Elizabeth Holmes takes the stand for a third day

Feelings Drama

Watch Elizabeth Holmes takes the stand for a third day - Feelings Drama on Dailymotion

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00:00Elizabeth Holmes back on the stand for the third day in her criminal fraud trial.

00:04It's still her defense team's turned questioner.

00:07They're trying to convince the jury that the Theranos founder thought her blood testing machines worked

00:11and didn't mean to mislead doctors, patients, and investors.

00:15Except today, she admitted to her role in one of the key pieces of evidence that prosecutors have presented.

00:22CNBC's Scott Cohn live outside the courthouse in San Jose, California with the latest.

00:27Scott?

00:27Kelly, court just wrapped up for the day.

00:31We expect Elizabeth Holmes will leave any time now as she begins and the court begins

00:35and the jury begins the long Thanksgiving break with no court tomorrow.

00:39Elizabeth Holmes' launch to media and Wall Street stardom really began in 2013

00:44when Theranos announced a joint venture with Walgreens for in-store testing.

00:49But she acknowledged today in her first full day on the witness stand

00:52that the company was beset with a lot of big issues right around that time as she was becoming a star.

00:59Still, she claimed that she never approved any marketing materials that she thought were misleading,

01:05including when the company sent around some altered documents.

01:10That was one of the most stunning revelations in the government's case.

01:13Equally stunning today, Elizabeth Holmes owned it.

01:17It was the white-collar equivalent of a smoking gun in the prosecution case.

01:24A scientific report on the merits of Theranos technology shown to investors and prospective business partners

01:30with the logos of Pfizer and Theranos side-by-side at the top.

01:35But a Pfizer executive testified the drug company had nothing to do with the document.

01:40So who put the Pfizer logo on the report?

01:43I did, Holmes testified.

01:45She says she wanted to show that the research was done in partnership with Pfizer,

01:50not to falsely claim that Pfizer was endorsing the technology.

01:54In hindsight, she says, I wish I had done it differently.

01:58Holmes' defense in the case, maybe she was inexperienced

02:01and under pressure to bring her product to market amid mounting problems, but she never lied.

02:07Yes, she acknowledged, Theranos processed some tests for Walgreens

02:11on third-party equipment instead of its own.

02:13But it was because of changes Walgreens demanded in their agreement.

02:17She says she didn't tell Walgreens about the third-party equipment

02:20in order to protect trade secrets.

02:24That secret being that Theranos engineers had figured out how to process

02:29small blood samples on that third-party equipment.

02:32Of course, what she didn't say was that testing on that equipment was notoriously error-prone,

02:40yet another of the problems that Theranos was dealing with.

02:43As I said, court is now done for the long Thanksgiving Day weekend.

02:47When she comes back on the witness stand on Monday,

02:49she will continue with friendly questioning from her attorney, Kevin Downey.

02:53Then it's the government's turn for what we expect will be some very long,

02:59very intense cross-examination.

03:01And we now have all weekend to think about it.

03:03Scott, thank you so much.

03:04Our Scott Cohn.

03:06Shepard Smith here.

03:07Thanks for watching CNBC on YouTube.

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