Key takeaways from Week 7 of the Elizabeth Holmes trial.


On cross-examination, protection replays some parts of the investor name. On this one, Holmes discusses how Theranos was pausing its work on navy and pharmaceutical initiatives as a way to focus fully on the retail rollout.

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Erin Griffith

We’re now going by way of 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 buyers who had been in search of liquidity. Marvel if we’ll be taught particulars about whether or not anybody cashed out alongside the way in which and who they had been.

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Erin Griffith

Tolbert says Theranos’s purported navy work was a giant a part of why he invested as a result of it spoke to a better mission. “Theranos wasn’t nearly a chance to earn a living … however to take action in a manner that was helpful for tons and plenty and many individuals.”

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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.” Army? Confidentially, it’s “a giant deal for us.” Competitors? That’s why we’re so secretive. How are costs so low? We’re reworking the care course of, ergo financial savings.

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Erin Griffith

We hearken to an extended recording of Holmes answering questions from buyers about when the corporate will go public, whether or not it really works with the navy 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 enlargement — not R&D or tech improvement.

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Erin Griffith

I forgot to tweet that one other juror obtained dismissed as we speak for trigger. Kinda fearful I’m dangerous 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 way in which Theranos disrupts conventional phlebotomy with its finger prick checks. Tolbert testifies that that’s the reason he invested.

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Erin Griffith

We’re going till 4 p.m. as we speak however I doubt we get to a few not to mention 4 witnesses. Tolbert testifies in regards to the clip we simply heard and his impression of what he thought Theranos was really 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 traditional.

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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 standard pitch about Theranos’s huge imaginative and prescient of making “the biggest lab within the nation” and to “change the fact of lab testing as we speak.”

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Erin Griffith

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

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Erin Griffith

In 2013, Corridor Group invested $5 million into the corporate. The corporate had round 10 days to resolve on the funding and the share value had jumped to $75 a share. Tolbert recorded a pitch name with Holmes. He stated he’d been annoyed about not having lots 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’ll 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 buyers it could go public in 2008. 🙃

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Erin Griffith

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

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Erin Griffith

Tolbert had dinner with Holmes and Lucas the place they talked about Holmes’s imaginative and prescient and in addition “heard some 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 reveals the corporate turning into worthwhile in 2007. (Narrator: It didn’t…)

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Erin Griffith

Level for workforce “Theranos just isn’t a Silicon Valley firm as a result of it didn’t increase 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 cause to maintain considering Pfizer appreciated 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. Wouldn’t it be honest 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 telephone 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 stuffed with jargon certain 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 suggestion: “Theranos doesn’t at the moment have any diagnostic or scientific curiosity to Pfizer.”

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Erin Griffith

We start with a sequence of emails establishing why Weber was concerned with Theranos at Pfizer — his position was to make a suggestion to the corporate about its know-how. “We had been in search of 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

Appears like we’ll be listening to from our first investor (other than Walgreens): Brian Tolbert of the funding agency Corridor Group is prone to testify as we speak.

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Erin Griffith

🩸 Again in court docket for the fraud trial of Elizabeth Holmes. It’s wet, the prosecution plans to name 4 witnesses as we speak, 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 traditional, we’re beginning late as a result of the attorneys are combating over admitting a doc and there is a matter with a juror.

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Erin Woo

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

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Erin Woo

Edlin on his selection to depart: “Within the yr after the preliminary WSJ articles got here out, the corporate claimed that it could have the ability 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 severe 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 have the ability to show it, he stated.

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Erin Woo

Bostic: At Theranos, whose determination was it to reveal what data to the press? Edlin: In my expertise, Elizabeth was the one one that communicated immediately with the press. Bostic: Did anybody make choices about what she was allowed to say? Edlin: I don’t know if she consulted with anybody.

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Erin Woo

Bostic: Who did the ultimate evaluate of investor displays? Edlin: Elizabeth.

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Erin Woo

Now, taking a look at when Holmes weighed in on web site language, asking to say a 4-hour window slightly than 2 hours. Somewhat than addressing this, Bostic appears to be stating that in different instances (together with web site/investor displays), 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 principle physique of textual content. The language she wished known as venipunctures “unusual.” Bostic factors out that venous attracts had been utilized in 40 % 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 properly? Edlin: Sure. Bostic: How is that this function 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 exhibit the Theranos know-how. In some instances, checks had been run. In others, checks weren’t run. Basically, 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 as we speak. We’re now taking a look at a doc relating to the Restricted Goal Experiment with the U.S. Central Command, which Edlin testified once more didn’t happen. Completion of this research was a prerequisite to scientific use of Theranos gadgets by the navy, 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 navy. Bostic notes that solely 28 individuals participated within the burn research. Edlin additionally doubles down on his earlier testimony that the navy 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/situations the place Elizabeth has advocated for transparency and disclosure to counteract what we noticed in direct.

