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Theranos CEO Admits to Doctoring Lab Reports

Elizabeth Holmes, the founder and former CEO of Theranos, took the stand again on Tuesday, confirming major portions of the prosecutor’s claims in the 11 counts of fraud she faces, but insisting that she did nothing wrong. The prosecution has repeatedly presented jurors lab papers with the logos of Pfizer and Schering-Plough pharmaceutical corporations. The usage of the logos was unapproved, according to witnesses from companies that cooperated with Theranos, and they were ignorant of it at the time.

As she pursued an agreement to place her blood-testing startup’s diagnostic equipment in the pharmacy’s retail outlets, Holmes admitted that she was the one who added the logos to lab results and sent them to Walgreens. When Theranos transitioned from on-site analyzers to a centralised lab approach, Holmes said it used third-party devices rather than its own equipment as a “innovation” because there were too many samples to handle. Witnesses stated that Theranos‘ distinctive blood-testing machine failed quality assurance tests time and time again, resulting in incorrect findings.

The company didn’t tell its business partners about the deal because it was a trade secret, according to Holmes. She refuted the prosecution’s assertions concerning some of the alleged misrepresentations she made to investors, the media, and business partners, saying she had received specific favourable reports from workers and outside experts and believed their statements were accurate.

Defense counsel Kevin Downey questioned Holmes about specific incidents raised by the prosecution after being shown business emails and PowerPoint slides. Theranos‘ fourth-generation device was developed, according to an email forwarded to Holmes by then-chief corporate scientist, biochemist Ian Gibbons. The emails between Holmes and her lab workers, as well as many other evidence, should be interpreted as signs of Holmes’ “state of mind,” rather than facts of what actually transpired, according to U.S. District Judge Edward Davila.

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