We are listening to a taped recording between Parloff and Holmes.
Holmes talked about the “highest levels of quality and data integrity,” in the first clip played.
"We have done work overseas for Pharma companies uhh a little bit with foreign governments in the past. But right now we’ve got our works for us cut out here," Holmes told Parloff in a restaurant.
She knew he was recording, Parloff testified.
Holmes told Parloff that her tech had been used by the military in Afghanistan, he testified.
He said he was not supposed to use that information in the piece.
Holmes sent Parloff the validation report with the apparently doctored Pfizer logo —
"Did Ms. Holmes tell you that Theranos had generated the content of this report?"
"No," Parloff testified.
Bostic pulled up the conclusions in the "angiogenesis report"
"Did Ms. holmes ever tell you these were not the conclusions with Pfizer,"
"No," Parloff testified.
Bostic pulled up the Schering Plough report which appears to be the same as the one admitted earlier in trial
"...Did Ms. Holmes ever tell you that this praise (conclusion section) was generated by Theranos itself?"
"No," Parloff testified.
Another recording played out loud:
“There's a lot of automation around it….That's part of where we focused on minimizing human error,” Holmes told parloff, as we heard in court.
“You agreed with ms holmes that she could give you info, but you checked with her before disclosing?" Bostic asked.
"I was getting it on background," Parloff clarified. "Getting her approval before so I didn't compromise her IP rights.”
Holmes never disclosed to Parloff Theranos was buying third party analyzers, he testified.
"When you do perform venipuncture, why is that at the moment?" Parloff asked.
"...The biggest reason is that we are scaling. And as we build out the infrastructure we're also building out the inventory," Holmes said, as we heard out loud, among other reasons.
“Our whole business is about eliminating the need for the venipuncture," Holmes continued. "Everything we do is about eliminating that.”
Holmes never told Parloff they were doing venipuncture because there were some fingerstick tests they couldn't do, Bostic elicited.
Defense attorney John Cline interrupted Parloff's testimony. He told the judge that there are recordings of the convos he's testifying to.
The judge indicated its Bostic's prerogative to play the tapes or not.
We're breaking now. Parloff remains on direct.
Parloff is back — Bostic begins with another clip from an interview with Elizabeth Holmes.
Did you ever ask Ms holmes directly whether #theranos had third party analyzers...?
Parloff said he asked Holmes two questions, neither were recorded, but he had notes. Both were before he published his 2014 profile.
"You dont keep a Siemens analyzer on hand, for overflow do you?" Parloff asked, as he recalled from the stand.
"she said 'uh-huh'...A non verbal response, but it meant, correct we dont do that."
"It's not for instance that we can't do our own tests on our own platform, we need to do it on a Siemens analyzer," Holmes explained, as Parloff recalled.
Bostic asked if Parloff asked about the term Edison.
"I'm pretty sure she brought it up," he said.
"The name was no longer in use," Parloff said.
As Parloff approached his date of publication Holmes sent him some clarifications about the language he could use in his article.
“As you know, we want to generally keep the focus off the hardware. A way to do this if you are referring to it/the automation in our lab is to use the word analyzer...(rather than the word device)," Holmes wrote Parloff.
"It is ok to say the analytical systems are about the size of a desktop computer...off the record this is the size of the system we’re standardizing around for our next wave of production contrasting the size of our [lab] facility next to conventional [lab facilities," she wrote
Holmes never contacted Parloff to request a correction after his article was published, he testified.
We are listening to more clips from a 6-minute portion of a convo with Holmes on July 1. 2015 — after Parloff published his article.
Bostic brought up the 40% number we heard earlier in trial — the percent of venous tests run on Theranos' patients who went into Walgreens.
That number was never told to Parloff, he testified.
Parloff reached out to Holmes post-WSJ article (Oct. 2015) to get her reaction to a statement about how many tests the device could do.
"I asked how many tests could you do on your proprietary device as of Dec. 2014, which was the date referenced in the WSJ article. She responded, 50-60, maybe 70. We can get you that number," she said.
Bostic ended his direct.
John Cline on for cross.
Cline started by listing Parloff's ridiculously juiced up resume.
Harvard...yale...law school...law professor
then journalist.
Is it fair to say by April of 2014, you had had many years of experience asking questions? As a lawyer and then as a journalist?
I suppose, yes.
Cline is asking Parloff a line about a convo he had with David Boies who Parloff spoke to about the merit of an article on Elizabeth Holmes
Parloff invoked reporter privilege.
His attorney stood up from the an audience bench in the court room to back him up.
"You first met with Ms. Holmes on 4/7/2014?"
...That's right
“Normally the assumption is you're on the record until you say you're off the record,” Parloff said to Cline, when Cline asked if he set any ground rules.
Did you understand that something that was to be off the record was not be used in the article?
Yes
We are listening to portions of the interview tapes from April 2014, as selected by John Cline.
"...The military could be one of them," Holmes said.
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The prosecution said they would rest this week, and the crowds showed up accordingly.
Fortune's Roger Parloff will be back on the stand
If they put on a case — the defense disclosed to the prosecution their first witness will be a paralegal from their firm.
They also told the government they plan to call a 2nd witness: Theranos board member Dr. Fabrizio Bonanni.
The gov't moved to exclude Bonanni's testimony.
The defense is arguing the relevance of Dr. Bonanni's testimony, who they said joined #Theranos in March 2016.
Bonanni will speak to the capabilities of the Minilab, which they pointed out rebuts an allegation the government made in the indictment, they told the judge.
Defense attorney John Cline is arguing with Prosecutor John Bostic about which portions of Parloff's interviews with Holmes can be played to the jury on cross examination.
“She needs to take the stand and testify," Bostic said, citing hearsay concerns over portions of Holmes' interview, the defense sought to admit.
Cline argued he could admit for Holmes' state of mind.
"She's not trying to deceive Parloff or the investors," Cline said.
Holmes' team filed a motion last night to admit certain portions of her recorded interview with @FortuneMagazine writer Roger Parloff — who could testify as soon as today.
Defense attorney John Cline offered sound bites from Holmes which "[disclose] DoD’s use of Theranos as a potential one," explain why #Theranos considers its tech/processes trade secrets, and other portions that the government's proposed plays "artificially cut out," Cline said.
Not offered by either the government or the defense — the beginning of the intvw in which Holmes tells Parloff how she got into the biz.
"I ultimately dropped out in May. But -- but when I filed the patent in September, I knew this was what I was going to be doing," Holmes said
#ElizabethHolmes' team is arguing a motion to reconsider the admission of "enthusiastic" Walgreens customer reports from those who had their blood tested by #Theranos tech
The defense is offering them for Holmes' state of mind, b/c the glowing reviews went "directly" to the CEO
Judge Edward J. Davila went through the surveys, and could not find many reports which actually discussed test results — an issue in the case, he told the defense attorney.