Elizabeth Holmes on Trial – The New York Times

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jury selection starts today In a federal criminal case against Elizabeth Holmes, founder of blood testing technology startup Theranos. Indicted in 2018, Theranos faces a dozen scams and conspiracy to commit electronic fraud for making false claims about blood tests and job prospects. He pleaded not guilty. Holmes, 37, faces up to 20 years in prison if found guilty.

The keynote speeches for the trial, which is expected to take three to four months, will begin next week. At the center of the judgment Erin Griffith and Erin Woo of The Times writeWhether Holmes deliberately misled investors about his company’s technology, or whether he believed his own lies and was manipulated by others.

The recently closed court filings provided a preview of what Holmes’ lawyers could say and who they could present in his defence.

Holmes can point his finger at others, Based on a request his lawyers made and made public last year. He’ll be tried on his own, but he’s not the only one accused of fraud. Her ex-boyfriend and former president and COO of Theranos Ramesh “Sunny” Balwani is also facing charges. (His trial will begin early next year; he also pleaded not guilty.)

Holmes told the court he could bring in an expert to discuss a “guilt-related mental state,” meaning his relationship with Balwani was “a model of abuse and coercive control.” Balwani’s lawyers denied the accusation in a filing.

The tech industry’s “imitate until you make it” culture is also being tested. Holmes was 19 when he founded Theranos in 2003. After leaving Stanford, he raised $700 million from investors and became the world’s youngest billionaire as Theranos’ value rose to $9 billion.

Holmes carefully developed his image, giving eye-catching words about Theranos’ revolutionary technology with an unusually deep voice, an intense gaze, and an intense gaze. black turtleneck uniform It was intended to wake up Steve Jobs. In his heyday, he presented himself as the ultimate ambitious, confident entrepreneur set out to change the world, a shared archetype that helps push startups in the tech industry to wealth and power. (His high profile could pose a challenge for jury selection, which is expected to roll out tomorrow or possibly longer.)

A refresher on who was who in the rise and fall of Theranos. In addition to Holmes and Balwani, some other important figures The saga includes:

  • Tyler Shultz and Eric Chungare former Theranos employees whistling over the company’s baseless claims.

  • David Boyes, the litigator who serves on the company’s board of directors and tries to shut down whistleblowers and reporters who question the company’s business practices.

  • Former members of Theranos’ star-studded board, including former defense ministers James Mattis and William Perryas well as former secretaries of state Henry Kissinger and George Shultz (grandfather of the aforementioned informant, Tyler).

  • John Carreyroujournalist who wrote final account fraudulent practices in the company.

America ended its 20-year military occupation of Afghanistan. The last US forces flew in late yesterday and it started as Secretary of State Antony Blinken said.new chapter” engagement. Political implications now at home for President Biden subject of investigationtrying to get it infrastructure and other spending plans agreed.

Hurricane Ida raises questions about the intensification of America’s oil industry. While initial reports suggest that most oil facilities have survived major damage, environmentalists said the storm How critical energy infrastructure is in an area that is increasingly exposed to extreme weather conditions. power outages expressed special concerns About the durability of a new natural gas plant in New Orleans.

The FTC intervenes in gas station mergers to lower prices at the pump. A letter from Lina Khan, head of the commission, argued for a change. approach to merger reviews in the industry, which he says enables the consolidation that leads to “price coordination and other collusion”.

China tightens restrictions on video games. For teens, online games are not allowed on school days and are limited to one hour per day on weekend and holiday evenings under new government rules responding to parent complaints. boundaries weren’t hard enough.

Starbucks is facing one of the most serious unionization efforts in its history. Employees at three locations in the Buffalo area the union petitioned to keep their vote, which can happen in a few weeks. The effort, which challenges Starbucks’ progressive image, follows a similar drive. Amazon a warehouse in Alabama and a strike by workers in food factories in five states.

AT&T explains new climate initiative today it claims it will provide companies with tangible ways to use 5G and other technologies to reduce carbon emissions.

The telecom giant will join forces with Microsoft, Equinix, Duke Energy and others to create the Connected Climate Initiative. AT&T says it and its partners plan to develop and distribute technology products to companies in the energy, transportation, and manufacturing sectors—including many of them. worst offenders for emissions – to reduce their carbon footprint. AT&T set a goal for the group to help businesses collectively eliminate one gigatonne of greenhouse gas emissions by 2035. (A gigaton is one billion metric tons, or about 15 percent of the total. greenhouse gases emitted every year in the USA)

AT&T’s initiative addresses growing concerns that 5G is bad for the environment. 5G requires more transmission towers than previous wireless technologies, which critics say will cause more problems. harm to the environment. Also, higher wireless data rates will lead to more energy-intensive data usage. Supporters, however, believe that 5G more energy efficient It will enable new monitoring technologies so that companies and individuals can monitor and reduce their energy use.

