Jerome Powell says supply chains may continue to boost inflation, and the Fed will react

[ad_1]

Erin Griffith headshot

 

Erin Griffith

Weber called Elizabeth Holmes to tell her Pfizer wasn’t going to work with Theranos. In an email to a colleague, he said “I was polite clear crisp and patiently firm as she pushed back.” Writes that Holmes asked for other names at Pfizer to talk to and he “politely deflected.”

Erin Griffith headshot

 

Erin Griffith

The document further lists six technical due diligence questions that Weber asked Theranos execs on a phone call, and concludes their answers were “oblique, deflective or evasive non-informative answers.”

Erin Griffith headshot

 

Erin Griffith

Most of Weber’s answers have been very technical and full of jargon sure to confuse jurors but that list of adjectives hits pretty hard. (Defense tried to object.)

Erin Griffith headshot

 

Erin Griffith

Further in his summary, Weber says Theranos’s conclusions are “not believable” and calls the company’s answers to due diligence questions “non-informative, tangential, deflective or evasive”

Erin Griffith headshot

 

Erin Griffith

(Recall that last week we saw a document with Pfizer’s logo on it that implied that the company validated Theranos’s technology, which Holmes used to solicit investment from Walgreens and others)

Erin Griffith headshot

 

Erin Griffith

After talking with Elizabeth Holmes and reviewing a bunch of documents (including a patent), Weber created a summary report on the use of Theranos technology. Believe this is the report the defense didn’t want shown to jurors, and the judge allowed Page 1. Weber’s recommendation: “Theranos does not at this time have any diagnostic or clinical interest to Pfizer.”

Erin Griffith headshot

 

Erin Griffith

We begin with a series of emails establishing why Weber was involved with Theranos at Pfizer — his role was to make a recommendation to the company about its technology. “We were looking for diagnostic capabilities that would open the door for more effective intake of patients.”

Erin Griffith headshot

 

Erin Griffith

The U.S. has called Shane Weber, who was a scientist at Pfizer. He is speaking loudly and clearly into the mic and for that I thank him. 🙏

Erin Griffith headshot

 

Erin Griffith

Sounds like we’ll be hearing from our first investor (aside from Walgreens): Brian Tolbert of the investment firm Hall Group is likely to testify today.

Erin Griffith headshot

 

Erin Griffith

🩸 Back in court for the fraud trial of Elizabeth Holmes. It is rainy, the prosecution plans to call four witnesses today, and the press corp is typing every so carefully after being scolded for distracting a juror with our keyboards.

Erin Griffith headshot

 

Erin Griffith

As usual, we are starting late because the lawyers are fighting over admitting a document and there is an issue with a juror.

Erin Woo headshot

 

Erin Woo

Edlin is excused, and we are breaking for the day. Erin Griffith will be in the courtroom on Friday when trial resumes.

Erin Woo headshot

 

Erin Woo

Edlin on his choice to leave: “In the year after the initial WSJ articles came out, the company claimed that it would be able to prove that the technology worked and prove that those claims were not true. The company was unable to convince anyone that those claims were untrue and that its technology and science worked. That gave me serious doubts as to whether the company was capable of proving its technology worked.” He came to the conclusion they would never be able to prove it, he said.

Erin Woo headshot

 

Erin Woo

Bostic: At Theranos, whose decision was it to disclose what information to the press? Edlin: In my experience, Elizabeth was the only person who communicated directly with the press. Bostic: Did anyone make decisions about what she was allowed to say? Edlin: I don’t know if she consulted with anyone.

Erin Woo headshot

 

Erin Woo

Bostic: Who did the final review of investor presentations? Edlin: Elizabeth.

Erin Woo headshot

 

Erin Woo

Now, looking at when Holmes weighed in on website language, asking to say a 4-hour window rather than 2 hours. Rather than addressing this, Bostic seems to be pointing out that in other cases (including website/investor presentations), language around “superior accuracy” made it in.

Erin Woo headshot

 

Erin Woo

OK, and we’re now back to an email Downey brought up, where Holmes wants to put the language around the venous draw in the main body of text. The language she wanted called venipunctures “uncommon.” Bostic points out that venous draws were used in 40 percent of the time at Walgreens.

Erin Woo headshot

 

Erin Woo

Bostic: Who had final say over what results were reported in the demo? Edlin: Daniel did and Elizabeth did.

