Here’s what it’s essential to know to catch up because the jury’s deliberations start.
Holmes dropped out of Stanford on the age of 19 to work on Theranos. Nearly a decade later, in 2013, she took Unveiling the corporate, saluting the press, and saying a retail partnership with Walgreens. Theranos claims to have invented expertise that may precisely and reliably check for a spread of situations with just some drops of blood.
Holmes raised $945 million from the likes of media mogul Rupert Murdoch, former schooling secretary Betsy DeVos, and the inheritor to the Walton’s billionaire household, the Walmart fortune. At its peak, Theranos had a valuation of $9 billion, making Holmes a paper billionaire. She has retail partnerships with Walgreens and Safeway, has been hailed on the duvet of the journal and has been hailed as the subsequent Steve Jobs, a comparability she wears to a signature black turtleneck (one thing she hasn’t worn within the courtroom). Foster helped.
Government case against him
Holmes now faces nine counts of federal wire fraud and two counts of conspiracy to commit wire fraud. He faces up to 20 years in prison as well as a $250,000 fine and indemnity for each wire fraud and each conspiracy count. He has pleaded not guilty.
The government called 29 witnesses to testify, including former Theranos employees, retail executives, investors, patients and even a former defense secretary who once served on the company’s board. With that testimony, federal prosecutors attempted to show how Theranos concealed its blood-testing practices, exaggerated its financials, misled investors about the status of the involvement, and used the media to uphold its claims. took advantage of.
Among the evidence presented were: personal text messages from Holmes as well as internal emails, investor presentations, and press interviews. The government also produced reports pasted with the logos of major pharmaceutical companies, with several witnesses testifying that they believed they were produced by the companies and indicating support for Theranos’ technology, When exactly the report was prepared by Theranos.
Witnesses also testified that they were told by Holmes that the company’s technology was being used on military and medical evacuation helicopters, something that – despite Theranos’ desire to do so – never happened. Witnesses testified that they were unaware that Theranos did not rely on its proprietary blood analyzer equipment for testing.
“Why does this fraud work? How does it work? A giant a part of it was the credibility of the mortgage,” prosecutor John Bostic said in his rebuttal on the defense’s final arguments on Friday. “Ms. Holmes has borrowed the credibility of drug firms, of Walgreens, of well-known board members, of the press … and of the army.”
“Associating himself with these people and organizations,” he continued, “he strengthened his credibility of Theranos, and by exaggerating these references, he led others to imagine that Theranos had the legitimacy of these different entities. Should be.”
protection of holmes
Holmes said he never acted with the intention of defrauding investors, doctors or patients. In a striking moment, Holmes testified that she herself added the pharmaceutical company’s logo to the report she shared with investors “as a result of this work was carried out in partnership with these firms and that is what I used to be making an attempt to convey.” But Holmes also noted that she listened to witness testimony and wished she “had carried out it otherwise.”
Holmes offered himself as appearing in good religion to guard his firm. When, for instance, Theranos hid info that it relied largely on third-party manufactured tools to course of affected person assessments quite than its personal tools, Holmes stated it was with a purpose to defend “commerce secrets and techniques”. it was done. Holmes also testified that he focused his conversations with potential investors on the future. “They weren’t considering at this time or tomorrow or subsequent month,” she said. “They have been considering what sort of change we might make.”
At times, when pressured by the prosecution, he refused. Holmes claimed that he did not say that the company’s technology was deployed on military helicopters for medical use, which previously contested the testimony of witnesses. In other cases, he claimed that he did not remember specific details.
She testified that she considered him her most important mentor in Theranos. “It affected every little thing about who I used to be, and I do not absolutely perceive it,” she said, effectively raising the question of whether she had the power to pull strings at her company at all. There is no capacity.
“He gave up a college education for which people would give their right hand. He gave up his youth. He left his friends. He gave up his close relationship with his family,” Downey stated on Friday. “Why? Because she believed she was building a technology company that would change the world. That’s our story.”