While the Silicon Valley Fallen Star Elizabeth Holmes is under investigation, psychiatrists, conflicts over the deleted database and high-profile witnesses such as Henry Kissinger and Rupert Murdoch are expected.
San Jose (E24): The court complex in Silicon Valley is still early in the morning and still an hour away, but there was already an queue of journalists and other visitors outside.
They stood and froze to secure a place inside the hall during the arbitration, which was rife with corruption by biotech founder Elizabeth Holmes (37).
The 37-year-old has been charged with fraud by investors, doctors and patients following a scandal that has been widely talked about in Silicon Valley history. If convicted, she faces up to 20 years in prison.
His company, Theranos, raised more than six billion kroner to revolutionize the blood sample. At its peak in 2015, its value was $ 9 billion – over 80 billion kroner.
Holmes has been praised by greats such as Bill Clinton and Joe Biden and has graced the covers of magazines such as Forbes and Fortune.
It was later revealed that the company’s claims about the technology were exaggerated or false.
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Elizabeth Holmes pleaded not guilty to all charges, and four of her ten attorneys were in court.
Without the black high neck that was the makeup and her trademark (after the inspiration of Steve Jobs) she looks different than she was at the peak of her career.
When the judge asks questions to potential judges, he or she takes notes. Occasionally she holds a quiet conference with some of the guards.
They did not respond to E24’s inquiries, and did not provide a full version of the Holmes story. But more recently, more and more leaks about the security strategy have been leaked as key talks begin next week.
Blame the ex-girlfriend
I Documents Released by the court this weekend, Holmes’ bodyguards will charge his ex-boyfriend Ramesh “Sunny” Balwani, who was head of the company from 2009 to 2016, among others. Also charged with fraud.
Her lawyers claim that female entrepreneurs suffer from mental health problems after many years in a relationship characterized by physical and psychological violence.
Evidence relating to the relationship between Holmes and Balwani is more likely to be relevant at trial, they write in a document.
Among other things, he monitored her movements, conversations, text messages and emails, threw sharp objects at her, controlled her sleep and insisted that he was responsible for all her success.
Psychiatrists will also examine Holmes for psychiatric charges as a result of the relationship.
According to, Balwani vehemently denies all the allegations A court document. She was backed up in a separate trial to avoid defending herself against her charges before the jury. She wanted the same thing, due to the post-traumatic stress disorder.
A brilliant move by the defenders, says Barbara McWade, a former state attorney who is now lecturing at the University of Michigan Law School.
“It allows each offender to point to others as the real villain,” McQueed told E24.
– and the arbitrator can only deal with the accused sitting in the room in front of them. So, both can move freely.
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E24 has spoken with several legal experts, all of whom have pointed out that the most difficult thing for a lawyer is to prove intent.
– In financial crime cases like this, there is rarely much doubt about the facts surrounding the transactions. Mark McDougall says it is challenging to know the defendant’s intent, and the former federal attorney general now works as a defense attorney in Washington, D.C., including for white collar crime.
The defense seems to be well thought out. Holmes was young, Balwani was very old and very experienced.
In addition, safety can emphasize that all heavyweights on the company’s board have a specific responsibility, McDougall points out.
Also present were former Secretary of State Henry Kissinger and former Secretary of Defense James Mattis, both of whom are on the list of 280 possible witnesses.
Media mogul Rupert Murdoch, who has invested more than $ 100 million in the company, was one of those summoned to court in San Jose.
The witness list includes two whistleblowers Tyler Schultz (grandson of former employee and council member and former Secretary of State George Schultz) and former laboratory assistant Erica Cheung.
According to Barbara McQueen, these are key witnesses to the lawsuit because they can show the entrepreneur that the errors were reported – without her doing anything about it.
I think I will try to show Holmes what facts he knows and what statements he made on the contrary so that the referee can conclude that it is fraud because he knows the truth to her.
Former employees may also testify that there was a culture of fear in the company For Sunny Balwani became president as former design director Justin Maxwell told E24 last week. Like other employees, he says he initially fired employees who told him about the mistakes.
In addition, former prosecutor McWade says patients affected by incorrect test results can convince witnesses.
– Technical geniuses, expert witnesses and doctors can be difficult to communicate with, but patients are like us, he says.
Holmes ‘lawyers, on the other hand, believe that patients’ explanations are archaic evidence, so they sought to block this testimony. They claim that Holmes cannot access data from the company’s old database to protect himself.
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The database was deleted after the lawyer received an encrypted copy, and they later discovered that an encryption key was missing.
Thus, the results of millions of blood tests have disappeared.
The government believes that this database was deliberately deleted. Defendants allege that the authorities delayed and that the data could destroy their client.
However, they failed to convince Judge Edward Davila that he ruled that patients would only testify to real events, but how the false test results affected them emotionally.
According to Pallav Sharda this makes little sense. He fell victim to defective blood test technology and even works with medical technology in Silicon Valley.
– You can’t separate health and emotions, he tells E24.
He withdrew a test showing that Sharda was going to have diabetes. The doctor wanted to give him medicine, but luckily he took a new blood sample with another company. It showed completely normal values.
– My case is not so serious, but he says it may have affected many.
Changing the way people sleep
Of the 1.5 million tests Terranos sold in Arizona between 2013 and 2016, at least 10 percent agreed that a settlement between the government and the company should be canceled or corrected.
One of the patients According to local media To testify, I withdrew the negative pregnancy test. In fact, she was pregnant outside the womb – a life-threatening condition if not diagnosed.
– It’s like selling a car without brakes, says Saratha.
Elizabeth Holmes came to a settlement with the U.S. Financial Oversight Commission about 4.3 million civil cases. The settlement did not involve her confession, but she was barred from holding high office for the next ten years.
I Diploma From this case, Holmes admitted many lies and avoided many questions.
Among other things to say about her ex-boyfriend’s abuse, she is now very excited about what she will say when she wants to pick up the witness box herself.
According to Peter Johnson, a law teacher at UCLA, this is an unusual and dangerous strategy.
But he also thinks it might be wise.
– It would not surprise me if she was a good witness. She seems to believe what she did, he says.
– She seems ready to tell her story.
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