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SAN JOSE, California — Elizabeth HolmesThe founder of the failed blood test startup Theranos took the stand for the fourth day on Monday to defend himself in a fraud case billed as a test of newbies’ arrogance and hype.
Mrs. Holmes facing 11 charges Defrauding patients, doctors and investors by lying to them about Theranos’ technology and business dealings. He pleaded not guilty.
Before Theranos collapsed, it was the Silicon Valley darling that promised to revolutionize healthcare with cheaper, simpler blood tests that took just a few drops of blood. Ms. Holmes has raised nearly $1 billion from investors and has been heralded as the next Steve Jobs. But 2015 investigation It revealed from The Wall Street Journal that Theranos’ blood test technology was not working and the initiative was dissolved.
In the first 11 weeks of Ms. Holmes’ trial, Prosecutors called 29 witnesses. They said Ms Holmes and Theranos falsified reports, concealed the use of third-party blood testers, demonstrated fake technology, and exaggerated the company’s marketing claims.
To refute these arguments, Mrs. Holmes, 37, took the podium On November 19, in the first few days of his deposition, he blamed others, said he truly believed in Theranos’ technology, and suggested that their decision had been misunderstood. Ms. Holmes’ lawyer, Kevin Downey, portrayed his client as a bona fide entrepreneur whose actions to protect his company were falsified by prosecutors as fraudulent.
Here is what happened in Ms. Holmes’ statement:
Abuse accusations
Ms. Holmes closed her testimony Monday with bombing charges against her boyfriend of more than a decade, Ramesh Balwani, who works at Theranos and is accused of being a co-conspirator in the fraud. Mr. Balwani, who passed by Sunny, said he had been abused emotionally and physically.
Ms. Holmes said that Mr. Balwani often criticized her and checked what she ate and her schedule. He kept her away from her family because they were distracting. And she told him to “kill” his old self in order to be reborn as a new, successful entrepreneur.
He also accused her of rape. “He used to force me to have sex with him when I didn’t want to because he said he wanted me to know he still loves me,” she said through tears.
Mr. Balwani left the company in 2016 after a regulatory review revealed major problems with Theranos’ lab. Around that time, Mrs. Holmes moved, testified. “He wasn’t who I thought he was,” he said.
Ms. Holmes said her influence on him was so profound that she didn’t even know how to measure it. “It affected everything about who I am and I don’t quite understand that,” she said.
Mr. Balwani’s lawyers denied all harassment charges. Mr Balwani, who will face his own fraud case next year, pleaded not guilty.
Fake Verification Reports
A pivotal moment at the trial occurred on the third day of Ms. Holmes’ testimony, when she said it was hers. personally added pharmaceutical company logos To Theranos reports, which were later used to persuade investors and partners to work on his initiative.
Prosecutors arranged the reports as evidence that Ms. Holmes had lied about Theranos’ future. The reports bore the logos of drug manufacturers Pfizer and Schering-Plough, although neither company had a hand in the preparation or approval of the reports, and neither recommended the use of Theranos’ technology.
In her statement, Ms. Holmes said she added the drug manufacturers’ logos to the reports because “it was done in partnership with those companies and I was trying to convey that.” He argued that if he had known that investors and partners would view the logos as endorsements of drug manufacturers, he had no intention of deceiving anyone and would have done things differently.
Directing the Blame
Ms. Holmes spent most of her testimony arguing that others at Theranos were responsible for the company’s shortcomings.
Theranos’ lab director, Adam Rosendorff, is responsible for the clinical lab, and vice president Daniel Young is responsible for a partnership with the Walgreens pharmacy chain. He also pointed to the experience of the star-studded board, implying that they should have given him better advice.
What Ms. Holmes understood from Theranos’ technology was that it “performed well”.
When Mr. Downey brought up a study by scientists at Johns Hopkins University that concluded Theranos’ technology was “new and robust,” Ms. Holmes said: “Our team was really excited about it. These were some of the best lab experts in the world.”
Creating Intent
To convict Ms. Holmes, the prosecution must prove that she intended to commit fraud. Miss Holmes has repeatedly said on the podium that she has no intention of deceiving anyone.
He said he hid Theranos’ use of third-party devices—one of the prosecution’s biggest allegations against him—because he feared that others would copy Theranos’ changes to those devices. He also said it wasn’t his intention to hide that Theranos’ own machines wouldn’t be able to test as much as they claim.
“This was an invention we found out from our consultant, which we should keep as a trade secret,” Ms. Holmes said.
He added that Theranos’ marketing claims are aimed at establishing the start-up’s brand separately from its larger partners. Ms Holmes said she made these claims on the advice of leading advertising agency TBWAChiatDay and did not endorse any material she thought was false.
On Monday, Ms. Holmes said Theranos “absolutely not told” lab staff to hide anything about the launch during a 2013 review by regulators.
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