Elizabeth Holmes confirms that she never misled investors

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Elizabeth Holmes with her partner Billy Evans walk to court. Jurors hear the explanations of her former CEO.

Elizabeth Holmes, founder of Theranos, testified that she never lied to investors when her defense team dismissed her case during her trial for criminal fraud.

Ms. Holmes, 37, has pleaded not guilty. She lied that her firm could detect disease with just a few blood drops.

Prosecutors claim she knew that she was deceiving investors and patients.

Her defence says she was merely a naïve businesswoman whose firm failed.

Later in the month, deliberations will start for members of the jury.

Over seven days of testimony Ms Holmes made mistakes, but she insisted that she never defrauded investors or patients.

On Wednesday, her lawyer asked her if she had ever made patients believe that Theranos offered health testing services. She replied “Ofcourse not.”

If Ms. Holmes was asked whether she has ever tried to deceive investors, her response was “Never.”

The firm, at one point valued at $9bn (£6.5bn), was once the start-up darling of Silicon Valley thanks to its promise to revolutionise the healthcare industry. Theranos fell apart in 2016 when a Wall Street Journal report revealed that the company’s core blood-testing technology was not working.

The prosecution must prove to the jury that Holmes was aware she was lying.

Cross-examination revealed that she admitted errors to a Fortune magazine 2014 cover story written by Roger Parloff. This helped propel the young founder into stardom. Robert Leach, Assistant US Attorney in America, presented Tuesday to Ms. Holmes an excerpt from the story that claimed the company provided more than 200 diagnostic testing using Theranos technology.

When Mr Leach asked Ms Holmes if she thought that was incorrect, she replied “I believe this now.”

Last week, Ms. Holmes testified that Theranos began using third-party blood testing machines by 2014.

Investors were presented with a revenue projection of $1bn, which she did not explain. Internal estimates for 2015 were closer to $113m. She also denied claims she had lied about Theranos being used in military helicopters to investors.

“My testimony, I don’t believe that I said that,” she stated.

Her defence team countered that Holmes was a hard worker and devoted her entire life to a product that would improve lives. She also blamed Ramesh Balwani (her ex boyfriend, former Theranos executive) for her actions.

Ms. Holmes claims that her 19-year-old husband, Mr. Balwani, has abused her emotionally and sexually. Ms. Holmes described an intimate relationship in which Mr Balwani controlled her management of Theranos and who she talked to. He also dictated how she ate, what she said, and how they spoke.

They ended their decade-long partnership just as Mr Balwani, the CEO, resigned in May 2016.

Balwani will stand trial in January, despite denying allegations of abuse. If he is called to testify at the Ms Holmes trial, he has indicated that he will invoke his constitutional rights to silence.

Many aspects of her story are well-known, but some of her testimonies have been surprising.

Last week, she testified that she was raped as a Stanford University student. She said that the assault caused her to quit school and concentrate full-time on her business.

Through tears, she stated that “I chose to put my self into building Theranos.” “I made the decision that this was how I wanted to live my life.

Ms. Holmes has been charged with 11 counts each of wire fraud or conspiracy. Each of the 11 counts carries a sentence maximum of 20 years prison.

Expect closing arguments to be held on 16/12/17/12, and jury deliberations to commence on 17/12/20/12.

Source: BBC.com

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