So the start-up fraud trial of the decade is about to begin.
Hope everyone’s ready, we’ve got three months of this then we start over again with Balwani.
In the meantime, here’s a thread of some stuff to read about it:
Hope everyone’s ready, we’ve got three months of this then we start over again with Balwani.
In the meantime, here’s a thread of some stuff to read about it:
The understated headline that started it all
Hot Startup Theranos Has Struggled With Its Blood-Test Technology
wsj.com/articles/thera…
Hot Startup Theranos Has Struggled With Its Blood-Test Technology
wsj.com/articles/thera…
Some longform:
A podcast abcaudio.com/podcasts/the-d…
A documentary hbo.com/documentaries/…
A book :)
A podcast abcaudio.com/podcasts/the-d…
A documentary hbo.com/documentaries/…
A book :)
A detailed timeline of everything:
cnn.com/2021/09/07/tec…
cnn.com/2021/09/07/tec…
A breakdown of a very important word in this case: “intent” - also a good video explainer
wsj.com/articles/thera…
wsj.com/articles/thera…
PS what’s that you say, you would like to inject 6 pages of text messages between holmes and balwani directly into your veins, fine, here have this
courtlistener.com/docket/7185174…
courtlistener.com/docket/7185174…
Ok, court has begun and Judge Davila spoke at length about about the defense's "premature" motion to exclude certain testimonies, which he deferred on, and the plans to post exhibits publicly as they're introduced.
Defense said their opening arguments will be 2 hours long ‼️
We are still waiting on a juror to arrive and one juror has introduced a hardship - their work won't pay them during jury duty.
The jury is seated. The judge says he plans to ask jurors every day whether they've been exposed to any outside information about the case.
The judge is really going to muscle through 6 months of trials emphasizing the "ah" in Ther-AHH-nos
The judge has described all 12 counts of wire fraud and conspiracy to commit wire fraud to the jury. He has given them all the instructions, including not to speculate as to why Balwani is not here.
US atty Robert Leach begins his opening arguments: "This is a case about fraud, and about lying and cheating to get money.”
Describing various details of fraud alleged in the US' indictment, Leach has a refrain: "Out of time and out of money, Elizabeth Holmes decided to lie."
Prosecution now dissecting "false and misleading" claims Holmes made in this 2013 WSJ article wsj.com/articles/SB100…
Prosecution shows Fortune cover story titled "This CEO Is Out For Blood" from 2014.
"Her deceit of reporters was an important way she executed her fraud."
The scheme brought her fame, it brought her honor, and it brought her adoration."
"Her deceit of reporters was an important way she executed her fraud."
The scheme brought her fame, it brought her honor, and it brought her adoration."
This trial is going to involve a lot of explaining terminology. Assays, "are a fancy word for a blood test." Clia labs are required for blood testing. Theranos' analyzers were known as Edison, 3.5, 4.0, 4s, MiniLab, and Theranos Sample Processing Unit, or TSPU
Theranos' defense is making opening statements now. So far the argument is: Holmes worked hard, cared a lot, and may have failed but was not a criminal. Also: there were others working there, and Theranos created valuable technology + patents.
Holmes lawyer Lance Wade: “The villain the government just presented is actually a living breathing human being who did her very best each and every day and she is innocent."
"Trying your hardest and coming up short is not a crime."
"Trying your hardest and coming up short is not a crime."
Defense arguing that Theranos failed because "a young CEO and her company confronted - and could not overcome - business obstacles that others saw that she naively underestimated." Also said being a CEO in Silicon Valley is hard.
Do the women dressed as Holmes - seem to be friends or relation as of them one was hugging Billy Evans - know they're trending??
Defense offers a Billy shoutout (he's in the front row) and a baby shoutout (not present).
Discussing how Holmes met Balwani. "He pursued a personal relationship with her as well. You'll learn that certain aspects of that relationship had a big impact on Ms. Holmes. You'll hear that trusting and relying on MR. Balwani as her primary advisor was one of her mistakes."
"Theranos didn’t see mistakes as crimes, they saw them as part of the path to success."
Now discussing in depth the Chiat Day ad campaigns and branding… “much of that work was unrelated to Elizabeth and the company”
Now we are getting the argument that theranos’ Investors were sophisticated and were eager to invest + take a risk.
Wade arguing that Holmes relied on balwani and theranos’ lab directors for ensuring accurate test results….
Now Wade says Theranos ran 8 million tests and is discounting future testimony from a hypothetical doctor describing 20 wrong results as 0.00025% of 8 million. (No mention that that two years of theranos results were voided…)
Ok, we heard from one witness - a former Theranos controller / accountant - but barely got into the meat of it. That will pick up Friday.
Judge Davila advises jurors once again to avoid media.
Judge Davila advises jurors once again to avoid media.
Our story on today: nytimes.com/2021/09/08/tec…
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