Erin Woo headshot

 

Erin Woo

Bostic: Was part of that a desire to show that the technology performed well? Edlin: Yes. Bostic: How is this purpose served by hiding errors? Edlin: I don’t know. Bostic: What about withholding results? Edlin: I don’t know.

Erin Woo headshot

 

Erin Woo

Rapid-fire questioning from Bostic just now. Edlin: The purpose of the tech demonstrations was to “showcase or demonstrate the Theranos technology. In some cases, tests were run. In others, tests weren’t run. In general, to show the functionality of the Theranos technology.”

Erin Woo headshot

 

Erin Woo

Back from break, and Bostic says he has around 30 minutes left of cross-examination. Downey says that we’ll finish with Edlin today. We’re now looking at a document regarding the Limited Objective Experiment with the U.S. Central Command, which Edlin testified again did not occur. Completion of this study was a prerequisite to clinical use of Theranos devices by the military, Edlin confirms.

Erin Woo headshot

 

Erin Woo

Downey wraps cross, and Bostic is back for redirect. We’re starting with the relationship with the military. Bostic notes that only 28 people participated in the burn study. Edlin also doubles down on his previous testimony that the military never used Theranos devices on soldiers.

Erin Woo headshot

 

Erin Woo

Looking at another email about the brochure for Walgreens, where Christian Holmes is relaying feedback from Elizabeth. Throughout cross, Downey has brought up emails/instances where Elizabeth has advocated for transparency and disclosure to counteract what we saw in direct.

Erin Woo headshot

 

Erin Woo

Back from break and looking at a presentation Edlin helped prepare for an investor. In an email questioning the accuracy of a claim in one graph, Holmes wrote: “If they currently do refrigerate then we should reflect that so we are making an accurate claim.”

Erin Woo headshot

 

Erin Woo

Downey is trying to establish that the use of the demo app, brought up by the government, isn’t deceptive/malicious, pointing out that someone may show up and not get their blood drawn and that there were different protocols for different scenarios.

Erin Woo headshot

 

Erin Woo

Downey is discussing the demo app, which as shown before shields failures from the patient. “You were not trying to deceive anyone in this demo process, correct? And you did not understand that anyone else at Theranos was trying to deceive anyone in this process?” Edlin agrees.

Erin Woo headshot

 

Erin Woo

Shifting topics to demos, after around an hour of questioning about Theranos’s military relationship. Around 10-15 people worked on the team to do demos, with Daniel Young reviewing and approving all demos, Edlin testifies.

Erin Woo headshot

 

Erin Woo

Givens wrote that the machine “seemed to function well in the environment,” and her only complaint was the touch-screen. She wrote that she hoped to get funding for a full proposal.

Erin Woo headshot

 

Erin Woo

Downey is bringing up emails from Melissa Givens of U.S. Africa Command and former Theranos V.P. Daniel Young indicating that the device performed well in high temperatures in Africa. Yesterday, the government showed evidence saying that the devices couldn’t operate over 82 degrees.

Erin Woo headshot

 

Erin Woo

Good morning from San Jose! Daniel Edlin is back on the stand. We’re still expecting former Pfizer diagnostics director Shane Weber next.

Erin Woo headshot

 

Erin Woo

We’re breaking for the day. I’ll be back tomorrow at 9 a.m. for more of Edlin’s cross-examination.

Erin Woo headshot

 

Erin Woo

Downey asks Edlin a series of questions around whether he ever took steps to put forward any claim he knew to be false. Edlin says repeatedly that he did not. “That information was reliant on information you had gotten from scientists in the company, correct?” “Yes.”

Erin Woo headshot

 

Erin Woo

Downey started by having Edlin confirm that he was not a tech expert — Edlin majored in public policy at Duke.

Erin Woo headshot

 

Erin Woo

And — defense changes the subject completely. We’re back to talking about Theranos’s technology as we begin cross-examination.

Erin Woo headshot

 

Erin Woo

With that, we’re through with direct and onto cross. Testimony is scheduled to end at 3 today, so Edlin will likely continue tomorrow.

Erin Woo headshot

 

Erin Woo

Edlin said he was in meetings where Balwani said he would defer to…

[ad_2]

Read More: Jerome Powell says supply chains may continue to boost inflation, and the Fed will react