00:00Prosecutors getting ready to finish up their case against Elizabeth Holmes, the founder of the failed blood testing company Theranos.
00:07And Scott Cohn joins us now with where things stand in the trial. Hey, Scott.
00:13Hey, Joe. Federal prosecutors have been laying out their case for 11 weeks now that Elizabeth Holmes lied to investors, doctors and patients about the technology she claimed could conduct a full range of tests on a tiny sample of blood.
00:30The 29th and apparently final government witness is Fortune magazine writer Roger Parloff, who wrote a glowing cover story about Holmes back in 2014.
00:40Turns out that Parloff recorded many of his conversations with Holmes for that story, including when he asked if Theranos could really perform the same tests on a few drops of blood that competitors needed a whole vial for.
00:53Does your platform replace all of those?
01:03Our platform can yield, let me think of the best way to say this, we can do all of those tests.
01:13So we can provide data back to clinicians for all the same tests.
01:21That, prosecutors say, was a lie.
01:26Theranos insiders have testified the device could only perform a handful of tests and often got them wrong.
01:32Parloff will be back on the stand for cross-examination today when court resumes in a few hours.
01:37Then it's the defense's turn.
01:39How will they counter the government's case?
01:41Will Elizabeth Holmes herself take the stand?
01:44We may be about to find out.
01:45Joe?
01:47Still a careful answer, kind of.
01:50The way I heard it is, yeah, we can provide data about all that.
01:56None of it's real.
01:58But we can provide.
01:59You can't believe the amount of data we can provide from our single drop.
02:03Right.
02:03She didn't say we can provide real data that's true and that actually, wasn't she very guarded and careful the way she's, I just wonder if she knew at that time that it was just a crock.
02:16Well, that's what the government has to prove, that as she was telling not just journalists but also investors, that she knew that it didn't work.
02:25And the prosecutors and some of these Theranos insiders have said yes.
02:29And interesting, Roger Parloff did a lengthy correction about a year later after the Wall Street Journal came out with its damning articles about Theranos.
02:38And he said Elizabeth Holmes Theranos misled me, and he specifically says she didn't lie, but that those issues, those particular questions about how many tests could they perform, she definitely obfuscated.
02:53Right.
02:53We can provide data on all those tests, Scott.
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