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Erin Woo

Again from break and taking a look at a presentation Edlin helped put together for an investor. In an e-mail questioning the accuracy of a declare in a single graph, Holmes wrote: “In the event that they presently do refrigerate then we must always mirror that so we’re making an correct declare.”

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Erin Woo

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

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Erin Woo

Downey is discussing the demo app, which as proven earlier than shields failures from the affected person. “You weren’t making an attempt to deceive anybody on this demo course of, appropriate? And also you didn’t perceive that anybody else at Theranos was making an attempt to deceive anybody on this course of?” Edlin agrees.

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Erin Woo

Shifting subjects to demos, after round an hour of questioning about Theranos’s navy relationship. Round 10-15 individuals labored on the workforce 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 perform properly 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 mentioning emails from Melissa Givens of U.S. Africa Command and former Theranos V.P. Daniel Younger indicating that the system carried out properly 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 sequence of questions round whether or not he ever took steps to place ahead any declare he knew to be false. Edlin says repeatedly that he didn’t. “That data was reliant on data you had gotten from scientists within the firm, appropriate?” “Sure.”

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Erin Woo

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

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Erin Woo

And — protection modifications the topic fully. 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 by way of with direct and onto cross. Testimony is scheduled to finish at 3 as we speak, 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 subjects.” After they disagreed, Edlin says there wasn’t at all times a choice that was made. He noticed occasions 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 usually 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 by way of slides permitted by Holmes and despatched to the navy for a 2012 burn research. After many claims, Bostic asks Edlin whether or not he knew on the time whether or not this was true or not. Edlin says repeatedly he didn’t know, however he had no cause to doubt it. One exception: One bullet learn that almost all outcomes could possibly be obtained in lower than 20 minutes, however Edlin testified that demo run occasions had been often longer than 20 minutes.

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Erin Woo

Within the doc: “Theranos has created a point-of-service laboratory infrastructure that generates real-time information from a finger-stick of blood or different micro-volumes of various pattern varieties delivering larger high quality information than beforehand attainable.” Additionally: “Every Theranos system can run each check presently accessible by way of the standard centralized or hospital laboratory infrastructure.” Edlin testifies: “I had no cause to consider it wasn’t true.”

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Erin Woo

We are actually taking a look at a doc that was despatched to Main Steven Prepare dinner. “The whole lot on this doc was reviewed and permitted by Elizabeth,” Edlin testifies. Holmes was extremely concerned in each dialogue/e-mail communication he had with the navy, he says.

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Erin Woo

Switching subjects to Theranos’s interactions with the navy. Edlin helped help Theranos’s navy and D.O.D. relationships. “The tip aim for these communications was to arrange a analysis program that may examine Theranos testing to the testing accessible to the navy.”

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Erin Woo

Edlin testifies that he doesn’t bear in mind Holmes asking him to take out language like this from investor binders, and says that he remembers displays like this being despatched to different buyers as properly.

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Erin Woo

Below the heading “Identical Checks, a Complete New Method”: “The actionable data you want, 1/1000 the scale of a typical blood draw.” This web page additionally says “the very best ranges of accuracy and precision.” Theranos’s lawyer flagged this language at the side of 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 checks from a finger-stick and checks from micro-samples of different matrices, and generates considerably larger integrity information than presently attainable.”

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Erin Woo

Edlin testifies that he would put together binders for buyers. “Elizabeth requested to evaluate them and as soon as they had been reviewed and permitted … I’d ship them to buyers,” he stated.

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Erin Woo

Bostic reveals 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 degree of accuracy.” In a four-page e-mail, Theranos lawyer Kate Beardsley raised accuracy questions on a few of this advertising, in some instances 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 top product, and for what really went onto the web site, she did evaluate that.”

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Erin Woo

Dec. 27, 2015, e-mail from Holmes relating to a “VIP visitor”: “You’ll be able to say we do run these assays, however weren’t capable of run them on this pattern, apparently because of a human error in pattern dealing with.” Nevertheless: We simply noticed an e-mail from a Theranos scientist saying it was not human error. This e-mail was with regard to a Forbes author who deliberate on writing about his expertise.

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Erin Woo

Relating to these outcomes: Bostic enters a Jan. 7 e-mail from Tina Lin to Edlin, noting some points with the outcomes (some excessive, some low). “We’ve 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 seems to be of the Thyroid panel outcomes under it seems to have had main points once more.” Balwani: “To say that is deeply disappointing will probably be a gross below assertion.” This was a couple of month earlier than the general public launch, Edlin testifies.

