#ElizabethHolmes trial day 18:

More Dan Edlin. Defense attorneys told the judge yesterday they may cross the former sr. project manager for most of the day today.

Then we will get Dr. Shane Weber, director of diagnostics at Pfizer who once evaluated Theranos's tech.
Defense + prosecution continue to debate the admissibility of an internal Pfizer report which contains an "unfairly prejudicial" assessment of Theranos' tech, according to defense attorneys.
Prosecutor Robert Leach called the document a "A definitive absolutely not," to moving forward with Theranos.
Leach said that the doc is key because #ElizabethHolmes allegedly claimed Pfizer validated their technology, but Pfizer did not validate the technology — and the report is evidence of "falsity of the statements."
Defense attorney John Cline argued he had no problem with the witness testifying Pfizer didn't validate Theranos's tech, but that this report itself is "unfairly prejudicial"
"It is perfectly clear that Dr. Weber didn't like Theranos," Cline said, adding the document included "pejorative characterizations."

Another key element of Cline's argument, is that the document was never communicated to Theranos. It was an internal Pfizer record.
Holmes and Weber also had an around one hour phone call— Cline concedes that could be a subject of the government's examination.

"I don't have any problem with his bottom line conclusion that [Weber] was unsatisfied," Cline said.
“I don’t understand why we need to sanitize [his] words,” Leach told Judge Davila.

Cline had taken issue with the word "evasive" which he mentioned Weber could characterize Holmes as.
Judge said he will reserve his ruling. We will likely find out before Weber testifies.
Edlin is on the stand. Defense attorney Kevin Downey is back for cross.

He brings up the "Burn" study. The title of the study was shown to the jury:

"High-volume hemofiltration in adult burn patients with septic shock..."
The study began before Edlin joined #Theranos, as Downey noted yesterday and highlighted again this morning.
Apr 27, 2012 email from Melissa Givens of U.S. Africa Command to #ElizabethHolmes and Edlin:

"I have several trips to Africa coming up...and really want to test the equipment/process and then move forward with fielding it for full time use if the test runs go well," she wrote.
Then in June, Edlin writes Givens with logistical questions, from Theranos scientists:

"How will the device be transported in the field? ...What kind of conditions might be on the medevac from Germany to Uganda?" he wrote.
Givens responds with logistics the device will go through to get to Africa, as Downey put and Edlin agreed. She indicated African temperatures could reach 110 degrees.
Edlin passes it along to Daniel Young — who ran some tests.

"48 hours of continual testing of the reader at 110 deg F completed successfully tonight. We ran 100 protocols sequentially – so I feel very good about reliability for this deployment," he wrote, as downey highlighted.
Downey conceded the "study was not designed to conduct actual blood testing on patients," but it was designed to "[test] the viability of the device in a deployed environment."
On July 26 Givens wrote the #Theranos team:

"The machine traveled well and functioned well. My only complaint is the touch screen – very frustrating," she wrote, as Downey highlighted.

“Device seemed to function well in the environment”
Givens hoped to garner funding for a full proposal, emails showed.
Gov't made claims yesterday about the device's functionality in high temp. conditions:

BOSTIC: IS THIS INDICATING THAT THE EDISON NEEDS TO BE KEPT IN A TEMPERATURE RANGE OF 72 TO 82 DEGREES TO FUNCTION PROPERLY?

EDLIN: THAT SEEMS TO BE WHAT THIS DESCRIPTION INDICATES, YES
(Yesterday's line continued):

BOSTIC: AND DOES THE MILITARY IN THE MIDDLE EAST AND IN AFRICA OPERATE IN SOME AREAS WHERE IT GETS MUCH COLDER THAN 72 DEGREES AND MUCH HOTTER THAN 82 DEGREES, IF YOU KNOW?

EDLIN: I KNOW THAT IT GETS MUCH HOTTER.
Downey is now taking Edlin through his visit to the MacDill Airforce Base on which he brought the Theranos tech in 2013.

Bostic questioned him on it yesterday -- getting Edlin to testify no clinical testing was done on that trip, but it was evaluated for security purposes.
Downey brings in new context:

"[Do you] recall them saying they thought the device was too big?" he asked

"Yes, too big and too heavy," Edlin responded.

