Live updates: Elizabeth Holmes testifies in her own trial | CNN Business

Elizabeth Holmes testifies in her own trial

07 Elizabeth Holmes Theranos fraud trial 1123 SKETCH
Disgraced CEO takes the stand during criminal trial
02:07 - Source: CNN

What we covered here

  • Elizabeth Holmes, the disgraced founder and former CEO of Theranos, is set to resume testifying Tuesday in her own criminal trial.
  • Holmes’ direct examination by her lawyer concluded on Monday. Now the government is about to get its turn to question her.
  • Holmes faces 11 federal fraud charges over allegations that she knowingly misled investors, doctors and patients about her company’s blood testing capabilities in order to take their money. Holmes has pleaded not guilty and faces up to 20 years in prison.
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Holmes trial recesses for the week, defense expects to rest its case soon after her testimony

Court has recessed for a long weekend, with the trial slated to resume next Tuesday, December 7, at 9am local time.

Holmes will be back on the stand to continue her cross examination. After the jury was excused, the prosecution indicated that it expects Holmes’ testimony to wrap as soon as Tuesday. Holmes’ defense team indicated its case likely “will not last the balance of next week after Ms. Holmes’ testimony.” 

Next week will be the fourteenth week of the trial.

Holmes testifies she made changes to reports with pharmaceutical company logos

Elizabeth Holmes did more than just add logos of pharmaceutical companies to reports prepared by Theranos, giving the appearance the companies backed their findings: She also tweaked language on the reports.

After Holmes made the striking admission during her direct testimony that she herself added Pfizer and Schering-Plough logos to reports prepared by the company, prosecutor Robert Leach showed jurors other changes made to reports before being sent to stakeholders. On the Pfizer report, changes included removing the words “prepared for Dr. Aidan Power” of Pfizer, which would have given a clearer indication that the report originated from Theranos. Language was also added to the top of the Schering-Plough report, including a typo. Holmes testified it was likely her who added the language. 

Numerous investors and business partners have testified that they believed reports Theranos sent purporting to validate its technology had been prepared by the pharmaceutical companies and indicated endorsement.

In addition, Leach asked Holmes whether she added GlaxoSmithKline’s logo to a report about a study done with the pharmaceutical company before sending it to Walgreens. “I assume so,” Holmes testified. Did she have permission, Leach asked. “I don’t know,” she responded.

Unlike Pfizer and Schering-Plough, GlaxoSmithKline had provided a document with some of its views on the study done with Theranos but did not give permission to use its logo. Additionally, Leach pointed out that some language was deleted, including that the “finger prick/blood draw procedure was difficult.” Asked if Holmes removed this language herself, she testified: “I don’t know.”

Prosecution has Holmes read intimate texts between her and Balwani

Elizabeth Holmes reacting during cross examination at the federal court in San Jose, California, on Tuesday November 30, as she was asked to read texts between her and former Theranos COO Ramesh "Sunny" Balwani.

Throughout the criminal trial of Elizabeth Holmes, jurors have heard texts between Holmes and Ramesh “Sunny” Balwani read aloud in the courtroom. But the texts took on a different air Tuesday when Holmes herself read them a day after alleging in testimony that their relationship had been abusive.

In her testimony Monday, Holmes said Balwani, who served as the company’s COO for a time and who is facing the same criminal fraud charges in a separate trial next year, sexually and psychologically abused her throughout their decade-long relationship.

During the government’s cross examination of Holmes, which began Tuesday, prosecutor Robert Leach had Holmes read aloud texts messages. Holmes at times grew emotional on the stand when reciting some of the more loving messages shared between them.

”U r God’s tigress and warrior. You are extraordinary,” one 2015 text from Balwani read. “Coming from my tiger means the whole universe to me,” Holmes replied.

In the texts, the two also strategize about the business, and at times Balwani raises concerns about everything from overexposure in the media to getting more tests approved for its finger stick blood tests.

“Worried about over exposure without solid substance which is lacking right now,” he said in a May 2015 text. “We must hit our volume goals now,” he said a month earlier, adding that it had to be “a matter of life and death.”

In questioning Holmes about the texts in the context of her allegations about the relationship, the prosecution has to carefully walk the line of establishing Holmes as in control and discrediting her experience as an alleged survivor of intimate partner abuse.