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Erin Woo

We’ve spent the morning thus far taking a look at completely different e-mail chains during which Daniel Younger instructed Edlin to vary or take away irregular check outcomes from demo experiences. 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 really 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 taking a look at an e-mail chain between Edlin, Daniel Younger, Michael Craig and others, making ready for a tech demonstration. They resolve to go along with the demo app, which “shields protocol failures from the shopper,” 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 carried out trainings for Walgreens employees and would give excursions round Theranos. “Prematurely 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 sequence (the next-gen model of the Theranos gadgets). The subsequent-gen variations had been by no means used for scientific 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 data 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 associates.” He first met Elizabeth Holmes by way of Christian whereas Edlin and Christian had been at Duke.

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Erin Woo

Daniel Edlin, a former senior venture supervisor at Theranos from 2011 to 2016 who labored immediately 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 she or he might need to journey to the Midwest, and a pal of Davila’s is critically sick.

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Erin Woo

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

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Erin Woo

The federal government is asking about Lynette Sawyer. Dhawan says he didn’t meet Sawyer and doesn’t know whether or not she went into the lab or noticed the Edison. Basically, 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 by way of cross and into redirect. Wade’s cross-examination stayed on the identical theme: that Theranos had loads of certified workers, and Dhawan’s minimal presence within the lab wasn’t a priority.

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Erin Woo

Wade is stating that Dhawan, as a part-time worker, delegated his obligations to completely different full-time Theranos workers. “Nobody was pretending you had been there every single 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 just isn’t required to show over his notes. Decide stated it doesn’t even need to 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 just isn’t about Mr. Parloff’s frame of mind. It’s not a libel case towards his subsequent article during 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 as we speak, we’re beginning in on cross-examination. Wade (who spent days on the stand cross-examining Rosendorff) is begins by establishing that Dhawan is a extremely educated skilled.

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Erin Woo

Dhawan says he doesn’t recall ever asking questions or asking a report back to be modified. He additionally signed a doc about reporting of essential values with out ever seeing a essential worth.

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Erin Woo

Rosendorff had signed the paperwork earlier than Dhawan did. “It gave me some reassurance that there had been some supervision 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 appropriate or incorrect.”

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Erin Griffith

Onto the Parloff matter. Cline says the Holmes camp needs to Parloff’s reporting notes as a way to present that Parloff “was coloured by bias — a need accountable any errors he made in his preliminary article on Ms. Holmes slightly 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 lined. He actually is akin to an professional witness who has collected data 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 every single day. He went to Theranos twice. He didn’t work together with sufferers, physicians or Theranos lab workers. He by no means handled Q.C. He thinks he labored 5-10 complete hours from November 2014 to June 2015. For this, Dhawan was getting paid $5,000 a month.

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Erin Griffith

Cline: “I perceive this can be a hardship for Mr. Carreyrou. He’s not the one one struggling a hardship. Ms. Holmes’s father is a witness. We might 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 isn’t any 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 let you know at this level who we’re going to name as witnesses. We might. We might not placed on a case. We might name Ms. Holmes. … I can definitely let you know we might 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 corporations (Safeway, Walgreens), we’re now again to inside Theranos workings.

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Erin Woo

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

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Erin Griffith

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

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Erin Griffith

Carreyrou lawyer: “We consider 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 check 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 steered that he be categorized as an professional witness, “a realistic resolution,” he stated. Holmes facet stated (understandably?) that that doesn’t make lots of sense.

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Whereas testimony is 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 will probably 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

Basically, Downey appears to be taking a really cheap, pleasant tone with this cross-examination (in distinction, for instance, with the way in which Wade began off cross with Rosendorff two weeks in the past). Details: opening shops is tough, however sufferers had been joyful.

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Erin Woo

Downey is admittedly making an attempt 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 value of build-out, venous draw percentages, and so on. Jhaveri does concede that he doesn’t bear in mind getting damaging suggestions in regards to the checks being completed in venous draw kind.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Downey establishes that Jhaveri had little or no contact w Holmes; Jhaveri says he met along with her “two or thrice at most.” (His principal 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 cause, taking turns doing a dwell studying. (Jhaveri is Balwani; Schenk is Holmes. This does certainly really feel type 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 chances by no means modified. Then, in late 2015, Jhaveri testifies, he learn a damaging article about Theranos. Walgreens stopped providing Theranos checks in 2016.

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Erin Woo

Basic theme of Jhaveri’s testimony so far: Theranos wasn’t hitting its targets relating to venous draw percentages, however Jhaveri was keen to maintain working with them. However, the federal government notes: What Jhaveri didn’t know was that Theranos was not doing testing by itself gadgets.

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Erin Woo

8/15/2014 e-mail from Jhaveri, the place he wrote that “we now have made unbelievable progress within the quick 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 enhancing affected person expertise and “venous % within the 10% vary.” At that time, it was nonetheless round 40%.

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Erin Woo

Now taking a look at revised objectives from August for the Theranos partnership. For F.Y. 2015, they had been now aiming for 200 shops as a substitute of 500, primarily based on the outcomes of the pilot. The venous draw percentages and the price of the buildout had been two causes for the diminished objectives, 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 happy with the venous draw percentages.

