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SAN JOSE, California – Key informant against Theranos, blood test start collapsed under scandal He testified on Tuesday in 2018 company founder’s fraud case, Elizabeth Holmes.
Whistleblower Erika Cheung worked as a laboratory assistant at Theranos for six months in 2013 and 2014 before reporting laboratory testing issues at the company to federal agents at the Medicare & Medicaid Services Centers in 2015. The first day of his deposition appeared. What those who followed the Theranos saga likely already knew: The company’s famous blood-testing technology didn’t work.
In a crowded courtroom, Ms. Cheung said she had turned down other job offers from college to join Theranos because she was fascinated by Ms. Holmes’ charisma and inspired by her success as a woman in technology. Ms. Holmes said Theranos’ Edison machines could quickly and inexpensively distinguish whether people have various health ailments, using just a few drops of blood.
Ms. Cheung said of Ms. Holmes, “She was very frank and had a strong sense of conviction about her mission.”
But Ms. Cheung’s excitement faded after witnessing actions with which she disagreed in Theranos’ lab, she said. In some cases, outliers of blood tests were deleted to ensure Theranos’ technology passed quality control tests. Ms. Cheung was alarmed when she donated her own blood to Theranos, and tests on the company’s machines said she was deficient in vitamin D but not conventional tests.
Examining a menu of nearly 90 blood tests offered by Theranos, Ms. Cheung said that despite Ms. Holmes’ promises about Edison machines, they were only able to process a few of the tests listed. The rest would have to be done by conventional blood analyzers or sent to a diagnostic company, he said.
In the end, Ms. Cheung resigned amid suspicions about Theranos’ testing services.
“I was uncomfortable handling patient samples,” he said. “I didn’t think the technology we were using was sufficient to engage in this behavior.”
During Ms. Cheung’s testimony, Ms. Holmes’ lawyers objected to a wide variety of emails and other internal communications submitted as evidence by the prosecution. The two sides disagreed on the rules of arguments that could be used and the appropriateness of Ms. Cheung’s statement.
“The CEO is not responsible for every communication that takes place within a company,” said Lance Wade, attorney representing Ms. Holmes.
Prosecutor and US deputy attorney John Bostic argued that the documents showing Theranos’ internal affairs were relevant to the case, regardless of whether Ms Holmes’ name was on it.
Mr. Wade said that Ms. Cheung is an entry-level employee and hardly interacts with Ms. Holmes.
“As far as we know, the interview you just heard was the longest conversation he’s had with our client,” he said.
Despite everything, Miss Holmes, in a gray jacket and black dress, sat quietly, watching from behind a medical mask.
Ms. Cheung’s 2015 letter to the Centers for Medicare & Medicaid Services outlining problems with Theranos’ testing triggered a surprise review that caused the agency to close its labs. Tyler Schultz, another young employee in Theranos’ lab, also shared details About lab problems with The Wall Street Journal, which published the company’s statements. Mr. Schultz is also listed as a potential witness in the case.
Since her role in Theranos’ death, Ms. Cheung has been an advocate for ethics in technology. He gave a TED Talk about telling the truth to power and helped found Ethics in Entrepreneurship, a nonprofit that provides ethics education and workshops to startups, workers, and investors.
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