According to Eugene Soltes, a professor at Harvard Business School, jurors are likely interpreting the texts in very different ways. “Inevitably, there’s at least someone that probably feels uncomfortable. It is one thing seeing pieces about the business,” he told CNN Business in a conversation this fall about the role texts may play in the trial. Soltes noted that jurors may be asking themselves, “‘How relevant is the relationship?’ To different people, that’s either very relevant or very invasive.”

Legal experts say there are limitations to what texts can actually show about a relationship, even without the complications of abuse allegations.

“They can be a mixed bag,” Miriam Baer, a professor at Brooklyn Law School told CNN Business in a conversation this fall. “On one hand, they can be very powerful,” allowing jurors to get a look at what Holmes is thinking and saying at the time of the alleged fraud. On the other hand, she said, texts don’t give the full picture. “They can be taken out of context.”

Prosecution questions Elizabeth Holmes on efforts to suppress Theranos whistleblowers

Tyler Shultz (left, in 2019), Elizabeth Holmes (center, in 2021), Erika Cheung (right, in 2019).

Elizabeth Holmes was pressed by prosecutor Robert Leach about the lengths that she and her company went to try to suppress whistleblowers ahead of the Wall Street Journal’s damning expose on Theranos.

Holmes acknowledged that she hired Boies Schiller, the law firm of high-powered attorney David Boies, to serve paperwork to former staffers Erika Cheung and Tyler Shultz after learning they were talking to Wall Street Journal reporter John Carreyrou. Holmes maintained that she was concerned about protecting trade secrets and stopped short of conceding that she, or the company, had retaliated against either.

Leach noted the company spent roughly $150,000 on two private investigation firms to “aid in its efforts against Cheung.” Holmes testified: “I’m not sure.” Leach attempted to refresh her memory with documentation, but Holmes said it didn’t refresh her recollection.

Cheung, who testified earlier in the trial, was a former lab worker for Theranos who raised concerns about the company’s lab practices that were dismissed internally. During the defense’s cross-examination of Cheung, Holmes’ attorney attempted to highlight her lack of experience and qualifications as a recent college graduate whose first job was with the startup.

Holmes acknowledged on the stand Tuesday that she “sure as hell” wished Cheung had been treated differently, and that the company had listened to her concerns.

Cheung testified that she had a close relationship with Shultz, who attempted to raise concerns to Holmes, as well as to his grandfather, the former Secretary of State George Shultz, who sat on the company’s board and who frequently spoke with Holmes. (Tyler Shultz had been listed as a possible government witness but wasn’t called to testify.)

Holmes confirmed she knew that Boies Schiller lawyers showed up at George Shultz’s home in an attempt to get the younger Shultz to sign paperwork. Holmes also acknowledged that she was aware Theranos caused “significant angst” in the relationship between grandfather and grandson.

“I couldn’t say more strongly, the way we handled the Wall Street Journal process was a disaster,” she said. “We totally messed it up.”

Cross-examination begins with questions on Wall Street Journal investigation

Federal prosecutor Robert Leach began his questioning of Elizabeth Holmes on Tuesday by asking about the Wall Street Journal’s 2015 investigation that raised questions about Theranos’ testing abilities.

Leach referenced Holmes’ previous testimony that the company’s response to learning about the Journal investigation was “too aggressive.” Holmes acknowledged that previous statement, but said the company “wanted to make sure our trade secrets weren’t disclosed.”

Holmes denied that she and former Theranos COO, Ramesh Balwani, tried to obstruct Journal reporter John Carreyrou’s reporting and influence his visit to a Theranos wellness center, but said they were “very worried” about his story.

Holmes reiterated her regret for how Theranos reacted to the story, including her treatment of one of the company’s whistleblowers, Erika Cheung. “I sure has hell wish we’d treated her differently,” Holmes said of Cheung, later adding: “I think I mishandled the entire process of the Wall Street Journal reporting.”

At another point in her testimony, Holmes said: “I couldn’t say more strongly: the way we handled the Wall Street Journal process was a disaster. We totally messed it up.”

The government gets its chance to question Elizabeth Holmes

Elizabeth Holmes arriving for court at the Robert F. Peckham Federal Building on November 22, 2021 in San Jose, California. 

After months of mounting its case against Elizabeth Holmes, the government will finally get a chance to put its allegations directly to her as it is set to begin its cross-examination on Tuesday.

The cross-examination comes after an emotional testimony from Holmes on Monday. Holmes testified that she had been raped while at Stanford University and later suffered emotional and sexual abuse by her ex-boyfriend and former Theranos COO, Ramesh “Sunny” Balwani. (Balwani’s attorneys have previously denied those allegations.)