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Erin Woo

When Theranos did a finger stick draw, Walgreens thought that blood was being examined on a Theranos system. Walgreens didn’t realize it was being examined on a modified business system, Jhaveri testifies.

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Erin Woo

Walgreens agreed that some, extra advanced checks may at all times require venous attracts, however these checks had been speculated to be much less frequent. A slide attributes the “larger variety of venous attracts thus far” 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 “essential,” 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 may obtain conventional lab work by way of venous or finger stick check. Historically, labs would do venous attracts. Theranos, as we all know, promised to do the identical checks on a small quantity of blood by way of a finger stick, which Jhaveri calls “extraordinary.”

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Erin Woo

On the time, Theranos was in a single retailer in Palo Alto and two in Arizona. They had been monitoring prospects’ wait time and expertise degree. They had been additionally monitoring some lab measures, together with proportions of venous vs. finger stick checks.

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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 providers, and the Theranos partnership grew to become a part of his obligations at the moment.

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Erin Woo

He re-engaged with the Theranos workforce 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 venture 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 completed with direct examination. On cross (which takes roughly one minute), the protection establishes that Amenta didn’t have particular data of the wire transfers past realizing that they occurred. And we are actually completed with Amenta and onto Jhaveri.

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Erin Woo

Prosecutor John Bostic is taking Amenta by way of 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! At the moment’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 as we speak. There will probably be trial tomorrow and one of many witnesses will probably be Nimesh Jhaveri, former head of well being care providers 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 by way of an evidence of what the Fed does. U.S. Legal professional 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’re in my ideas, hold in there. The haters are all over the place 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 realizing 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 top of 2010. (It didn’t, and Walgreens didn’t terminate.)

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Erin Griffith

On diligence, Miquelon says: “I’d outline diligence as unfolding over a few years — diligence continues and that’s one cause why you could have 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 check in its personal lab.

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Erin Griffith

On cross-exam, Holmes lawyer Kevin Downey is build up how huge of a deal this effort was to Walgreens. Miquelon stated Walgreens employed a agency to give you a listing of 180 start-ups engaged on lab improvement, 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 may 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 corporations endorsing or validating Theranos’s know-how. I consider 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 provides a really acquainted story by now: He was excited by the promise of Theranos’s know-how. Plenty of low cost checks 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. “If you happen to’re hitting robust income {dollars} relative to dimension and also you’re getting cash, I’d say you’re in your manner.” (If they’d requested me, I’d have outlined a start-up as a non-public venture-capital backed firm.)

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Erin Griffith

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

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Erin Griffith

Downey making an attempt 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 check on Safeway’s company campus. Burd was annoyed that it was speculated to have a “field,” certainly one of Theranos’s blood analyzers, however for “secrecy” causes, didn’t get one. Finally 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 on. on whether or not there was ever a tough deadline given for the launch.

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Erin Griffith

Numerous deal with the diligence that Safeway did on Theranos and its know-how. Burd spoke with varied docs 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 on., to match 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 annoyed. 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 at all times e-mail one another this fashion?

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Erin Griffith

Burd emailed Holmes complaining about delays on launching Theranos checks inside Safeway shops. “I really feel like a jogger working in place ready for the cease gentle to show inexperienced.” One other e-mail has the topic line “Changing into Discouraged.”

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Erin Griffith

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

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Erin Griffith

The choose known as the case “Our Holmes Matter” which I’m going to start out 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 court docket 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, will probably 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 let you know, 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 when it comes to imaginative and prescient, when it comes to command of the data, clearly when it comes to supply. She was at all times decisive.” “At any time when 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 immediately 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 believe 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 cause he’s speaking a couple of pressure of watermelon known as a Pureheart that has a really small rind that Safeway offered 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 about assembly Theranos, significantly the founder.” “It was a captivating idea.”

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Erin Griffith

Protection counsel Wade is sort of giddy to argue that prosecution requested Dr. Rosendorff to match points at Theranos to different labs he labored at. Protection needs to be allowed to carry 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 believe it might really improve the injury you’re searching for to keep away from however, hey, it’s your case.”

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Erin Griffith

Relating to the accusation that he stole commerce secrets and techniques by emailing himself recordsdata, prosecution asks, “Primarily based on what you realize about Theranos’s strategies, would you could have 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 considerations, saying English just isn’t her first language and is anxious she “may 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 consider 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 slightly music and dance.

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Erin Griffith

💉 U.S. v. Holmes, Day 12 of ~2384972: We’ve dismissed a juror who says her views as a Buddhist will make it unattainable for her to vote to convict. Three of 5 alternates stay. Later as we speak Steven Burd, the previous C.E.O. of Safeway, will testify.

