The CEO of Thiranos attracted investors while the lab director saw trouble.
Fallen Silicon Valley star Elizabeth Holmes has persuaded media mogul Rupert Murdoch and other billionaires to invest in her biotechnology startup, despite warnings that her unconventional blood tests are dangerously unreliable.
SAN JOSE, Calif. – Fallen Silicon Valley star Elizabeth Holmes has persuaded media mogul Rupert Murdoch and other billionaires to invest in her biotechnology startup because despite warnings, her unconventional blood tests are dangerous. Are incredible
The revelations came during the eighth day of a high-profile trial that revolves around allegations that Holmes deceived investors, consumers and unhappy patients as the CEO of Theranos, a company that closed after leaving college in 2003. Founded when she was 19 years old.
But Adam Rosandorf, a medical doctor who oversaw Thiranos’ clinical laboratory from September 2013 to November 2014, took a deeper picture Tuesday while testifying as a witness for federal government prosecutors. Attempts were made to convict Holmes in the cases.
Claiming to be innocent, Holmes, 37, said he had spent almost 15 years of his life trying to come up with a great idea. If convicted, he could face up to 20 years in prison.
Rosandorf insisted that he repeatedly tried to warn Holmes and Thiranos ‘chief operating officer and Holmes’ former lover, Ramesh “Sunni” Balwani, that the tests were so wrong that he was surrounded by doctors. Was going
According to Rosendorf, Holmes and Balwani were more interested in promoting Thiranos’ image as a potential game-changer than in protecting people’s health.
“The number and severity of the problems had reached a peak,” Rosandorf testified in a San Jose, California, courtroom, explaining that he decided to leave Theranos instead of breaking his oath as a doctor. Why? ” He said he was so nervous that when he finally left Theranos, he refused to shake Balwani’s outstretched hand.
The prosecution also showed a series of text messages exchanged between Holmes and Balwani, trying to prove that they were more interested in gaining fame and fortune than in protecting people’s health.
While Rosandorf was raising objections to Thiranos’ blood testing technology, Holmes sent a text message to Balwani stating that he had completed deals worth about 150 150 million with the Murdoch and Walton family. Which is behind Walmart.
“They are not investing in our company,” Balwani texted. “They are investing in our destiny.”
The investment privately helped Thiranos to the tune of 9 9 billion, with Holmes having a 4.5 billion stake.
Just a few weeks after Rosandorf left Thiranos in protest, Holmes texted Balwani in December 2014 to share his hope for the coming New Year.
“This is our year,” Holmes texted Balwani. “We will never forget this lion.”
Holmes, who is now married to a different man, has accused Balwani of “abusing a close friend”, which affected some of her actions and statements while she was driving Theranos. Balwani’s lawyer has vehemently denied the allegations. A separate trial is set to begin next year.
However, 2015 proved to be the beginning of the end of Theranos.
In October of that year, the Wall Street Journal published a series of explosive articles exposing flaws with Theranos technology and triggering a government investigation that led to the company’s downfall and the current ordeal. Rosandorf testified that he was one of the sources who provided information for these articles.
The Wall Street Journal is owned by Murdoch and is on the government’s list of witnesses who will be called to testify during the trial, which will continue until mid-December.
Lance Wade, a Holmes lawyer, tried to dig into Rosendorf’s testimony by pointing to several meetings with federal prosecutors and other government officials before taking a stand. Wade noted some discrepancies between Rosandorf’s statements during the trial and other affidavits given in other civil cases brought against Theranos.
“I did my best to fulfill my responsibilities as a lab director,” Rosandorf maintained, while Wade questioned his intentions.
Rosendorf will return to the witness stand on Wednesday when the trial resumes.