00:00In the high-profile trial of Theranos founder Elizabeth Holmes, prosecutors have been trying
00:05to prove that Holmes intentionally defrauded patients and investors by making false claims
00:10about her company's blood testing technology.
00:13Holmes has pleaded not guilty.
00:14This company is about being able to change the healthcare industry.
00:19As prosecutors continue to make their case, speculation has grown about whether Holmes
00:24will take the stand.
00:25All these witnesses we've heard from have said how they were totally enamored by her.
00:29They totally believed her.
00:30She had a presence that controlled her room.
00:33To catch you up on three key pieces of evidence presented at trial so far and a look at what's
00:38to come, we talk to Wall Street Journal reporter Sarah Randazzo, who's been covering the trial
00:42in California.
00:44First, audio recordings have given jurors the chance to hear Holmes pitch Theranos to investors
00:49in 2013.
00:50The ability to take a technology like this and put it in flight, specifically on a medevac,
00:58has the potential to change survival rates.
01:01We're hearing Elizabeth Holmes touting how they can do all of these things with the machines,
01:05how they're working with the military, and the military is huge for them.
01:08And so all of these things that at this point the jurors have heard contained a lot of falsehoods
01:13and weren't quite true, and so now they're hearing Elizabeth Holmes say it directly, which
01:17is pretty powerful.
01:18Some investors said Holmes' promise to help members of the military compelled them to invest
01:23in the company.
01:24In cross-examination, attorneys for Holmes have made the case that Theranos investors
01:28should have asked questions if they had concerns.
01:31And that they knew investing in a new type of technology, like the kind Theranos was developing,
01:35came with risks.
01:37Prosecutors also read private text messages between Holmes and her former boyfriend,
01:41Sunny Balwani, who is the number two at the company.
01:43There's a lot of text showing Sunny and Elizabeth texting about concerns or things that they're worried about.
01:49In one 2015 message, following media appearances made by Holmes, Balwani wrote,
01:54FYI, I am worried about overexposure without solid substance, which is lacking right now.
02:00Holmes responded that the media coverage helped Theranos get a business deal.
02:04It's important because a big part of this trial is showing Elizabeth Holmes' intent and that she intended to deceive.
02:09So if jurors can come to believe that she thought there were a bunch of concerns but then publicly was saying nothing was wrong,
02:15that can help them in their deliberations.
02:17The defense has argued that Holmes relied on Balwani for accurate information about the company
02:22and that she believed she was telling the truth about Theranos.
02:25Balwani, who faces his own separate trial, has denied any wrongdoing.
02:30Another key piece of evidence shown by the prosecution, an allegedly forged endorsement.
02:35This document, emblazoned with the Pfizer logo, purported to show that Theranos' technology had been validated by the pharmaceutical giant.
02:42But prosecutors say it was used to deceive investors.
02:45What's come out is that they did work with Pfizer in the very early years of the company.
02:50Pfizer then had a scientist, Shane Weber, analyze everything that they'd seen and internally write a report that concluded they didn't want to pursue their relationship.
02:58Weber said he himself told Holmes that Pfizer wasn't interested in working with Theranos.
03:03But about a year later, Theranos put out a report with the Pfizer logo on it, which Holmes used to pitch to investors.
03:09Some investors testified that they took the report at face value and that it played into their decision to invest many millions of dollars.
03:16Of course, there's been plenty of other evidence presented at trial so far, which you can read more about at WSJ.com.
03:24So what's next in the closely watched trial?
03:26The defense will soon have a chance to make its case, and it could go a few different ways.
03:30As lawyers suggested in a court filing, they could argue that Holmes was in an abusive relationship with Balwani that left her under his control.
03:37A lawyer for Balwani disputed any allegations of abuse.
03:41Or, as the defense argued in opening statements, it could continue making the case that Holmes simply had a startup that failed, like many others in Silicon Valley.
03:49The defense could also simply rest, hoping that prosecutors didn't prove Holmes' guilt beyond a reasonable doubt.
03:54I think it's going to be a bit of a surprise and shock moment in court when they stand up and say whether they're calling someone or just resting the case.
04:03Holmes is facing 12 counts of wire fraud and conspiracy to commit wire fraud, with the top charges carrying a maximum federal prison sentence of 20 years.
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