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Theranos founder Elizabeth Holmes yesterday finished testifying after seven days of questions about her decision-making at the failed blood testing start-up, as one of Silicon Valley’s most closely watched fraud trials neared its conclusion.
Holmes took questions about the company’s revenue projections and media strategy as prosecutors wrapped up their cross-examination.
Holmes, who faces 11 counts of wire fraud and conspiracy to commit wire fraud — each carrying up to 20 years in prison, betrayed little emotion and appeared defiant battling suggestions that she misled investors about the capabilities of Theranos’s devices. She has pleaded not guilty.
Some of the most sensational testimony came on Tuesday when prosecutors questioned Holmes about revenue forecasts Theranos had produced for an investor, which differed from the company’s own internal projections.
Holmes’ testimony included allegations of abuse against her former boyfriend and business partner Ramesh “Sunny” Balwani. Lawyers for Balwani have denied the accusations.
At its peak, Theranos was a widely heralded start-up whose aim was to lower the cost and discomfort of routine blood testing. Investors valued the company at $9bn. But in 2015, a Wall Street Journal article questioning Theranos’s technology sent it into a tailspin, and it shut down three years later.
Closing arguments in the case, which got under way in September, are scheduled for December 16 and could last as long as two days.
Thanks for reading FirstFT Americas. Here’s the rest of today’s news — Gordon
Five more stories in the news
1. Big Four post strongest performance since Enron Accounting firms Deloitte, EY and PwC and KPMG have recorded their strongest collective result since the Enron scandal led to the collapse of Arthur Andersen in 2002, racking up $167.3bn in annual turnover as corporate clients rushed to transform during the coronavirus pandemic.
2. Joe Biden makes diplomatic concession to Russia The US president made a significant diplomatic concession by signalling that he wanted to convene meetings between Nato allies and Russia to discuss Vladimir Putin’s grievances with the transatlantic security pact. Biden said he hoped to announce the high-level talks by Friday.
3. Evergrande rated ‘restricted default’ Fitch has become the first rating agency to declare that China Evergrande’s overseas bonds are in default after the world’s most indebted developer failed to make a crucial interest payment this week. Fitch also stated that Kaisa, another heavily indebted developer, was in restricted default.
4. DoJ notifies Deutsche Bank of criminal settlement violation Deutsche Bank has been notified by the US Department of Justice that it may be in violation of a criminal settlement after it failed to alert authorities about an internal complaint at its asset management division, according to people familiar with the matter.
5. Instagram chief calls for rules to protect children on social media Adam Mosseri, Instagram’s chief executive, has called for an external regulator to set rules on how social media companies protect children. The comments came during a congressional hearing into the effects of the platform on younger users.
Coronavirus digest
A third BioNTech/Pfizer Covid-19 shot offers protection against the Omicron variant, but just two doses show reduced effectiveness, preliminary research suggests. Pfizer said yesterday it expects to have a vaccine that specifically targets the new variant available by March.
The UK’s health secretary has warned that the rapidly spreading Omicron variant of coronavirus could infect 1m people. The pound dropped yesterday to its lowest level against the dollar in more than a year as the prospect of new restrictions clouded the economic outlook.
Employees at US rideshare company Lyft have been told they do not need to return to offices until 2023 at the earliest.
Brazil’s central bank has lifted interest rates to the highest point in more than four years as it battles double-digit inflation. The Selic benchmark was raised 1.5 percentage points to 9.25 per cent. The FT’s inflation tracker analyses rising prices around the globe.
The day ahead
Joe Biden’s ‘Summit for Democracy’ begins The two-day virtual meeting hosted by the White House will feature the heads of 111 governments and emphasise liberal values. But the guest list has attracted controversy.
Senate vote to raise US debt ceiling The Senate is expected to inch a step closer towards raising the debt limit with a simple majority. A deal struck by Congressional leaders earlier this week would allow Democrats to act unilaterally to raise the borrowing limit, without the risk of a Republican filibuster.
Nubank IPO Shares in South America’s most valuable start-up, which is backed by Warren Buffett, begin trading in New York after it raised $2.6bn in an initial public offering.
Starbucks union vote result Baristas at three Starbucks stores in Buffalo, New York, find out whether their workplaces will become the coffee company’s first unionised outlets in the US.
Earnings Broadcom, one of the world’s biggest semiconductor makers, reports fourth-quarter earnings. Investors will be looking for an update on supply shortages that have led to delays of everything from cars to electronics and toys.
Former Treasury secretary Larry Summers will be in conversation with Martin Wolf in the keynote interview on the third and final day of the FT’s Global Boardroom digital conference. Register here.
What else we’re reading
Disney’s chief is planning to do things his way Bob Chapek borrowed billions, sidelined insiders and irked the talent. But it’s all part of the plan, say Christopher Grimes in Los Angeles and Anna Nicolaou in New York in a report for FT Magazine.
Joe Biden must build on his dialogue with Xi Jinping In the aftermath of the recent video conference between US president Joe Biden and President Xi Jinping of China, Washington faces a dilemma, writes former World Bank president Robert Zoellick: how to engage Beijing when Biden’s leading officials have declared that engagement has failed?
How’s the economy really doing? That depends on your perspective, writes Gillian Tett. Economists and policymakers need to upgrade their systems for tracking the economy now, which includes blending quantitative and qualitative perspectives.
Using ‘synthetic data’ to uncover Syrian war crimes Researchers are increasingly turning to “synthetic data” instead of real images to train artificial intelligence programs to recognise weapons used in the conflict and captured on social media. But can the technique adequately represent reality?
Oil and gas majors compete for talent Europe’s oil majors have set out strategies to cut greenhouse gas emissions to net zero by 2050. But achieving those targets requires recruitment and retraining on a scale never seen before. Can they convince potential recruits to get on board?
“You need to have a credible and meaningful strategy and show how people can make a difference” — Ronan Cassidy, Shell’s chief human resources and corporate officer
Wellbeing and fitness
Our colleagues on the How To Spend It magazine have selected six new ways to optimise your health this winter.
Source: Economy - ft.com