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Erin Griffith

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

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Erin Griffith

Decide Davila now says that protection has had 4 days to problem Rosendorff’s testimony and says “You’ve gotten challenged his confidence.” Permits protection to query about Rosendorff’s work post-Theranos, says to “probe evenly” 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 occasions if you lied and repeatedly?” “…No sir?”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Now Wade is making an attempt to make use of Rosendorff’s resignation e-mail — the fakest e-mail any worker ever writes — towards him. “You wrote that it was a ‘great expertise’ and also you ‘appreciated the chance to work with so many gifted people’” Gotcha!

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Dr. Rosendorff was additionally taking a look at different jobs earlier than Theranos ever launched. Protection: “You basically had a foot out the door the entire time?” “Occasionally I’d take a look at what different jobs had been accessible.”

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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 % of the cash recovered).

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Erin Griffith

Protection counsel Wade reads from a deposition during which Rosendorff seems to contradict his testimony in regards to the frequency of issues at Theranos labs. “Issues come up in labs — each lab in America, most likely each lab on the earth — just isn’t going to good, appropriate?” “Sure”

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Erin Griffith

Binder hijinks. Whereas flipping by way of all the assorted 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 all over the place.”

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

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Erin Griffith

Rosendorff takes off his glasses and rubs his eyes as Wade cycles by way of varied types displaying 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 checks 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 light-weight 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 may 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 court docket clerk to level out that one of many protection’s reveals included a affected person’s actual identify, which is a HIPAA violation.

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Erin Griffith

Holmes is right here after all with Billy Evans, her mother and an older man I can’t ID. Earlier than the jury arrives, the attorneys are arguing about whether or not they can talk about issues at corporations that Dr. Rosendorff labored for after Theranos.

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Erin Griffith

🩸 Again within the courtroom for U.S. v. Holmes. 🩸 The clerk is checking courtroom tickets after a 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, provided 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 usually get data on what witnesses are coming subsequent.)

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Erin Woo

7/19/14 e-mail from Rosendorff to Balwani defending Theranos’s checks 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 often severe points.

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Erin Woo

Wade actually hammering house this level on outlier elimination (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 permitted of this. “I assumed it was uncommon,” Rosendorff stated. After reminding Rosendorff of what he stated in his deposition, Rosendorff concedes that he permitted 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 choices 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 annoyed that as a lab director he’s not being saved within the loop.” “This data 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.

Erin Woo headshot

 

Erin Woo

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

Erin Woo headshot

 

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 check.

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Erin Woo

On 10/15/14, Balwani provides 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, although that was Rosendorff’s duty. Wade additionally notes that there have been no restrictions on what Rosendorff may talk about in the course of the assembly.

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Erin Woo

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

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Erin Woo

In as we speak’s cross-examination, Wade appears to be making an attempt to poke holes in Rosendorff’s credibility — stating occasions when he was gradual to answer docs, 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 annoyed at my lack of ability 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 every week had handed earlier than returning a physician’s name. Rosendorff says he had already spoken with him and didn’t understand 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 couple of affected person who redid her labs at Stanford and obtained very completely different outcomes.

Christian responds to say they’ll repeat the checks 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 telephone name in regards to the affected person.

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Erin Woo

To date this morning, Wade’s cross has consisted of going by way of e-mail chains discussing proficiency testing, seemingly to ascertain that Theranos did have a rigorous proficiency testing protocol in place.

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Erin Woo

We’re beginning off with proficiency testing. Wade will get Rosendorff to agree that he did write a typical working coverage for another 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 so far.)

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Erin Woo

There is no such thing as a 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 all the “success milestones” had been achieved, and funds had been made, though Sung stated she didn’t have direct data of the cost.

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Erin Woo

John Cline is doing the cross-examination for the protection. He’s beginning by going again by way of the chronology we lined 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 dangerous 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 taking a look at a scatter plot displaying the vary the place Theranos checks 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 entire blood information 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 dangerous. 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 will see a comparability between Theranos and QPS assays. Theranos solely used .25mL of blood in comparison with 2mL for QPS. Theranos additionally used entire blood slightly than serum, which Sung stated was “very 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 checks. The outcomes had been “shut” in some instances however not ok.

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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 thought you would do one thing so small and environment friendly on web site was a “nice thought,” she thought on the time.

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Erin Woo

Celgene entered into an association with Theranos. Her understanding was that Theranos was growing a platform to research the endpoints. She thought they might do it effectively with a really small quantity of blood, which might be a “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 trade. She labored in varied biotech corporations, 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 an extended dialogue of an e-mail chain about proficiency testing, Rosendorff is completed with testimony for as we speak. (He has a battle this afternoon.) We’re going to take a 20 minute break after which decide up with a distinct witness for the remainder of the afternoon.

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Erin Woo

Now taking a look at a doc from the American Proficiency Institute that offers “Acceptable” scores to all the proficiency checks.