In her prior testimony on the witness stand, Holmes had admitted to some of the prosecution’s most damning allegations while offering up alternative explanations. She attempted to sow doubt that she had any intention to deceive — a key part of what federal prosecutors are seeking to prove.

Holmes and Balwani were indicted on the same federal fraud charges over allegations that they knowingly misled investors, doctors and patients about Theranos’ blood testing capabilities in order to take their money. Both have pleaded not guilty and face up to 20 years in prison. (Balwani’s trial is slated to begin early next year.)

Over the course of 11 weeks, federal prosecutors called 29 witnesses to the stand, including scientists, doctors, retail executives, former employees and even a former Defense Secretary. Through them, the government attempted to unravel the many layers of the alleged deception that led investors and patients to believe Theranos’ false promises that it could accurately, reliably and efficiently conduct a range of tests using just a few drops of blood.

Multiple high-profile witnesses testified about Holmes’ charisma and, according to the former CEO of Safeway, her unusually hands-on role “negotiating completely on her own.” Investors and retail executives testified that they were kept in the dark about the company’s true capabilities. And former employees testified that they alerted Holmes directly to the lab’s issues, to little effect.

As Stanford Law School professor Robert Weisberg previously noted to CNN Business, anything Holmes testifies about could potentially be impeached by what she’s said and written over the years.

Miriam Baer, a law professor at Brooklyn Law School, noted that, “if she appears to evade questions, she may inadvertently strengthen the government’s narrative.”

Text messages offer a glimpse into the relationship between Holmes and Balwani

Elizabeth Holmes testified on Monday that Ramesh “Sunny” Balwani, her ex-boyfriend and former Theranos COO, would berate her for her “mediocrity” and try to control how much she worked, slept and even what she ate. Holmes also said he “would force me to have sex with him when I didn’t want to.”

In court filings unsealed ahead of the trial, Holmes’ legal team had signaled that the former Theranos CEO was likely to defend herself by claiming she was the victim of a decade-long abusive relationship with Balwani. Balwani’s attorneys have denied those allegations.

As part of her testimony Monday, text messages were presented from February 2015, which offered a glimpse into their relationship.

“I’m sorry I wasn’t stronger for you this morning,” she wrote. “That is my responsibility and my role. I will never let that happen again.”

Balwani responded that he was “strong enough for me and u and then some. I don’t need you to be strong for me.”

Holmes testified that the exchange took place after one of the “incidents” between the couple, and that she thought her role was to calm him when he was angry.

“My job is to love you when you’re stressed,” she wrote in a subsequent text.

Balwani responded: “I know.”

Holmes' team concludes its direct examination of the failed entrepreneur

At the end of her fourth day on the stand, Elizabeth Holmes’ direct examination is done.

In her testimony on Monday, a visibly emotional Holmes revealed that she dropped out of Stanford at age 19 because she was raped, and detailed alleged sexual and verbal abuse by her ex-boyfriend and Theranos’ former COO Sunny Balwani.

In the last hour, however, Holmes’ attorney Kevin Downey switched gears to the technical details of Theranos machines and their testing abilities, introducing multiple articles in scientific journals on the company’s technology and documents that described in detail how they worked.

Downey concluded by asking Holmes about some high-profile investors and the “vision” she sold them for Theranos’ future, with Holmes saying her goal was to improve access to testing and medical data to catch diseases earlier and treat them more effectively.

When asked why she never sold her 50% stake in Theranos — valued at one point at $4.5 billion — despite board members and investors urging her to, Holmes said she “didn’t want to.”

“I believed in the company and wanted to put everything I had into it,” she added.

In response to a final question from Downey, Holmes confirmed that those shares are now worth nothing.

Prosecutors are expected to begin their cross examination of Holmes shortly after 9 a.m. PT/noon ET on Tuesday.

Holmes says ex-boyfriend, former Theranos COO "wasn't who I thought he was"

Former Theranos COO Ramesh Balwani appears in federal court for a status hearing on July 17, 2019 in San Jose, California.

Holmes testified extensively about how Balwani, who faces the same charges as Holmes and has pleaded not guilty, shaped her business acumen — and how she ultimately lost faith in him.

“He had taught me everything that I thought I knew about business sand I thought he was the best business person that I knew,” she said. “I think that I didn’t question him in the way that I otherwise would have.”

