. “That’s why you receives a commission the massive bucks.” Rosendorff replies: “Not as massive bucks as you receives a commission.” Cue the most important snigger of the trial to date.

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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 unhealthy occurs” to sufferers if a QC take a look at fails.

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Erin Woo

We are actually on to a mid-Jan 2014 e mail from Rosendorff to the CLIA lab group asking them to discuss with very detailed quality-control insurance policies.

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Erin Woo

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

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Erin Woo

Rosendorff added: “I do really feel that it was very troublesome to get solutions from Daniel’s group.” In a later e mail, Rosendorff doubles down on needing the specificity research: “No they’re required. Essential the truth is.”

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Erin Woo

From the e-mail chain. Balwani: “As we all know, we take these points with seriousness. Why didn’t you elevate these earlier than to me once I was asking for any points for months?” Rosendorff: “My apologies for the late suggestions concerning 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 simply studying emails and saying, sure, that’s what’s occurring right 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 via the e-mail chain with Balwani, level by level.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Court docket is in session for one more 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 an alternative ending for the day! Will decide again up at 9 a.m. Pacific Time tomorrow.

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Erin Woo

Essential content material: The custom-built laboratory info system was named Tremendous Mario. (Different enjoyable names: Jurassic Park = the lab with the entire 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 e-book and speaking in regards to 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 favored the thrill of Silicon Valley, which helped lead him to Theranos. (That Steve Jobs biography was a favourite of Holmes’s, too.)

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Erin Woo

We’re again from break! And we’ve taken a giant step again in time — now trying 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 out on every assay earlier than it might probably go into validation.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Discovered it! We are actually 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 buddies/household.

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Erin Woo

We are actually, as soon as once more, looking for the right pages within the MANY binders the protection gave Rosendorff.

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Erin Woo

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

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Erin Woo

We are actually 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 utterly via 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 are actually … asking about firm hierarchy? (Rosendorff reported on to Balwani, and Younger was additionally above him.) “Are there ever circumstances the place it’s applicable for senior administration to have discussions a few 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 training. Famously, she dropped out of Stanford. “Primarily based in your understanding of her background, would she be certified to be a CLIA supervisor or lab director? Rosendorff: “No, positively not.”

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Erin Woo

Wade says, and Rosendorff concedes, that in the end it was Rosendorff’s accountability if the 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 take a look at on sufferers that you just believed was inaccurate or unreliable?” Rosendorff: “No.” Did he ever present outcomes that he believed to be unreliable? “No.”

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Wade presses him on whether or not he 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 used to be all the time instructed by the federal government to be truthful.” Wade requested: “Did they inform you to offer that reply?” Rosendorff: “No.”

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

In an e mail to Christian, Rosendorff doubled down. “This isn’t a query of deciphering outcomes — it is a query of the reliability and accuracy of the consequence.” “Probably the most constructive factor at this level is to supply dependable and sturdy assays, to not spin.”

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Erin Woo

Nov. e mail from Rosendorff in regards to the affected person name to Christian: “For those who’re asking me to defend these values then the reply isn’t any.” 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

Taking a look at an e mail from a medical assistant involved that HDL and LDL (ldl cholesterol) readings will not be including up. That raises issues in regards to 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 mostly on what we did with the NY inspector just lately and ship that out.” Nobody was allowed to enter or exit the Normandy lab throughout the go to, Rosendorff stated. These instructions got here from Balwani.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Now 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 battle between the messaging that the corporate wished me to supply … and my obligation as a doctor” to precisely report outcomes when speaking with medical doctors, Rosendorff says.

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Erin Woo

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

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Erin Woo

There was no formal proficiency testing course of at Theranos, Rosendorff says. He says he raised these issues 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: “Each time we obtained a doctor grievance, each time our QC would fail, each time we had a spate of anomalous outcomes, it raised nice issues to me in regards to the accuracy of the testing course of.”

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Erin Woo

We’re an e mail from somebody who has been on coumadin, a blood thinner remedy, for 13 years. After switching to Theranos testing, her outcomes got here again low, and he or she elevated her dose because of this. “I’ve not felt ‘proper’ because the one elevated dose,” she wrote.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

For the previous hour, Rosendorff has testified about issues w varied assessments, incl. the potassium, chloride and sodium assessments. In a ten/27/14 e mail, he wrote: “I’m not positive of the medical worth of a sodium assay, through which the one time we are able to report it’s when it isn’t crucial”

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Erin Woo

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

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Erin Woo

Immediately’s theme appears to be a) Rosendorff was involved about defective assessments, b) Rosendorff advisable the corporate cease utilizing these assessments and c) Holmes/Balwani had been conscious however declined to alter 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 not working as of Feb. 2014 and advised reverting to FDA-approved gadgets, 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 “completely” 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: “Simply fyi-hCG proper now inflicting some critical points and affected person complaints.”