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Erin Woo

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

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Erin Woo

After taking a look at his 2016 testimony (within the binders!), Rosendorff says he nonetheless doesn’t bear in mind telling the federal government that. “I assume the file is appropriate,” 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 various 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 (business checks), however not for Theranos checks

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Erin Woo

Taking a look at a top quality methods presentation for 2014 from Langly Gee, Theranos’s high quality management supervisor. Wade is displaying failure charges for Edison high quality management checks. “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 constant on this line of questioning, noting that Rosendorff testified about considerations in June 2014 however signed validation experiences in Aug. and Sept. 2014.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

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

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Erin Woo

Rosendorff testifies that he by no means advised the CLIA workforce to cease utilizing the Edison check altogether, however did on some particular checks.

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Erin Woo

Wade is now noting that Rosendorff was among the many highest-paid workers at Theranos. Rosendorff says that he thought he ought to have been paid extra, given Theranos’s issues, however that is stricken from the file.

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Erin Woo

Rosendorff says he had considerations about QC. Wade says he was paid to have considerations. “That’s why you receives a commission the large bucks.” Rosendorff replies: “Not as huge bucks as you receives a commission.” Cue the largest giggle of the trial thus far.

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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 dangerous occurs” to sufferers if a QC check fails.

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Erin Woo

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

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Erin Woo

Balwani’s response: “I spoke with the groups as we speak and they’re all going to place in lengthy hours and do no matter it takes to get this completed 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 workforce.” In a later e-mail, Rosendorff doubles down on needing the specificity research: “No they’re required. Crucial 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 increase these earlier than to me after I was asking for any points for months?” Rosendorff: “My apologies for the late suggestions relating to 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 by way of the e-mail chain with Balwani, level by level.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

We’re trying once more on the e-mail from Elizabeth Holmes about strolling the auditors by way of the lab. We’re now seeing the response: “All the bulletin boards from the foyer to HR had been lined with paper so the inspector couldn’t view any of the drawings or gadgets 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 by way of a doc itemizing preparations for the audit as he tries to ascertain that Rosendorff had duty 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 a substitute 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 data system was named Tremendous Mario. (Different enjoyable names: Jurassic Park = the lab with all the customary 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 appreciated the joy of Silicon Valley, which helped lead him to Theranos. (That Steve Jobs biography was a favourite of Holmes’s, too.)

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Erin Woo

We’re again from break! And we’ve taken 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 off on every assay earlier than it could actually go into validation.

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Erin Woo

We’re going by way of what checks had been supplied in the course of the family and friends launch. The one checks run by way of 9/28/13 had been two that didn’t run on the Edison, Rosendorff confirms. The primary Edison-based check, TSH, a measure of thyroid perform, was run 10/17/2013.

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Erin Woo

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

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Erin Woo

Within the e-mail, Balwani writes, “We 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 now have been out in WAG [Walgreens]. It’s time to go dwell.” Wade now making an attempt to make the purpose that they’d not beforehand been dwell.

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Erin Woo

Discovered it! We are actually taking a look at an 11/7/13 e-mail from Balwani to Rosendorff about opening their Palo Alto/Uni Ave location to the general public on the approaching Monday. It had beforehand solely been open to associates/household.

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Erin Woo

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

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Erin Woo

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

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Erin Woo

We are actually on to the business launch. In an e-mail that we noticed in direct, Rose Edmonds (a improvement scientist) says that not one of the assays are fully through validation testing. Rosendorff had testified that is important as a result of they had been only a week from launch.

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Erin Woo

Wade gave a hypothetical the place Rosendorff had rotten meals in his workplace, and subordinates complain to Balwani. Rosendorff continued to look 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 couple of subordinate?” Wade asks. Rosendorff appears confused.

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Erin Woo

Rosendorff additionally served as Theranos’s scientific guide. 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 finally it was Rosendorff’s duty if the checks failed and his duty to implement high quality management insurance policies and proficiency checks.

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Erin Woo

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

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Erin Woo

Wade: “Did you ever use a check 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 checks 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 so far: Wade appears to be making an attempt to show that Rosendorff labored with the federal government in shaping his testimony, and is hammering house that Rosendorff was legally and ethically liable for the lab.

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Erin Woo

Rosendorff confirms that he was accustomed to the rules. Wade is now asking a sequence of questions on Rosendorff’s obligations: “You’re 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 rules, presumably the stack of papers he’s holding. Davila, the choose: “You’re asking to confess the whole thing 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 constant to attempt to decide aside the prosecution’s case, noting that they didn’t go in chronological order by way of the paperwork. He nonetheless hasn’t actually requested about Rosendorff’s precise experiences at Theranos.

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Erin Woo

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

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Erin Woo

We’re now into questioning 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 at all times instructed by the federal government to be truthful.” Wade requested: “Did they let you know to present that reply?” Rosendorff: “No.”

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Erin Woo

Wade goes by way of a listing 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 occasions 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

Finally, Rosendorff stated, he left after “countless 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 will always remember this tiger.” Balwani: “I do know, I’m targeted on it. We are going to execute this yr.” Holmes: “I do know. I’m targeted on it too. And for our children always remember who we’re.”