However, she said that view changed following the results of the 2015 inspection by the Centers for Medicare & Medicaid Services that would end with the license of its California blood-testing facility being revoked and Holmes being banned from running a lab for two years.

Balwani oversaw the lab and Holmes testified that she’d thought Theranos had one of the best labs in the world prior to that.

“He wasn’t who I thought he was,” she said. 

Balwani would leave the company in May 2016. Holmes was living with him at the time but didn’t continue her personal relationship with him after he left Theranos. Holmes testified her brother helped her move out while Balwani was in Thailand. The two had a personal relationship for 13 years and a professional one for seven.

After detailing Balwani’s influence, Holmes’ attorney asked her if Balwani forced her to make statements to investors, retailers, board directors and journalists that jurors have heard about in the course of this case. Holmes testifies no to all.

Her attorney followed up to ask what impact, if any, did Balwani have on your work at Theranos in your view? “I don’t know. He impacted everything about who i was and I don’t fully understand that.”

Holmes testifies she left Stanford because she was raped

Elizabeth Holmes testified that there was another reason she left Stanford to build Theranos: In an emotional moment, she testified that she was raped. In the aftermath, she said she wasn’t attending classes and left to pour herself into building her company instead.

“I decided I was going to build a life by building this company,” she said.

Holmes testified that she found comfort in Ramesh “Sunny” Balwani, who she first met in China after she graduated high school. She was 18 and he was 38.

When she later disclosed to him the trauma of her rape at Stanford, she testifies: “He said that I was safe, now that I had met him.”

Holmes would go on to paint a picture of how Balwani both coached and controlled her.

“He told me that I didn’t know what I was doing in business, that my convictions were wrong, that he was astonished at my mediocrity,” she said, adding that he told her that “I needed to kill the person I was” to become successful.

She testified that he told her that if she wanted to become a good entrepreneur, she needed to spend all her time on the business and only doing things that could contribute to making the company successful. That meant, she testified, not sleeping very much, only eating foods that “would make me pure.”Holmes’ attorney presented handwritten notes from Balwani to Holmes.

“Every morning I will force myself out of bed and spend 30 minutes+ (never a minute less to write what I want from my day,” one note read. “I will never meet … anyone for more than 5 minutes unless I have written down why.”

In the notes, Balwani said she was going about her meetings wrong: “I will always give crisp, clean goals and feedback to my subordinates, even if they don’t like it — especially if they don’t like it.”

Holmes testified: “He was talking about me, and the idea that even if I didn’t have a natural instinct for business I could be taught to overcome that with a formula for business that … he said he would teach me.”

“The single most important ingredient to this secret sauce is Discipline,” a note from Balwani read. The second most important is “self discovery.“

“He said I was a little girl,” and needed to be more serious, Holmes testified.

“He would get very angry with me, and then he would sometimes come upstairs to our bedroom and he would force me to have sex with him when I didn’t want to, because he would say that he wanted me to know that he still loved me,” she said.

She testified that he complained she spent too much time with her family.

“I hate this,” read a text from Balwani.

“He’s angry with me because he feels like when my family came for Thanksgiving I was not paying attention to him and I was distant from him and he doesn’t want to engage with me anymore,” Holmes explained. “This was one of the nights where he came upstairs and did things to me that I didn’t want.”

In court filings before the start of the trial, Balwani’s attorneys said he “adamantly denies” the claims and called the allegations that Balwani verbally disparaged her, controlled what she ate, how she dressed, and who she interacted with, are “deeply offensive to Mr. Balwani” and “devastating personally to him.”

Holmes pushes back on suggestions she misled regulators

Under questioning by her attorney Kevin Downey, Holmes addressed and refuted allegations that she intended to mislead investors and regulators.

Downey referenced the “null protocol” that Theranos developed for its devices — a process by which the device’s display would show a mock test result even without a blood sample inside, rather than an error message. The protocol was sometimes used in the technology demonstrations Theranos gave to investors, business partners, board members and other VIP guests.

Downey asked if Holmes was ever concerned that process was misleading, or if anyone at Theranos expressed concerns to her about it being misleading.

Her answer to both questions: “Not at all.”

Downey later brought up another allegation, that Theranos hid parts of its lab and facilities from inspectors belonging to the Center for Medicare and Medicaid Services, or CMS in 2013. Asked if she told any employees to hide any aspect of Theranos’ operations, Holmes said: “Absolutely not.” 

Elizabeth Holmes denies telling people Theranos devices were being used on medevacs

Elizabeth Holmes testifying in the courtroom at the Robert F. Peckham Federal Building on Monday November 29, 2021 in San Jose, California. 