(Yesterday Downey showed us the 4.0 which Edlin testified was the device they were referring to )
"In response to that advice from the military, did theranos begin working on a specialized military device?" Downey asked.

"Yes the 4s," Edlin replied

#ElizabethHolmes #theranos
Edlin wrote US CENT COM on 2/27/2013

"As per our previous discussions the 4s devices we are shipping have been specially built for the purposes of our LOE," he wrote.
"...as a rapidly growing company we are managing these timelines as best as possible while making sure that the integrity of our products and program goals are not compromised," Edlin continued.
We heard about this yesterday — the project was deferred until Aug. 1, 2014.

Downey brought that up again on cross.

-You had a number of duties that were more important

-And this was an environment that was very hectic

-You observed ms holmes working very hard every day
(Edlin agreed to all)
Downey showed a Feb, 2013 email between Special Operations Command and #Theranos modifying the agreement between the parties

In Apr. 2013 another email from SEO, asking for an update on the devices.

Edlin asked for a phone call. He followed up in May and July.

(no response)
Moving on to demos.

Downey elicits that many scientists were involved "in one way or another" with the demos.

"Dr. young was the technical lead for the demos," Downey asked.

"He ultimately reviewed and approved all the results for the demo" Edlin replied
-He would work with the scientists to get ready for the demos

-And if any scientific or technical issues arose he was the one who addressd it

(Edlin noted in addition to Young other engineers could would also address those issues.)

#ElizabethHolmes
Downey established sometimes demos were done away from Theranos — at others offices.

“Mens’ health cartridge demo on 7.16 in Chicago” is the subject of the Aug. 1, 2012 email we are looking at.

Balwani wrote the email to many on the #Theranos team (I count 19 names)
Downey asked if all of those names had a hand in the demo

Edlin wasn't sure

"I heard back from the executive on whom we had performed the demo...He said his results from the central lab...were identical to the results from our system during the demo" Balwani wrote in the email
"You were shown a number of documents that related to demos where there was a discussion [at Theranos]...where there was some discrepancy of results?"

"But dozens of demos were done"

-Downey then asked if many were like this report — where patients reported identical results
Edlin said he wasn't often a recipient of post-demo correspondence, so he couldn't answer
-You were not trying to deceive anyone in this demo process

-And you did not understand that anyone else at #Theranos was trying to deceive anyone in this process.

(Edlin agreed to both)

#ElizabethHolmes
“We’re not running samples —just demonstrating the hardware,” Holmes wrote Young and Edlin in a July 31, 2012 email regarding a demo, as Downey showed.
Downey brought up the, "Plan A is to have both able to run null protocols" email, Edlin had sent to Young and other scientists, and prosecutors had shown on direct, regarding a demo.

His question line offered an explanation
You knew when tests would be done at the Walgreens stores, they would not be performed on site

Instead blood would be taken into a nanotainer

and the nanotainer was [put] into a shipping container

and shipped to a theranos lab
So watching this demo in Aug 2013 – would mimic the process that was about happen in Walgreens in a few weeks?

"…the collection process and getting the sample to the lab, correct," Edlin replied.
Downey's next line surrounded a demo where two samples were taken in an NYC hospital (both with Theranos tech) and Theranos decided to test one sample in NY and the other in their Palo Alto lab.

They got discrepant results.
"...I am inclined to believe that the run in PA is correct (positive) for a number of reasons,” Young wrote to Holmes and others.

"You would have deferred to young and his jugement, " Downey asked.

"Correct," Edlin replied
"And in this instance Ms. Holmes deferred to Young and his judgement," Downey continued.

Edlin said Young offered his opinion and Holmes offered her's.

"The ultimate decision was to report the PA (Palo Alto) results," Downey posed.

"Right," Edlin replied.

#ElizabethHolmes
New topic teased before break -- an email from Holmes to all Theranos employees in July 2015.

