Brian Grossman says Holmes lied about Theranos finger-prick tech
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Elizabeth Holmes, the founder of Theranos Inc. leaves San Jose Federal Court on Tuesday Aug. 31, 2021.
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SAN JOSE, CALIF. — Theranos’ CEO Elizabeth Holmes mislead a manager of hedge funds who invested $96M in the company.
Brian GrossmanPFM Health Sciences chief investment officer told jurors that Holmes’ criminal trialHe informed us Tuesday night that he had taken his own blood from the Theranos machine in 2014. Walgreens pharmacy.
Grossman said that he had his blood drawn using a venous line and not a fingerstick. He also stated that the experience corroborated what he was told about Theranos.
Grossman stated that he spoke with Holmes, her chief executive Ramesh Balwani and their Palo Alto office, California offices in December 2013. Grossman said that Holmes was the one who spoke most and that Theranos would run 1000 blood tests using its technology.
Grossman explained that Holmes “actually was very clear” and said they could match any Labcorp and Quest test. Grossman said that this was a big statement on how far they’d come and where technology stood at the time.
Previous witnesses (including lab associates) Erika CheungThey have also testified to the fact that Theranos can’t perform more than 12 different tests. This contradicts company statements.
Grossman claimed that Theranos told him that it was working with military personnel and that the company’s technology is being used to provide medivacs for the battlefield.
What better place to apply a technology such as this than in military settings under extreme conditions, like those one might expect from a country like Afghanistan or Iraq? Grossman stated. Grossman said that Theranos stated it received “something more than $200 million from the Department of Defense”.
Daniel Edlin, a former Theranos employee, told jurorsLast month, he discovered that the Middle East had never seen the blood-testing equipment.
“No confusion, no ambiguity”
Grossman stated that he had sent an email to Balwani and Holmes in January 2014 with the subject “Due Diligence questions” after his first meeting.
PFM’s questions fell under seven categories. He was interested in more information about issues such as how accurate and fast the tests were compared with those of traditional vendors, technology limitations and whether Walgreens had an exclusive relationship.
Grossman explained that the group of them came up together with questions to help better understand the company. We wanted to be able to answer the same questions as possible so that there wasn’t any ambiguity or confusion about the technology.“
PFM met again with Holmes and Balwani. Grossman stated that Holmes left halfway through the meeting. Grossman testified that Theranos employees told him then that they could return the results in less than four hours for retail outlets and in one hour for hospitals.
Grossman stated to the jury that Holmes had never informed him that the company used third-party blood test machines. Grossman shared his personal experience at Walgreens. Grossman stated that it was a surprise to discover that blood was taken from Grossman’s arm. The results of his tests took Grossman more than four hours.
“I inquired” [Balwani]Grossman stated that he was not able to give me a fingerstick or explain why the venous draw took so long. I also inquired why my results took so long to come back.
Grossman stated that Balwani had assured him the test was abnormally ordered by his doctor.
PFM had invested $96.1million in Theranos during February 2014. Grossman explained that the $2.2million investment came from a fund of friends and relatives. Grossman also stated that it had funds from low-income individuals.
PFM is eventually settledIt sued Theranos, accusing it of securities fraud.
Holmes pleaded guilty to the 12 charges of wire fraud and conspiracy for wire fraud. Grossman, a witness for the prosecution’s case, testifies to one count of wire fraud.
Holmes has been sitting at the defense bench for 11 weeks while government witnesses testified. It remains to be seen if the defense will make a case for Holmes after the trial is over.
Lance Wade, an attorney representing Holmes said that before the jury was allowed to enter the courtroom, “We don’t even know if the defense case exists and if so, what it might be.” We’re still involved in the case of the government.
The government received a list last week from Holmes’ defense team. Wade stated that they are not presenting a defense by giving the government a list of potential witnesses.
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