Adam Rosendorff , who was Theranos’s lab director in 2013 and 2014, testified for six days about highly technical elements of the company’s inner workings. Jurors’ eyes glazed over at detailed discussions of Immulite reagents, Advia machines, immunoassays, Vacutainers, and an array of acronyms like Q.C. (quality control) and H.C.G. (a hormone test).
Even Judge Edward Davila, typically reserved and patrician, hinted at exasperation as lawyers from both sides sparred over whether Dr. Rosendorff could be questioned about investigations that happened at companies he worked for after Theranos. The defense had already had four days to poke holes in Dr. Rosendorff’s testimony, Judge Davila said.
Despite the tedium, Dr. Rosendorff’s testimony was critical to the prosecution’s case. He described repeated instances of irregular and inaccurate results in Theranos’s blood tests, which he said made him uncomfortable and ultimately led him to leave. He said he left because he “wanted to join a reputable company whose mission I believed in.”
Lance Wade, a lawyer for Ms. Holmes, attacked Dr. Rosendorff’s testimony by muddying that narrative. When Mr. Wade noted Theranos’s initial offerings were merely a “soft launch” for friends and family, downplaying any issues with the blood tests, Dr. Rosendorff did not flinch. “Those are patients,” he said.
“It was a soft launch for friends and family,” Mr. Wade repeated.
“It was a patient launch,” Dr. Rosendorff said.
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Erin Woo 📍Reporting from San Jose, Calif.
Erin Woo 📍Reporting from San Jose, Calif.
Carlos Chavarria for The New York Times Elizabeth Holmes, the disgraced founder of the blood testing start-up Theranos, stands trial for two counts of conspiracy to commit wire fraud and 10 counts of wire fraud.
Here are some of the key figures in the case →
Erin Woo 📍Reporting from San Jose, Calif.
Stephen Lam/Reuters Holmes founded Theranos in 2003 as a 19-year-old Stanford dropout. She raised $700 million from investors and was crowned the world’s youngest billionaire, but has been accused of lying about how well Theranos’s technology worked. She has pleaded not guilty.
Erin Woo 📍Reporting from San Jose, Calif.
Justin Sullivan/Getty Images Ramesh Balwani , known as Sunny, was Theranos’s president and chief operating officer from 2009 through 2016 and was in a romantic relationship with Holmes. He has also been accused of fraud and may stand trial next year. He has pleaded not guilty.
Erin Woo 📍Reporting from San Jose, Calif.
Jefferson Siegel for The New York Times David Boies , a prominent litigator, represented Theranos as its lawyer and served on its board.
He tried to shut down whistle-blowers and reporters who questioned the company’s business practices.
Erin Woo 📍Reporting from San Jose, Calif.
Getty Images The journalist John Carreyrou wrote stories exposing fraudulent practices at Theranos.
His coverage for The Wall Street Journal helped lead to the implosion of Theranos.
Erin Woo 📍Reporting from San Jose, Calif.
Jeff Kravitz/FilmMagic, via Getty Images Tyler Shultz and Erika Cheung are former Theranos employees and were whistle-blowers. They worked at the start-up in 2013 and 2014.
Shultz is a grandson of George Shultz, a former secretary of state who was on the Theranos board.
Erin Woo 📍Reporting from San Jose, Calif.
Eric Thayer for The New York Times James Mattis, a retired four-star general, was a member of Theranos’s board.
He went on to serve as President Donald J. Trump’s secretary of defense.
Erin Woo 📍Reporting from San Jose, Calif.
Edward Davila, a federal judge for the Northern District of California, will oversee the case.
Kevin Downey, a partner at the Washington law firm Williams Connolly, is the lead lawyer for Holmes.
Robert Leach, an assistant United States attorney for the Northern District of California, will lead the prosecution for the government, along with other prosecutors from the U.S. attorney’s office.
Read more about Elizabeth Holmes:
Jurors became overwhelmed. On Wednesday morning, before the proceedings, Judge Davila called a juror into the courtroom to discuss Buddhism. The juror, an older Asian woman, said she had become increasingly distressed about the trial. Her Buddhist practice is centered on love and forgiveness, she said, and it would be difficult for her to vote to convict Ms. Holmes. The juror said she could not follow the judge’s instructions to avoid thinking about punishment.
“What if she had to be in there for a long, long time,” she said, her voice breaking. The juror said she would blame herself.
Lawyers from both sides agreed to dismiss her.
The replacement juror, a young woman, had her own concerns. English was not her first language, she said. “It’s her future,” she said of Ms. Holmes. “I could make a mistake.”
The juror said she had understood all of the proceedings thus far. Judge Davila did not allow her to leave.
Keeping the jury together looms large over the four-month trial. In the first week, a juror was dismissed after learning her job would not compensate her for the time away. Each day, Judge Davila has asked the jurors whether they have been exposed to any media coverage that could sway their views.
The pandemic is also a risk. Even though all jurors are vaccinated and wear masks, one day of trial was already canceled because of a juror’s potential exposure to the coronavirus.
Three alternate jurors remain.
Safeway’s former chief executive began his testimony. Steve Burd, the former chief executive of Safeway, on Wednesday began telling the story of Safeway’s partnership with Theranos, which ultimately unraveled.
Mr. Burd met Ms. Holmes in 2011 and was immediately impressed. He described the promises she had made about Theranos’s technology, testifying that he was excited to bring fast and cheap blood testing to Safeway’s grocery stores. People could shop for groceries while they waited for their results and picked up their prescriptions at Safeway’s pharmacies, he said.
The companies struck a deal for Safeway to pour as much as $85 million into Theranos by investing, buying its equipment and more. The negotiations were all done directly with Ms. Holmes with no lawyer present, a move Mr. Burd said he found “unusual.”
His testimony continues next week.
Article source: https://www.nytimes.com/live/2021/10/07/business/news-business-stock-market