"It is with incredible pride that I officially let you know we have received our first FDA clearance on our system, and the first Laboratory Developed test we filed: HSV-1," she wrote.
Back in 20 ish mins.
Back and Downey and Bosic are debating the admission of what Downey characterized as "weekly/biweekly" reports.

"This appears to be a collection of anecdotal results, of customer feedback from Walgreens. Every one i've seen is positive," Bostic pointed out to the judge.
Bostic notes its unclear whether the logs were "curated" or from Walgreens

"I continue to be concerned...about the jury being presented an unbalanced view about what customer feedback to #Theranos was," Bostic said, noting it "risks giving [the jurors] the wrong impression."
Downey explained the process of compiling the reports.
There was an app where customers could write their reviews. Walgreens phlebotomists also engaged in surveying the customers — which was compiled and distributed to Edlin/#ElizabethHolmes, Downey said.
Bostic said what's in dispute is accuracy and understood that the surveys were "given to customers before they received their results."

"I see this as being too far afield [from what's at issue in the case]." the prosecutor said.
Downey explains that these logs are relevant to #ElizabethHolmes' state of mind, because the logs represent the feedback she was receiving about her tech in the field.

Bostic again cites "low probative value" as the reports (he says) do not go to accuracy of the tests.
Davila acknowledged one customer report that Bostic brought up referencing good "geography."

"Thats not relevant to any point in the case, other than their pleasant experience. I think that those things would have to be parsed out," Davila said. He's not letting the binder in.
Edlin is back on the stand.

Downey asked him about compiling slide decks for investors-- yesterday he testified about preparing a binder for Rupert Murdoch.

#elizabethholmes
Edlin testified he would reach out to #Theranos scientists for "the latest and greatest data," to include in the slide decks that were sometimes shared with investors and other parties, as downey noted.
Downey showed Edlin a Nov. 2011 email chain between Holmes and a #Theranos scientist.

"we have more data on the cbc assay," the scientist wrote to Holmes

Holmes acknowledged and asked for the info to be sent over (to update the presentation deck, as Downey noted.)
We just saw an email from Holmes in Oct. 2012 to scientistsmentioning "we have an extremely important meeting tomorrow," and "Dan (Edlin) will be sending you the relevant sections from the presentation..." she wrote
Exhibit 10468- an email Edlin forwarded to Holmes giving options for how a graph might be presented in a slide deck.

Downey clarified Edlin got the data from scientists

Holmes had a question about compilation of data and Dr. Young answered

the answer involved refrigeration
#ElizabethHolmes wrote back as Downey highlighted:

"If they currently do refrigerate then we should reflect that so we are making an accurate claim," she wrote.

(remember this is info to be put in #theranos slide decks)
we are now looking at "communications with an outside branding firm that #Theranos had engaged" as Downey put.

Attached to the email is a list of attendees for a Dec 12, 2012 meeting.

the letterhead reads: tbwa\chiat\day
We looked at the meeting notes;

"sunny brought up the fact that initial turn around in Walgreens will be 'under 24 hours," one bullet read, which Downey read into evidence.
Aug 9, 2013 at 2:10am Edlin emailed Dr. Young.

"We have a few questions related to info-graphcis that we’re planning to include on the website we were hoping you could lend your expertise,"

In two voluminous emails, Young responded to Edlin’s questions.
Downey has hammered Edlin's reliance on experts such as young, throughout his cross.
Moving on to journalists, Downey said.
Specifically surrounding the WSJ article, which was a subject on the govt's direct.

Downey elicited that #Elizabethholmes got marketing advice in advance of her intvw from Grow Marketing Inc.
Edlin testified he attended the media training Holmes went through with Grow. (Alhough he did not "participate," he said)
To the website...

"Creating that website was a huge project," Downey asked. "#theranos had a very "primitive" website [before that date in 2013]"

Edlin agreed
“I just caught up with Elizabeth— she had a conversation with our regulatory folks and they want to make a few changes on the brochure for Walgreens," Christian Holmes wrote to a marketing firm who worked on the website.
"On the one drop a world of answers panel: I assume that we are not providing every test that anyone might want..." one note in the email said

"Ms. Holmes was conveying...that the suggestion that the company offered every test shouldn’t be included in the brochure right?"