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Erin Woo

On Rosendorff’s final day, he says Balwani supplied 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 repute.

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Erin Woo

Holmes forwarded it to Balwani: “We have to reply to him now and minimize him Monday.” Rosendorff had already accepted a job supply at one other lab and was planning on leaving — interpreted this as them making an attempt to fireside 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 making an attempt to make the purpose that Holmes/Balwani are actively courting investments at the same time as Rosendorff raises considerations about essential issues within the lab.

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Erin Woo

We’re now taking a look at Nov. 2014 texts between Balwani and Holmes, speaking about investments from Alice Walton and Rupert Murdoch. Balwani: “They aren’t 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 fully assured in.” Rosendorff says he disagrees with this, and we’ve seen emails displaying that he raised considerations.

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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 considerations 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 taking a look at Nov. 14 emails from Rosendorff. “I really feel actually uncomfortable with what is going on proper now on this firm. Is there any manner you will 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 crucial. “My first responsibility 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 decoding outcomes — this can be a query of the reliability and accuracy of the end result.” “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: “If you happen to’re asking me to defend these values then the reply isn’t any.” He was refusing to defend the accuracy of the end result, 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 are usually not including up. That raises considerations in regards to the accuracy of the check, Rosendorff testifies.

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Erin Woo

In a follow-up e-mail from Holmes: “Kerry please delineate this primarily based on what we did with the NY inspector lately and ship that out.” Nobody was allowed to enter or exit the Normandy lab in the course of 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 permitted the redraw. “Want to debate messaging for my name with this doc, with regard to cause for the redraw,” Christian wrote.

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Erin Woo

Now taking a look at an e-mail to Christian Holmes to approve a redraw, regardless of his not having a place within the scientific 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 responsibility as a doctor” to precisely report outcomes when speaking with docs, 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 previously” 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 considerations at a mid-2014 assembly to individuals together with Holmes, Theranos’s president, Ramesh Balwani, and the VP Daniel Younger. He felt like they gave “lip service” to this challenge, 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 considerations to me in regards to the accuracy of the testing course of.”

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Erin Woo

We’re taking a look at an e-mail from somebody who has been on coumadin, a blood thinner remedy, for 13 years. After switching to Theranos testing, her outcomes got here again low, and she or he elevated her dose consequently. “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 top of former lab director Adam Rosendorff’s direct testimony.

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Erin Woo

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

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Erin Woo

For the previous hour, Rosendorff has testified about issues w varied checks, incl. the potassium, chloride and sodium checks. In a ten/27/14 e-mail, he wrote: “I’m not certain of the scientific worth of a sodium assay, during which the one time we are able to report it’s when it’s not essential”

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Erin Woo

We’re now entering into Rosendorff’s determination to depart. 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 in search of one other job in mid-2013, shortly after becoming a member of Theranos.

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Erin Woo

At the moment’s theme appears to be a) Rosendorff was involved about defective checks, b) Rosendorff really helpful the corporate cease utilizing these checks and c) Holmes/Balwani had been conscious however declined to vary course.

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Erin Woo

We’re now on points with Theranos’s HDL (ldl cholesterol) checks. Rosendorff says he “suspected” Theranos’ HDL was now not working as of Feb. 2014 and steered 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 checks, which detect being pregnant. In June 2014, Christian Holmes wrote to Elizabeth: “Simply fyi-hCG proper now inflicting some severe 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 check 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 subject at Theranos, he testifies.

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Erin Woo

Rosendorff had a gathering w Holmes the place he expressed his considerations. She was very nervous and was not her traditional 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 by way of these medical and logistical points, and getting the right degree 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 fully by way of validation together with scientific pattern testing with fingerstick.” Below CLIA legislation, the checks 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 business launch, there was “lots of anxiousness” in regards to the appropriateness of utilizing modified checks 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 accordance with Rosendorff, Balwani known as the upstairs lab with typical gadgets Jurassic Park: Balwani “believed the traditional gadgets had been dinosaurs.”

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Erin Woo

Rosendorff beginning robust with why he stop Theranos, incl. unwillingness of administration to carry out proficiency testing and feeling pressured to vouch for checks 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 as we speak within the trial of Elizabeth Holmes. Per prosecutor John Bostic, this testimony is prone 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 “appropriate.” I assume that is how they need to 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 checks 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 judge 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 after I didn’t know what to consider 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 below one laboratory framework to a different. Mattis: “I used to be nonetheless confused.” At a minimal, “we had a repute downside right here and an integrity downside.”

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Erin Griffith

Ominous. After Theranos realized a couple of 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 bear in mind it.

