Theranos: Why Elizabeth Holmes’s Trial Was Intent
SAN JOSE, CALIF. – The trial of former Theranos CEO Elizabeth Holmes raised only one question: Was she covering up flaws in her startup’s blood-testing technology to defraud investors while she was noticing flaws? potentially endanger the lives of unwitting patients?
Federal prosecutors charged Holmes, 37, with 11 felony counts of fraud and conspiracy in 2018 after Theranos collapsed under the weight of bogus while boasting about his technological prowess. me. She repeatedly claims that Theranos has a new way to scan hundreds of diseases and health problems with just a few drops of blood drawn with a finger prick.
That would be a significant change from the usual method of taking vials of blood through a needle inserted into a patient’s vein, then transporting them to be examined by Quest Diagnostics or Labcorp – a process may take many days.
SMOKE AND MIRROR
But it all becomes an illusion.
According to prosecutors, the site was accused of lying and other fraudulent practices brought up during a trial that took place between 2010 and 2015, when, according to prosecutors, Holmes defrauded investors into investing in the site. its startup while also misleading patients about the accuracy of its blood tests.
As he defended himself during seven days of frequent dramatic testimony on the stand, Holmes admitted to making a number of bad and erroneous decisions. But she insists that she doesn’t stop believing Theranos is on the verge of a breakthrough that could redefine healthcare.
Holmes also hinted that she was manipulated and cheated by her former lover, Sunny Balwani. Holmes testified that Balwani, who she secretly lived with when he was chief executive of Theranos from 2009 to 2016, frustrated her by failing to fix problems in the lab. which he promised to remedy and, in the most dramatic testimony of the trial, alleges he made her his pawn through a prolonged pattern of abuse while under dietary control, Her sleeping habits and friendships.
Balwani, whose attorney has vehemently denied Holmes’ allegations, is facing similar fraud charges in a separate trial scheduled to begin in February.
A jury of eight men and four women is currently debating whether Holmes was guilty of the charges affecting her future or acquitted. The jurors completed their first day of deliberations on Monday without sending any notes to U.S. District Judge Edward Davila, who has presided over the trial since it began in early September. . They will return to court in San Jose, California, on Tuesday morning.
If Theranos’ technology worked as well as Holmes claims, it could have saved lives and reduced healthcare costs by making blood tests more convenient and cheaper for people – and helping doctors understand in more detail about their physiology.
It was such an interesting concept that Holmes was able to assemble a highly powerful panel made up of former Cabinet members from administrations ranging from Richard Nixon to Donald Trump. It also quickly turned Holmes into a media sensation in Silicon Valley.
At its peak, privately held Theranos was worth $9 billion, with half of that paper assets belonging to Holmes, who dropped out of Stanford University in 2003 to start the company at the age of 19.
But Theranos’ much-hyped technology turned out to be a monumental failure. It produced so unreliable results that the company’s lab secretly began using conventional blood-testing machines and methods, even as Holmes continued to hail it as a breakthrough while boasting about lucrative contracts with the US military and big pharmaceutical companies like Prizer didn’t really exist.
It all fell apart in 2015 and 2016 when revelations about Theranos’ testing flaws appeared in a series of articles in The Wall Street Journal and the findings of the Centers for Medicare & Medicaid Services audit.
The US Department of Justice filed the charges against Holmes nearly three and a half years ago, but the trial was delayed due to the pandemic and later because of Holmes’ pregnancy.
The incident can also be seen as a warning shot at Silicon Valley fervor, where young aspiring entrepreneurs often get lost in their own arrogance and hype when they pursue fame and fortune.
Although Theranos raised more than $900 million before it failed, the fraud allegations center on about $155 million raised from five investors between December 2013 and December 2014. The largest of which is a $100 million investment by the DeVos family, which includes the former Education USA. Secretary Betsy DeVos, made a lot of money from Amway.
Holmes is accused of patient fraud in connection with Theranos’ transmission of inaccurate blood results in May 2015 and a payment of $1.1 million in August 2015 for advertisements promoting the test. your blood at Walgreens pharmacies. That partnership, one of Theranos’ big selling points, was eventually dissolved as the startup’s woes grew.
The two alleged conspiracy charges that Holmes concocted it all as part of an elaborate scheme to attract business partners like Walgreens and media outlets like Fortune, in addition to investors and the patient is involved in fraud charges.