But talking is cheap. Michael Brune, executive director of environmental organization Sierra Club, told DealBook that “goal setting is important, but we need to see results more than anything else.” A great scientific report Shortly before the UN concluded that a warmer future is now inevitable, but with a rapid transition from fossil fuels and a drastic cut in emissions, there is a chance to slow further warming. AT&T said it will monitor how it reaches its gigaton target and will publish quantitative progress reports.

Do businesses need new technologies to reduce their carbon footprint? While AT&T’s initiative relies on companies implementing 5G alongside artificial intelligence and other future technologies, Brune said he believes companies already have enough tools to stop fossil fuel use. “We shouldn’t use fears about technological usability to slow us down,” he said, but “we should look forward to continuing innovation to make it easier and fairer.”

– SEC chairman Gary Gensler, a controversial practice on Wall Street when it comes to paying for order flow. Gensler’s comment Having a ban “on the table” in an interview with Barron’s caused Robinhood’s stock, which relied heavily on those payments, to drop 7 percent yesterday.

Private equity firms are taking over UK companies at their fastest rate in years, engaging in bidding wars for companies like Morrisons, the country’s fourth-largest supermarket chain. The Times reports Eshe Nelson.

So far this year, private equity firms have collectively offered $63.5 billion to buy British companies, according to Dealogic. That’s more at this stage of the year than they’ve been offering for British purchases in the previous 10 years. combined.

Blackstone, KKR and other major US private equity firms are expanding their London offices. Attracted across the Atlantic by relatively low prices for acquisition targets:

  • The UK’s average stock on the FTSE 100 is trading at 16 times its reported earnings, versus 27 times for the S&P 500.

  • The British pound has not fully recovered from its post-Brexit slump.

  • A general caution about American-style acquisitions in Britain has kept private equity firms at bay, but now that seems to be changing as investors look for places to splurge on cash.

The takeover battle over the Morrisons, which has its roots in the late 1800s, is a sign of the times. Two private equity firms, Fortress and Clayton, Dubilier & Rice, submitted bids for the retailer. At the same time, British politicians and some investors tried to block the deal, arguing that the acquisition firms were bad owners. (Purchasing interest in the defense industry has also raised national security concerns.)

The Morrisons seem ready to accept the roughly $10 billion offer from Clayton Dubiliers. This reportedly increases the value of other potential private equity targets, which may include: Sainsbury’sThe Morrisons’ retail rival. It’s also fueling a debate among MPs about whether the UK’s buying boom is a good thing.

Opportunities

  • Companies that entered the stock market through direct listing outperformed other public offerings on average (WSJ)

  • Russian internet giant Yandex is buying Uber’s stake in food technology, delivery and self-driving startups in a $1 billion deal. (Bloomberg)

  • The Treasury Department said a Chinese private equity firm’s acquisition of chip maker Magnachip poses “risks to national security”. (Reuters)

  • Apple acquired Primephonic, a classical music streaming service ahead of the launch of an Apple-branded music app focused on the genre next year. (CNBC)

  • Online jewelry retailer Brilliant Earth has filed for an IPO to capitalize on the growing interest in direct-to-consumer brands. (Bloomberg)

Policy

  • a CDC panel unanimously supported Pfizer coronavirus vaccine for 16-year-olds and the Pfizer board member said the company expects it to be vaccinated for children ages 5 to 11. ready for winter. (Reuters, CNBC)

  • The Department of Education is investigating five states for their bans on mask mandates that may violate civil rights laws. (NYT)

  • Chinese President Xi Jinping said his government’s campaign to address the “barbaric growth” of the tech sector is starting to make progress. (SCMP)

  • California lawmakers voted to extend the ban on employers’ gag with workers’ non-disclosure agreements to include most cases of harassment and discrimination. (AP)

best of the rest

  • Wall Street bankers scour Reddit and other online forums for investment advice. (WSJ)

  • Warren Buffett, 91, is showing signs of moving away from his old economy investments. (CNBC)

  • Sugar giant Mars aims to reduce company travel to half of their pre-pandemic levels and tells staff to board the plane for “purpose, not presence.” (London Times)

  • The benefits of remote work are captured by the few, not the majority. (NYT)

  • “How to Solve Any Problem Using Only Common Sense” (NYT)

We want your feedback! Please email your thoughts and suggestions. dealbook@nytimes.com.

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