San Jose, Calif. — Theranos founder and former CEO Elizabeth Holmes returned to the witness stand Tuesday, confirming key aspects of the prosecution’s allegations, including that she faced 11 fraud charges, but claiming that she There was nothing wrong in what he did.
Prosecutors have repeatedly shown jurors’ lab reports emblazoned with the logos of pharmaceutical companies Pfizer and Schering-Plow. Witnesses from companies working with Theranos testified that the use of the logo was unauthorized and they were unaware of it at the time.
Holmes admitted that she was the one who added the logos to the Theranos lab reports and sent them to Walgreens after she struck a deal to keep her blood-testing startup’s diagnostic machines in the pharmacy’s retail stores.
Holmes acknowledged that in some cases, Theranos used third-party tools instead of its own tools.
“This work was done in partnership with those companies and that’s what I was trying to convey,” she said via explanation. “I wish I had done it differently,” she said.
Addressing another important point made by prosecutors, Holmes said that when Theranos switched from using on-site analyzers to a centralized laboratory approach to processing samples, It used third party tools as “inventions” instead of its own tools because there were too many samples to handle. Witnesses have testified that Theranos’ signature blood-testing machine repeatedly failed quality assurance tests and gave inaccurate results. Holmes said the company did not disclose the arrangement to its business partners because it was a trade secret.
She denied prosecutors’ arguments about certain alleged misrepresentations to investors, the media, and business partners, confirming that she had received specific positive reports from employees and outside experts and believed their The statements were correct.
When presented with company emails and PowerPoint presentations, defense attorney Kevin Downey asked Holmes about specific examples brought by prosecutors.
The jurors looked at an email sent to Holmes by then-chief company scientist, biochemist Ian Gibbons, about the development of Theranos’ fourth-generation device.
“Our immunoassays best match what can be done in clinical laboratories and work with small blood samples. Our assay is typically faster than a kit by a factor of three to 10 ,” Gibbons wrote.
Downey asked Holmes what he meant by that email. “I understand that the 4 Series can do any blood test,” she replied.
US District Judge Edward Davila has directed jurors that emails between Holmes and his lab staff, along with several other demonstrations, should be construed as an indication of Holmes’ “state of mind”, not what actually happened. as its facts.
Despite those promises to investors and the media, other witnesses testified that Theranos’ proprietary equipment could only perform certain tests and had major quality issues. For its rollout with Walgreens, the company relied on Third-party equipment that was modified to process the company’s proprietary tiny “nanotener” blood vials, but still returned false results, according to testimony.
In a new line of defense, Holmes testified that Theranos test equipment in its laboratories had issues with excessive power demands and heat generation. He said they were designed to be used in retail stores visited by patients over the course of a day, but the Theranos lab had all the equipment clustered together and processed patient tests at once. . Defense brought an email between hardware project manager Tim Kemp stating that the Theranos building in Palo Alto, California, The retail rollout could not meet the power demand for running the equipment to process the large number of patients and run the air conditioning to cool them.
If convicted, Holmes faces up to 20 years in prison, a $250,000 fine, and full or partial restitution to investors, totaling about $155 million.