Elizabeth Holmes testified Monday that she never told anyone her company’s technology was being used on medical evacuation helicopters, despite earlier witness testimony indicating she had.

Holmes testified that she had tried to convey the work the company had been doing to develop blood-testing devices for use on medevacs in remote areas. She said she was “very proud” of the work they were doing to make the devices ready for use in those situations and areas.

“I would talk about it on occasion,” she said, but testified she made clear that “we were prioritizing our retail locations more than anything at that point.”

Some Theranos investors previously testified that they were impressed by a misleading claim that Theranos’ technology was being tested in Afghanistan and on military helicopters. When asked directly by her attorney Monday if she had told anyone that Theranos devices were being used to provide clinical care on medevacs, Holmes testified: “I don’t think I did.”

Holmes spoke to an agreement Theranos struck with the Department of Defense’s US Central Command in 2012 concerning a study to send Theranos’ systems to Afghanistan. The purpose of the study was to test them against “traditional reference methods to evaluate their use in Afghanistan and other remote areas.” 

Holmes said there was a lot of work that needed to be done to get to the point of deploying its devices for the study. That included customizing a device that would be specific to the Defense Department’s requirements and most useful in that particular setting. Holmes testified that “tens of millions of dollars” was invested in doing so, but ultimately, the study was never performed.

“We weren’t able to finish the work in time,” Holmes said, citing the timelines in the contract. The company was also working towards its retail launch with Walgreens at the time.

Holmes’ attorney asked where she was disappointed? “Very much so, but I continued to believe that we would see it through.”

Defense nears end of direct questioning of Holmes

Elizabeth Holmes’ attorney indicated Monday that he is nearing the end of his direct questioning of his client, telling the judge that he expects to conclude today. Monday marks Holmes’ fourth day testifying in her criminal fraud trial.

Next, the government will get its turn to question her. Legal experts expect the cross examination of Holmes to be “really, really rigorous.”

Holmes’ defense attorney, Kevin Downey, said he expects the government’s cross examination to stretch most of the day Tuesday. Downey said the defense may begin its re-direct of Holmes late Tuesday or next week.

The trial, now in its thirteenth week, is not in session the rest of this week after Tuesday. It resumes next Tuesday, December 7.

Elizabeth Holmes trial hit by more tech issues

Elizabeth Holmes’ months-long trial has faced a number of logistical disruptions and concerns, from several jurors dropping out for various reasons to a burst water pipe shutting down the court for more than a day.

But a recurring problem has been the monitors that show jurors, journalists and courtroom observers the exhibits being discussed. Those monitors went down again on Monday, with Judge Edward Davila saying, “I’m informed the jury monitors are not operational.”

Earlier this month, the court was forced to use a projector to display exhibits on the wall. While it hasn’t quite resorted to that as yet on Monday, Judge Davila called an indefinite recess to fix the issue before the jury comes in — delaying Holmes’ expected reappearance on the stand by more than 30 minutes.

Elizabeth Holmes wants court to hear more from Ramesh Balwani, her former COO and ex-boyfriend

Former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California. Former Theranos CEO Elizabeth Holmes and former COO Ramesh Balwani were appearing in federal court for a status hearing at the time.

Elizabeth Holmes wants the court to hear more from Ramesh “Sunny” Balwani, Theranos’ former COO and her ex-boyfriend.

Before Holmes retook the witness stand on Monday, Judge Edward Davila heard arguments for nearly an hour from the parties about whether Holmes can introduce statements Balwani has previously given under oath where he addressed his role at the company.

Holmes’ counsel filed a motion last week after court recessed for the holiday to admit prior testimony that Balwani gave in Securities and Exchange Commission depositions. Holmes’ defense said Balwani’s attorney indicated he would invoke his Fifth Amendment rights if called to testify by Holmes’ counsel, according to a court filing, and therefore it wants to admit his prior testimony.

“Ms. Holmes desires to call Mr. Balwani as a witness in her defense case to testify to his management of certain aspects of Theranos’ operations put at issue in the government’s case in chief, including the CLIA laboratory operations, the Walgreens and Safeway relationships, the company’s financial model, and a software protocol used in certain technology demonstrations,” read a court document.

The prosecution is pushing back, arguing that Balwani’s prior testimony should be denied. One of the reasons cited is that Balwani had a “motive of love” at the time of his earlier statements, which the government argued came one year after their decade-long relationship ended and don’t meet the “trustworthiness” threshold. As evidence of this, the government filed text messages in which Balwani speaks about his love and devotion to Holmes.

