Former Theranos CEO Elizabeth Holmes out of trial on May 4, 2021 in her criminal fraud lawsuit.
A pregnant Elizabeth Holmes appeared in court for the first time in 15 months for a three-month hearing that would set the stage for her criminal fraud trial.
In Tuesday’s session in San Jose federal court, Judge Edward Davila allowed only Holmes, his defense lawyers and the prosecution. As Holmes stepped into the courtyard, he refused to answer CNBC’s Scott Cohan’s questions.
The hearing, which lasted more than seven hours, distracted both sides from significant motions that would determine what the jury would hear, including how Silicon Valley’s culture affected Holmes’s behavior as CEO of Theranos Will happen. The company shut down in 2018 after a Wall Street Journal investigation uncovered unproven technology and questionable business practices.
“Silicon Valley is an exaggeration, there’s going to be a natural discussion of start-up companies and how they work,” said Davila. He ruled that the defense would not be able to wrongly classify him as a song.
Prosecutors warned the judge that Holmes needed to give too much room to argue that they were no different from any other start-up.
Assistant U.S. Attorney Jeff Schenk said, “Explaining the trade secret practices in Theranos, I want the defense to be painting with a very broad brush.”
A sketch of the court in the court of former Theranos CEO Elizabeth Holmes on May 4, 2021.
Vicky Behringer licensed CNBC
Holmes’ lawyers say the prosecution has made a comprehensive case based on prior evidence. Theranos technology performed between seven and ten million tests over two years. Amy Saharia, a Holmes lawyer, said the trial was “a major cause of irrelevant, prejudicial evidence.”
He said, “We’ve all become very familiar with the test this year. The test involves many different variables. Whatever the government proposes is without a scientific basis, they have to install the Theranos technology that will lead to erroneous results. Was responsible for. Just because it didn’t happen. It was because of Theranos’ technology. “
The judges were told of more than two dozen motions, which judges are expected to rule this week.
One is a motion from Holmes that blocks evidence from the jury about his money, expenses, and lifestyle. Prosecutors accused Holmes of “maintaining a desire to maintain her property and status and created a powerful motive for her to conceal the fraud”. Holmes was once considered the youngest female billionaire, with an estimated earnings of $ 4.5 billion.
A former Theranos executive close to Holmes told CNBC, “I don’t think Elizabeth believed that there was daylight between the company and the company. She saw herself as the company.” This person did not name for fear of jeopardizing future employment opportunities.
Holmes, once a media darling who made the rounds of appearances on television networks and magazines, has remained mum since he was charged with nine counts of wire fraud and two counts of conspiracy to commit wire fraud. The former executive told CNBC that he is “an inherently optimistic person.”
“Such a legend was built around him. And I think to some extent, he recognized and embraced it.”
NBC News legal analyst Danny Cavallos said, “Anyone who has noticed has only heard negative things about him.” “His fall from grace was spectacular. Holmes can be heard about by a lot of gamblers who have heard of it and it is probably good.”
The jury’s selection is scheduled to begin on August 31.
“He has his origins [of] The former Theranos executive said, supporters, a little, but supporters of his dying day, say he was misbehaved and misbehaved.
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