Elizabeth Holmes Trial: Theranos Founder Testifies

The Holmes Trial: A Deep Dive into the Theranos Case

The question of whether Elizabeth Holmes, former CEO and founder of Theranos, would testify in her fraud trial was a central mystery. Late Friday afternoon, the Stanford University dropout unexpectedly took the stand, 11 weeks after proceedings began.

Prosecution's Case and Holmes' Defense

With the prosecution having presented witnesses – including former U.S. Secretary of Defense James Mattis, whistleblower Erika Cheung, patients, investors, medical professionals, and journalists – Holmes is now presenting her account of events. Her defense aims to demonstrate that she did not intentionally defraud investors.

Holmes faces two counts of conspiracy to commit wire fraud and nine counts of wire fraud. A conviction on each count carries a potential sentence of up to 20 years in prison.

Claims of Error, Not Fraud

So far, Holmes has maintained that while errors occurred at Theranos, the company’s ultimate failure wasn’t the result of fraudulent activity. She asserts that her statements to stakeholders reflected her honest beliefs at the time.

Acknowledging she isn’t a trained scientist, Holmes stated she relied on the expertise of those she hired. She even testified that scientists and engineers were responsible for creating the investor presentations.

Evidence Presented by the Defense

The defense has introduced emails from Ian Gibbons, Theranos’ chief scientist, indicating the machines had “demonstrated capabilities fully equivalent to lab methods” in areas where assay development had been completed.

Holmes testified that Gibbons’ emails suggested the 4.0 Edison machine “could run any test.” Gibbons tragically died by suicide in 2013 before he could testify in a patent dispute involving Theranos.

Dispute Over Pfizer Logo Usage

Holmes denied intentionally misleading Walgreens by including the Pfizer logo on documents without authorization. She expressed regret over the handling of the situation, explaining the logo was included because Theranos had previously conducted testing with Pfizer before they decided against collaboration.

Her defense also presented a Johns Hopkins University study from the same period, which described the Theranos technology as “novel and sound.”

Prosecution's Evidence and Pfizer's Denial

This response directly addresses a key prosecution claim: evidence that Holmes sent Walgreens a document in 2010 labeled “Pfizer Theranos System Validation Final Report.”

The prosecution demonstrated this document was created by Theranos staff, not Pfizer, and prominently featured Pfizer’s logo, implying endorsement. Theranos subsequently secured deals with Walgreens and Safeway.

However, a Pfizer scientist testified that Pfizer did not endorse Theranos and that no employees approved the document before it was sent during deal negotiations. Pfizer initially explored Theranos’ technology in 2008 but ultimately chose not to invest.

The Theranos Board and Corporate Jargon

Holmes has also discussed her relationship with the Theranos board members, who were compensated with $150,000 annual salaries and half a million shares. Former Secretary of State Henry Kissinger received $500,000 annually as a consultant.

Holmes appears to be attempting to portray the board as possessing sufficient knowledge to make informed investment decisions. Court reporters have noted her frequent use of corporate and scientific terminology during her testimony.

The Rise and Fall of Theranos

Elizabeth Holmes initially captivated investors with a compelling vision, securing substantial capital and achieving a $10 billion valuation. Her technology promised to run dozens of blood tests with a simple finger prick, offering quicker and more affordable disease detection.

She often repeated the poignant statement: “I hope that less people will have to say goodbye too soon to people that they love.”

However, it is now widely known – through documentaries and investigative books – that the technology did not function as promised, and the company continued testing patients despite knowing the results were unreliable.

The criminal trial commenced in early September in San Jose, California, following pandemic-related delays and Holmes’ childbirth, with Judge Edward Davila presiding.

Allegations of Abuse and Control

During her ascent, Forbes recognized Holmes as the youngest and wealthiest self-made female billionaire in America, portraying her as a charismatic genius akin to Steve Jobs.

However, court filings from Holmes’ defense allege that her former boyfriend and Theranos COO, Ramesh “Sunny” Balwani, was abusive and controlling. Her lawyers may present evidence of mental health impacts and the effects of this alleged abuse as part of her defense, potentially shifting blame to Balwani, who will be tried separately next year.

A Circus-Like Atmosphere

The courtroom has taken on a unique atmosphere during Holmes’ testimony. Law360 reporter Dorothy Atkins noted arriving at 4:30 AM to find herself 32nd in line to enter the courthouse.

Audience members have been asked to take notes silently, using touchscreens. Some journalists have even brought tarot cards to pass the time. This spectacle recalls the trial’s early days, when fans dressed as Elizabeth Holmes attended the proceedings.

Artist Danielle Baskin sold Elizabeth Holmes-inspired costumes in line, including blonde wigs and black turtlenecks, but was informed she couldn’t “sell merch” on federal property.

The Gravity of the Charges

Despite the surrounding fanfare, the evidence presented by the prosecution underscores the seriousness of the allegations: that Holmes knowingly defrauded investors by misrepresenting the capabilities of Theranos’ products.

Patient Testimonies

Former Theranos patient Erin Tompkins testified that a test result incorrectly indicated the presence of HIV antibodies. She was unable to confirm the results with another test for three months due to lack of insurance, causing significant distress.

Dr. Mehrl Ellsworth testified to receiving inaccurate results that falsely suggested he had prostate cancer.

Whistleblower Accounts and Concerns

Dr. Adam Rosendorff, the former Theranos lab director, testified that the company prioritized public relations and fundraising over patient care, and that Holmes proceeded with the commercial launch despite his concerns about the technology.

Whistleblower Erika Cheung recounted leaving the startup due to her discomfort with processing patient samples when she doubted the accuracy of the technology.

Looking Ahead

The trial will pause for the Thanksgiving holiday and resume on Monday with Holmes’ continued testimony. The defense is expected to continue presenting its case through mid-December.