The parties also argued over whether Balwani, or his counsel, needed to be called before the court to indicate if Balwani would indeed plead the Fifth. Assistant US Attorney Kelly Volkar noted that there may be some questions he is willing to answer.

Holmes and Balwani were indicted on the same charges. Both have pleaded not guilty and face up to 20 years in prison if convicted.

Their trials were severed after Holmes indicated she may claim she was the victim of a psychologically, emotionally and sexually abusive relationship and that due to the nature of their relationship, she believed what she was being told about the company’s technology and its business dealings. Balwani’s attorneys denied those allegations. His trial is slated to begin early next year. 

While Holmes has yet to speak about the personal nature of their relationship before jurors, Balwani’s name came up numerous times Tuesday, as she testified that he was responsible for the company’s financial documents and projections. One of the ways in which the government has alleged Theranos misled investors was through false and misleading financial statements and models.

Holmes and Theranos settled with the SEC in March 2018 over allegations that Holmes and Balwani raised $700 million through an “elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.” Balwani is fighting the charges.

Dozens line up early outside courthouse for new week in Elizabeth Holmes' testimony

Elizabeth Holmes is slated to resume testifying in her criminal fraud trial sometime after 10 a.m. PT on Monday, following a break for the holiday weekend.

Just before 5 a.m. PT, roughly 30 people – press and members of the public – had already lined up outside the downtown San Jose courthouse where her trial is entering its thirteenth week. Tickets to sit inside the courtroom are first-come, first-served and there are just 34 seats available. An overflow room which has a live video feed sits another roughly 45 people. 

Her defense attorney, Kevin Downey of law firm Williams & Connolly, will continue his questioning of Holmes. She has already spent roughly nine hours on the stand over the course of three trial days. There’s no clear timeline for when the defense will conclude its questioning. 

The government will then get its turn to confront Holmes about its allegations that she intentionally misled investors, doctors and patients about her company’s capabilities. To make its case, the government called up 29 witnesses over the course of 11 weeks, including investors, retail executives and former Theranos employees.

Court is in session just two days this week, Monday and Tuesday. It is slated to be in session four days next week – Tuesday through Friday. The Judge is eying December 17 as the date of completion.

What we've learned so far from Elizabeth Holmes' testimony

Elizabeth Holmes arriving at the federal court in San Jose, California, on Monday, Nov. 22, 2021.

For 11 weeks, the only words from Elizabeth Holmes in her criminal trial came from old TV interviews, an audio recording of an investor call and text messages presented to the jury.

But over the course of two days this week, and a brief appearance the week prior, Holmes took the stand for roughly nine hours before a packed San Jose courtroom. She testified about the origin of Theranos, the evolution of its blood-testing devices and the positive feedback she claimed to have received along the way.

Holmes admitted to some of the prosecution’s most damning allegations while offering up alternative explanations. At times, she displayed some contrition. But throughout her testimony, she attempted to sow doubt that she had any intention to deceive – a key part of what federal prosecutors are seeking to prove. She also deflected responsibility onto others by simply naming who held certain roles at the company.

“The defense can benefit if it can undermine the government’s narrative that Holmes knew about and directed the alleged fraud at Theranos,” said Miriam Baer, a professor at Brooklyn Law School, told CNN Business.

Read the full story.

The rise and fall of Elizabeth Holmes

Elizabeth Holmes’ story once had the hallmarks of a Silicon Valley legend.

Once hailed as the next Steve Jobs, she catapulted her startup to a $9 billion valuation on the promise that its technology could efficiently test for conditions like cancer and diabetes with just a few drops of blood taken by finger stick. (She claimed the inspiration for the company was her fear of needles.)

She secured key retail partners like Walgreens and Safeway, and was lauded on magazine covers as the richest self-made woman. Then the dominoes started to fall after a 2015 investigation into its testing methods and capabilities by the Wall Street Journal. Three years later, the company dissolved.

“The defendant’s fraudulent scheme made her a billionaire. The scheme brought her fame, it brought her honor, and it brought her adoration,” prosecutor Robert Leach said in an opening statement when the trial kicked off in early September. “She had become, as she sought, one of the most celebrated CEOs in Silicon Valley and the world, but under the facade of Theranos’ success, there were significant problems brewing.”

Here is a complete timeline of the downfall of Theranos.