Right
Downey ended his cross. Here comes Bostic for redirect.

#ElizabethHolmes #theranos
He opens where Downey did this morning: the "burn" study.
Bostic pulled up the published article which resulted from the study.

He highlighted a few lines in the "results section" which showed 28 subjects participated and that "the study was terminated due to slow enrollment."
Now to exhibit 11251 — an email from Givens of Africom which Downey showed earlier.

"This email has an attachment is that correct?"

He pulled it up -- a draft of the Africom study.
Bostic flagged a section which listed 5 proposed tests for the study.

"Do you know whether the Edison 3.0 (which was sent to AFRICOM) is even capable of conducting the assays that are listed here?" Bostic asked.

"I don't believe it was capable of conducting all the assays."
Bostic is showing Edlin paper versions of emails with his highlights on the "ELMO".

Presumably, it's the copy he was going through as Downey introduced the emails on cross.

(We usually see emails electronically published.)
"Do you recall during direct we saw the possibility a theranos analyzer would be used on a medevac - can you describe what that use would look like?" Bostic asked

"...in order for the device to operate it would have to be plugged into a power source," edlin replied
Earlier we saw this email from Givens.

"The machine traveled well and functioned well. My only complaint is the touch screen – very frustrating," she wrote.

"Did [givens] actually run any samples and review the results?" Bostic asked.

"No," Edlin replied.

#ElizabethHolmes
break again - returning at 2. Edlin still on the stand for redirect.
Bostic continues his direct with the topic: Centcom

We're looking at an "Overview of the LOE to compare Theranos testing to avail equipment for the military," Edlin testified.
Bostic drew attention to section 3: Study Facilities.

"Combined joint theater hospital, Bagram Air Force Base, Afghanistan," it read.

Edlin testified #Theranos devices were never sent to the Bagram Air Force Base, and the study discussed never occurred.
Bostic brought up the discussion Downey had with Edlin about Theranos presentations and memos -

Bostic asked if among the others who gave him info to include in those documents, "did those experts include Elizabeth Holmes?"

"yes," he testified.
Did ms holmes provide you info about tech used by theranos

Yes

Did ms holmes provide you with info about what the devices could do in theranos

Yes
Did you get a sense of Balwani and Holmes, How they divided their expertise or influence within the company?

Sunny: clinical lab, walgreens (and others I missed)

Elizabeth: focused on science and tech, r&D in addition to marketing communications along with many other areas
we were shown 7/11/2013 email correspondence surrounding a demo:

"Ms. Holmes was on all of these emails regarding removal of results from demo reports, right?" Bostic asked.

"yes," edlin testified.
what was the purpose of the tech demonstrations?

the purpose was to showcase or demonstrate the theranos tech...and then generally to show the functionality of Theranos tech

was part of that the desire to show theranos tech performed welll

yes
who had final say over what results were sent from the demo

Daniel did and Elizabeth did.
To the FDA approval which Downey introduced from 2015 — in the company wide email #ElizabethHolmes sent.

Edlin couldn't recall any assays that were FDA approved before it or after it. Just that single HSV test.
Do you have a sense for how common it was for patients to get a vein draw instead of a finger stick?

No

would you be surprised to hear that approx 40% of [Walgreens] patients got vein draws?

No

if something happens 40% of the time would you characterize that as uncommon?

no
On the topic of investor presentations:

"What was the audience for those – how many people were expected to view them," Bostic asked.

"They were meant for individuals," Edlin replied, mentioning there was some "commentary" that indicated they were "confidential."
Bostic ended by asking Edlin to summarize why he left #Theranos in 2016.

"In the year after the initial wsj articles came out, the co claimed that it would be able to prove that the tech worked and prove that those claims were not true," he said.
"I ultimately reached the conclusion, that those attempts were unsuccessful b/c they couldn’t happen and they were never going to happen."

#ElizabethHolmes
Downey is on for recross. We've got 12 mins left today.
Other notes from Bostic's redirect --

"In my experience, Elizabeth was the only one who communicated directly with the press," Edlin testified.
He also brought up some slides from #ElizabethHolmes media training, which Edlin was present for and Downey brought in on cross.

