What happened the day after Elizabeth Holmes testified.
On Monday, after a season of allegations that she lied to obtain money for her blood-testing start-up Theranos entrepreneur embroiled in a fraud lawsuit, Elizabeth Holmes, stepped up her defense.
In the second day of her testimony, which lasted only less than two hours, Ms. Holmes’ attorneys demonstrated and questioned her against prosecutors’ claims that she defrauded investors, patients and doctors.
The view set forth by Ms. Holmes’ attorneys in the initial statements of the trial was to show that a kernel of truth may exist under some of the most obvious misrepresentations that prosecutors have shown to Ms. Holmes.
Here were the main rebuttals:
Theranos worked with pharmaceutical companies
One of the key allegations prosecutors have brought against Ms Holmes is that she claimed Theranos’ technology had been “widely validated” by 10 of the world’s 15 largest pharmaceutical companies.
This was not true, prosecutors have said. Yet Theranos sent investors reports featuring the logos of companies who testified that the reports gave credibility to young start-ups and helped persuade them to invest.
On Monday, Ms Holmes painted a different picture. Theranos worked with drug companies, she testified. There were clinical studies and even a study published in a peer-reviewed journal. (Ms. Holmes’s lawyer did not name whom.)
The inquiry allowed Ms. Holmes to focus on Theranos’ early successes and her conversations with potential partners, while shedding light on the results of those conversations. Ms. Holmes stopped short of addressing her subsequent claims about Theranos’ successes and reports that seemed to give Theranos its seal of approval from drug companies.
During her testimony, Ms. Holmes also attempted to deflect blame. He said he learned about Theranos’ technology from scientists and doctors working in the company’s lab. She said she believed him when he said the technology worked. Implication: Ms. Holmes may not have intended to deceive investors if she thought the technology was real.
“We thought it was a really big idea,” said Ms. Holmes.
Ms Holmes has been charged with 11 counts of fraud and conspiracy to commit fraud. He has pleaded not guilty. If convicted, he faces up to 20 years in prison.
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