Sign up for myFT Daily Digest to get the first news about Theranos.
Elizabeth Holmes lawyers will begin defending Theranos founder on Wednesday, the first to be closely monitored. trial It focuses on her state of mind and has the potential to scrutinize the boundaries of Silicon Valley’s promotional culture.
A dozen juries will hear from Holmes lawyers and federal prosecutors at the outset claiming that they have deliberately misunderstood investors and patients about the effectiveness of Theranos’ blood testing technology.
San Jose’s US federal court trial promises to be one of the hottest tests of alleged cheating in Silicon Valley that we are currently experiencing. Historical boom in startup funding..
Holmes faces a plot of 10 wire frauds and 2 wire fraud attempts. She pleaded not guilty.
Founded by Holmes in 2003 and headquartered in Palo Alto, Theranos was like a successful start-up that discovered a new way to perform dozens of medical tests using a small amount of blood. In 2014, investors valued the company at $ 9 billion.
But the U.S. Department of Justice prosecutor Prosecution Holmes and former Theranos president Lamesh Barwani claimed in 2018 that they mispromoted the company’s technology, even though they knew there was a reliability problem.
“The main thing is to show that prosecutors know that these tests aren’t working,” said Cheryl Bader, an associate professor at Fordham University and a former federal prosecutor.
Prosecutors also allege that Holmes and Barwani misrepresented Theranos’ financial position to investors, claiming that the company would make $ 1 billion in revenue in 2015, when it had little sales.
Holmes lawyers have previously tried to dismiss the proceedings, claiming that the indictment was too vague. Judge Edward Davila of the United States dismissed their allegations last October.
Last March, Davila ordered the two defendants to be tried separately. Holmes lawyers claim that her ex-boyfriend, Barwani, abused the founder of Theranos and influenced her judgment. Balwani denied the claim.
The prosecutor has submitted a list of witness candidates, including former director Henry Kissinger. Attorney David Boyes, former outside adviser to the company. Media mogul Rupert Murdoch, an investor in Theranos.
Holmes lawyers said the Theranos investigation could seek testimony from John Kaleiro, a former Wall Street Journal reporter who helped the company collapse. It is unclear whether Holmes himself will testify in a trial that is expected to last for months.
Silicon Valley culture faces questions as Theranos founder’s trial begins Source link Silicon Valley culture faces questions as Theranos founder’s trial begins