"I’d like to ask you about a slide that Mr, Downey didn’t show you"
Title: Master blocking & Brdiging

“blocking” is deftly avoiding an unwelcome or unproductive question

“bridging” is taking the discussion from unproductive to productive…and getting back to what you want to say
Bostic followed that question line to this question:

"Did the individuals from Grow give Ms. Holmes training on which topics to use this training for?" he asked.

"I don't know," Edlin testified.

#ElizabethHolmes
Downey asked Edlin about the email Bostic showed abt removal of results

"Please note the following," Edlin wrote. "Per Paul's suggestion"

"Who does that refer to," Downey asked.

Paul Patel

And it was his suggestion that results be removed in connection with this report?

Yes
Downey is done, Bostic has no more. Edlin is excused.

He testified for three consecutive days.

Back Friday for Dr. Shane Weber of Pfizer.
Gov. will have more than one witness Friday. They "anticipate" Weber will testify.

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More from @MilesGCohen

22 Oct
#ElizabethHolmes trial day 19:

Rare rainy day in San Jose.

Today we are likely getting the former Pfizer director of diagnostics Shane Weber, who once evaluated Theranos' tech.

Prosecutors said they have "multiple" witnesses ready to go. Image
The government will call Brian Tolbert to testify today, Prosecutor Jeff Schenk said in pretrial arguments.

Unclear if he will be first, or Dr. Weber.

#ElizabethHolmes #Theranos
Bryan Tolbert*

His name was spelled wrong on the prosecution's witness list...

Tolbert is currently the VP of finance at the Hall Group

hallgroup.com/leadership/bry…
Read 93 tweets
12 Oct
#ElizabethHolmes Trial Day 13 — we're back at Robert F. Peckham Federal Courthouse.
The lawyers are discussing whether the jury should hear about the "monetary sums for the development of Safeway stores."

AKA $300 - $400 million

"That might be more prejudicial than probative," Davila said, noting the jurors will likely fixate on the large number.
Judge Davila ruled: no mention allowed of the $300-400 million.

But Davila will allow prosecutor Robert Leach to ask questions about the development of the Safeway stores.

"Be careful of doors," the judge warned the attorneys.

#ElizabethHolmes
Read 73 tweets
6 Oct
#ElizabethHolmes trial day 12 — likely former Theranos Lab Director Adam Rosendorff's last day on the stand.

A new "local" witness may round out our day.

Stay tuned!
The "local" witness's identity revealed: Steven Burd — the former CEO of Safeway.

#ElizabethHolmes #Theranos
Defense attorney Downey objects to Burd testifying, saying it's, “Leading to a distraction that we don’t need.”

Judge Davila proposed precluding the number of dollars (300 million) that Safeway spent building out their stores — allegedly to equip them with Theranos tech.
Read 122 tweets
24 Sep
Here we go. #ElizabethHolmes Trial Day 7. Looks like former Theranos Lab Director Dr. Adam Rosendorff will be the government's next witness. #TheDropout @RebeccaJarvis @VicThompsonABC @TheOrdonezTimes @TheDunnDunn
On Tuesday the defense asked former Theranos scientist Surekha Gangakhedkar if she recalled, "coming to the view that [Dr. Rosendorff] was not concerned about the patient launch?”

"That was my understanding,” she replied. #ElizabethHolmes #Theranos
Dr. Adam Rosendorff is in the witness box #ElizabethHolmes
Read 72 tweets
22 Sep
Day 6 of the #ElizabethHolmes trial. Hanson has been MIA for over a week now. Here are some flashbacks of him watching Holmes go through security during jury selection: #TheDropout ImageImage
Court begins with Judge Edward Davila deliberating in his chambers on which text messages to allow the government to admit into evidence.

Some in question are between #ElizabethHolmes and her former romantic partner and top Theranos executive Sunny Balwani
The government has called Justin Offen, a forensics leader at PwC who will likely testify to thousands of texts between #ElizabethHolmes and Sunny Balwani
Read 31 tweets

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