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Erin Griffith

We see an e-mail from Holmes instructing Mattis that, in an interview with Ken Auletta of The New Yorker, he can’t talk about “how our know-how works (i.e. that there’s a single system that does all checks)”

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

Theranos obtained lots of mileage out of a 2013 WSJ article! We see an e-mail the place Holmes sends Mattis the hyperlink, in addition to a slide of it in a Theranos board presentation

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Erin Griffith

We’re going by way of this board presentation, which has a slide claiming Theranos’s tech had been validated by 10 of the 15 largest pharmaceutical corporations, alongside logos of FDA & WHO and a quote from Johns Hopkins.

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Erin Griffith

What had been your sources for details about the corporate? Mattis: “Ms. Holmes.” “Was she the 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, navy helicopters, clandestine operations…

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Erin Griffith

Mattis testified that Holmes was “very aggressive” at wanting the navy 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 attainable.” 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 navy use. Accuracy and reliability had been essential 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 venture to check Theranos machines alongside the military’s present methods to match. Mattis testified that he was very “taken” by the chances 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 taking a look at 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 checks that, after three miscarriages, her fourth being pregnant was not viable. The joyful 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 check outcomes from Theranos past Ms. Gould that appeared to be wonderful. Decide Davila is keen to maintain going, although we’re over on time as we speak. Brittany Gould takes the stand.

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Erin Griffith

Protection works to chip away on the testimony by implying that the Theranos check outcomes merely existed on a distinct 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 supplied Zachman a “corrected” model of the outcomes which merely eliminated a decimal level however the she says numbers nonetheless wouldn’t have made sense throughout the context of a viable being pregnant or a lack of one.

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Erin Griffith

“This circumstance was very impactful to me because it stood out as such a pink flag for the being pregnant.”

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Erin Griffith

Gould took 5 blood checks, 3 from a subsidiary of Quest Diagnostics and a pair of from Theranos. She went on a rollercoaster, with the Quest check displaying she was pregnant, the 2 Theranos checks displaying a miscarriage, and a pair of extra Quest checks displaying 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 check “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 checks 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 (offered they are not moles :). At the moment I met a retired paralegal who says he was on the Patty Hearst trial!!

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

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

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Erin Griffith

We’re nonetheless doing cross-examination of Gangakhedkar.

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

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Erin Griffith

Zachman will now supply professional testimony on decoding HCG checks (a hormone used to establish 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 you must fail earlier than you’ll be able to succeed proper?”
“Sure.”

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Erin Griffith

We see an e-mail the place Holmes requested Gangakhedkar for some testing information forward of a gathering with the DoD. Gangakhedkar emails that Vitamin D information is not prepared and Holmes writes asking for information on different checks. 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 completed; there have been processes in place that certain appeared rigorous; the very individuals 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 joyful about that work as properly?” “I believe so.”

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Erin Griffith

Again within the San Jose courtroom as we speak 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 at all times. The trial will resume on Tuesday — Erin Griffith will probably be on the courthouse to carry 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 offered high quality information,” 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 house when she left Theranos. “I used to be fearful that I’d 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 pressured 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 workforce had been working till 3:07 a.m., however that the Edison blood-testing gadgets Gangakhedkar’s workforce labored on had been “all sitting idle.” This was an instance of the stress they had been below, Gangakhedkar stated.

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Erin Woo

And, with that, Cheung has been dismissed. The federal government is looking Surekha Gangakhedkar now, a former Theranos workforce 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 scientific laboratory analyzers.” Neither is true, Cheung says.

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Erin Woo

Cheung stated they had been consistently having to recalibrate the machines, which made outcomes take 2-3 days slightly than the couple hours promised. “We had individuals sleeping within the automobile 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 couple of month in” with the vitamin D samples, in November of 2013. She was involved in regards to the efficiency of the checks and that they had been getting used on affected person samples.

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Erin Woo

Protection is completed with cross-examination, after displaying 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 lots 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 the best way to 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 saying 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 as we speak from Erika Cheung, one of many key whistleblowers within the case.

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Erin Griffith

That’s it for as we speak.🩸💉⚖️

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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 sophisticated, involving plenty of good, pedigreed individuals.

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Erin Griffith

Cheung testified that in conferences about high quality management failures, Theranos’s lab administrators ignored the obvious attainable cause 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 reveals on the TV screens.

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Erin Griffith

Erika Cheung is again on the stand.

She described Theranos’s apply of demoing blood checks 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 now have heard attorneys and witnesses pronounce “Theranos” a whole bunch of occasions, making me begin to wonder if choose is making an attempt to mess with us by sticking to his “ther-AHHHHH-nos” pronunciation.

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Erin Griffith

I ought to notice the lady who clapped and yelled “you’re a very good 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 may trigger a mistrial. I don’t see her right here as we speak!

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Erin Griffith

Elizabeth Holmes’s entourage is down to only her mother as we speak.



Key takeaways from Week 7 of the Elizabeth Holmes trial. Source link Key takeaways from Week 7 of the Elizabeth Holmes trial.

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