Saudi Press

Saudi Arabia and the world
Friday, Apr 26, 2024

Elizabeth Holmes: Alleged fraudster CEO tells court she believed her revolutionary technology was real

Elizabeth Holmes: Alleged fraudster CEO tells court she believed her revolutionary technology was real

The founder and former chief executive of Theranos has taken to the witness stand to justify her actions, but faces cross-examination from prosecutors.

Elizabeth Holmes, the founder and former chief executive of Theranos, has told a court that she initially believed her company's revolutionary blood tests were not the fake technology they ultimately proved to be.

Holmes' testimony from the witness stand on Monday focused on how enthusiastic her belief was in Theranos' finger-prick blood tests based on some early research which indicated they were promising.

She is facing charges that she knowingly duped investors and patients into believing that the company's technology was legitimate and revolutionary, when it actually did not work.

The trial, which began in early September, is being seen as emblematic of more than just the misdeeds of key staff at this one Silicon Valley medical technology firm but of the 'fake-it-until-you-make-it' culture among many other start-ups.

The scandal at the company was revealed in 2015 in a front-page story in the Wall Street Journal which claimed the company's blood testing technology was so flawed Theranos was actually using equipment made by other businesses to carry out tests in its laboratories.

Three years later criminal charges were filed against Holmes and Romesh Balwani, her former boyfriend and the president and chief operating officer of Theranos, accusing them of fraud.

The pair are charged with engaging "in a multi-million-dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients" and each face two counts of conspiracy to commit wire fraud and nine counts of wire fraud.

Theranos made misrepresentations to doctors and patients about the reliability of its tests, the Department of Justice alleged.

The executives were also accused of making misrepresentations to investors about the financial condition of the company, celebrating expected sales of over $1bn when they were actually bringing in just a few hundred thousand.

Balwani's trial is being heard separately to that of Holmes.

Elizabeth Holmes faces up to 20 years in prison if found guilty.


As reported by the Associated Press, Holmes was posed friendly questions on Monday by her attorneys in an attempt to sway the jurors who would determine whether the former billionaire, now 37, goes to prison potentially for up to 20 years.

Holmes attempted to make eye contact with the jurors while referencing studies, conducted with major pharmaceutical companies from 2008 to 2010, which found that the third generation of a Theranos blood test was showing promise.

The focus was not on the test itself however but on the effect that these initial reports would have had on Holmes' state of mind.

Her decision to take the witness stand was surprising to some as it opens her to cross-examination from prosecutors who will have the opportunity to pore over potential contradictions in her public statements.

The trial is expected to continue into December.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×