Former Theranos CEO Elizabeth Holmes outside the hearing at the Criminal Fraud Trial on May 4, 2021.
Pregnant Elizabeth Holmes appeared in court for the first time in 15 months at a three-day hearing that set the stage for her criminal fraud trial.
In a session on Tuesday in the Federal Court of Justice in San Jose, Judge Edward Davila only allowed Holmes, her defense lawyer, and an internal prosecution. When Holmes stepped into court, she refused to answer a question from Scott Corn on CNBC.
At a hearing that lasted more than seven hours, both sides talked about key moves that determine what evidence the jury will hear, including how Silicon Valley culture influenced Holmes’ behavior as CEO of Theranos. Has sparred. The company closed in 2018 after a Wall Street Journal survey revealed unproven technology and suspicious business practices.
“Silicon Valley will be exaggerated and there will be a natural debate about startups and how they operate,” Davira said. He determined that the defense could not classify her as an unfairly chosen one.
The prosecutor warned the judge that he would give Holmes room to argue that her behavior was no different than any other start-up.
“When they talk about corporate secret practices in Theranos, I want to pay attention to what the defense draws with a very wide brush,” said Jeff Schenck, assistant US prosecutor.
A sketch of the courtroom of Elizabeth Holmes, the former CEO of Theranos, May 4, 2021.
Vicki Behringer licensed to CNBC
Holmes’ lawyer states that the prosecutor has filed a radical proceeding based on anecdotal evidence. Theranos technology has run 7 to 10 million tests over a two-year period. Holmes lawyer Amy Saharia said the case “would be a vast mess of irrelevant and unfavorable evidence.”
“Everyone has become accustomed to testing this year. There are many variables involved in testing. The government has no scientific basis to provide, so we need to prove that Theranos technology is the cause of the wrong results. Just because it happened doesn’t mean it’s because of Theranos technology. “
The problem was just a few of the more than 20 motions that judges are expected to rule this week.
One is a motion from Holmes to block evidence of her wealth, spending and lifestyle from the jury. Prosecutors continue to conceal her fraud, claiming Holmes’ “desire to maintain wealth and status has created a strong motivation.” Holmes was once considered the youngest female billionaire with an estimated net worth of $ 4.5 billion.
A former Theranos executive near Holmes told CNBC, “I don’t think Elizabeth thought there was sunlight between her and the company. She thought she was the company.” He asked not to name him because it could endanger future employment opportunities.
Holmes was once a media darling on television networks and magazines, but has remained a mother since being charged with nine wire fraud and two wire fraud plots. A former executive told CNBC that she was “essentially optimistic.”
“There was such a myth around her, and to some extent I think she recognized it and accepted it.”
“Everyone who has paid attention has only heard negative things about her,” said NBC News legal analyst Danny Cevallos. “The fall from her grace was spectacular. There are probably a lot of juries you’ve heard about Holmes, and that’s probably not good.”
Judge selection is scheduled to start on August 31st.
“She has her core [of] A small supporter who says she was unfairly portrayed and abused until her death, “said a former Theranos executive.
Elizabeth Holmes reappears in court as lawyer spar
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