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

In an e mail to Holmes, Rosendorff wrote that “A number of extra weeks to kind via these medical and logistical points, and getting the correct stage of coaching and staffing would assist us tremendously.”nd staffing would assist us tremendously.”

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Erin Woo

An e mail from Rose Edmonds from 9 days earlier than the launch says “none of our assays are utterly via validation together with medical pattern testing with fingerstick.” Below CLIA legislation, the assessments should be validated correctly earlier than they can be utilized for affected person care.

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Erin Woo

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

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Erin Woo

The downstairs Theranos lab, which contained the Theranos Edison gadgets, was known as Normandy, Rosendorff stated. In response to Rosendorff, Balwani known as the upstairs lab with standard gadgets Jurassic Park: Balwani “believed the standard gadgets had been dinosaurs.”

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Erin Woo

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

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Erin Woo

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

He additionally asks if Mattis knew Theranos was doing blood 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 know-how and be a board director.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Ominous. After Theranos realized a few 2015 WSJ article by John Carreyrou that uncovered issues with Theranos’s know-how, there was a board assembly with a slide titled “Obligation of Loyalty.” We’re proven that slide, besides it’s comically redacted — all content material blacked out — and Mattis doesn’t keep 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 know-how works (i.e. that there’s a single system that does all assessments)”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

In a single e mail, Mattis advised Holmes he needs to discover a pilot mission to check Theranos machines alongside the military’s present programs 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. normal and former secretary of protection, was on Theranos’s board between 2013 and 2016.

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

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Erin Griffith

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

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Erin Griffith

Gould’s testimony lasted round quarter-hour – From behind a transparent masks, she obtained emotional discussing her expertise discovering out by way of Theranos assessments that, after three miscarriages, her fourth being pregnant was not viable. The glad ending is that it was. She had a child. Adjourned!

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Erin Griffith

Protection wraps up by stating that Zachman’s apply had many many take a look at outcomes from Theranos past Ms. Gould that gave the impression to be nice. Decide Davila is keen to maintain going, though we’re over on time at this time. Brittany Gould takes the stand.

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Erin Griffith

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

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Erin Griffith

Oh my, Theranos provided 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 because it stood out as such a crimson flag for the being pregnant.”

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Erin Griffith

Gould took 5 blood assessments, 3 from a subsidiary of Quest Diagnostics and a couple 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 couple 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 optimistic at-home being pregnant take a look at “to ascertain that sure, she is pregnant and take a look at the well being of the being pregnant.”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

We’re nonetheless doing cross-examination of Gangakhedkar.

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

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Erin Griffith

Zachman will now supply skilled testimony on deciphering HCG assessments (a hormone used to determine being pregnant standing)

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

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Erin Griffith

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

“In R&D generally it’s important to fail earlier than you possibly can succeed proper?”
“Sure.”

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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 carried out; 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

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

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Erin Griffith

Again within the San Jose courtroom at this time 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 eat media content material in regards to the trial, as all the time. The trial will resume on Tuesday — Erin Griffith can be on the courthouse to deliver you reside updates.

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Erin Woo

We are actually onto cross-examination. Holmes’s lawyer is questioning her about G.S.Ok.’s research of Theranos’s assays, stating that the research promoted her work. “The Theranos system eliminates the necessity for a lab and supplied high quality knowledge,” the G.S.Ok. memo stated.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

And, with that, Cheung has been dismissed. The federal government is looking Surekha Gangakhedkar now, a former Theranos group 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 gadgets “might be operated with minimal coaching” and that its outcomes have “precision and accuracy equal to conventional medical 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 moderately than the couple hours promised. “We had folks sleeping within the automotive as a result of it was taking too lengthy,” she stated.

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Erin Woo

Cheung simply stated she “grew to become involved a few month in” with the vitamin D samples, in November of 2013. She was involved in regards to 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 a number of questions on high quality management checks that occurred on the Theranos gadgets. “There’s a recognition that some errors would occur and this was the coverage on how you can take care of these errors,” he stated.

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Erin Woo

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

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Erin Woo

The replace you have all been ready for: The choose is STILL announcing it ther-AH-nos.

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Erin Woo

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

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Erin Griffith

That’s it for at this time.🩸💉⚖️

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Erin Griffith

To date the theme of the cross-exam of Cheung appears to be utilizing excruciatingly arcane particulars in regards to the processes and procedures of the Theranos lab to point out that its work was very difficult, 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 purpose for the failures: “The Edison gadgets didn’t work.”

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Erin Griffith

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

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Erin Griffith

Erika Cheung is again on the stand.

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

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Erin Griffith

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

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Erin Griffith

I ought to notice the girl who clapped and yelled “you’re a superb mother!” at Holmes yesterday out of the blue 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 this time!

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Erin Griffith

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

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