OPEC and Russia will ponder oil output under pressure from Biden.


Erin Woo headshot

 

Erin Woo

Cross is done, and we’re onto redirect. Schenk says he has just “a couple of questions.”

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Erin Woo

Back to some of the website language that came up in Edlin’s testimony. “Occasionally, a venipuncture may be required based on the lab order, but this is uncommon, and our aim is to eliminate this entirely.” Mosley: “I don’t believe I knew this at the time.

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Erin Woo

We’re looking at an archived copy of the Walgreens website. A prominent heading: “Goodbye big, bad needle.” A footnote all the way down the page notes that testing could happen with a finger stick or venous draw. Mosley says he doesn’t remember seeing this language.

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Erin Woo

We’re returning to due diligence. Wade asks if Mosley looked at the Theranos website, and Mosley responds, “I can’t imagine that I didn’t look at the website.”

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Erin Woo

Kissinger is quoted in this Parloff article saying that “there is no performance associated with” Elizabeth, which is ironic, given that her public persona — the voice, the turtlenecks, the red lipstick, etc. — was such a huge part of the Theranos myth!

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Erin Woo

Mosley testifies that the article was “a very compelling story” that was “absolutely” impactful when he read it. Wade’s going through the article page by page.

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Erin Woo

We’re back to the Parloff article! Mosley sent it to the C.E.O. of the DeVos family office.

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Erin Woo

Holmes spoke on an hour-long panel called “Game Changers.” (Wade wanted to publish more of this document, which listed all of the different speakers at the 2014 BDT conference, but Judge Davila said it wasn’t relevant.)

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Erin Woo

We’re discussing an investor conference where Mosley met Holmes for the first time. Wade asks if Mosley would characterize it as a “Woodstock for private family offices,” the best line of the day thus far; Mosley declines but agrees that it was for “high net worth individuals.”

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Erin Woo

Wade is now talking about the Pfizer report. He has Mosley confirm that he thought Pfizer had written the report, but never actually directly asked whether Pfizer had.

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Erin Woo

Wade is asking about Mosley’s characterization of Theranos’s “national retail footprint,” noting that the Walgreens partnership was only in CA and AZ — seemingly trying to show that Mosley may have also overstated Theranos’s reach.

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Erin Woo

Mosley also wrote: “The most extensive evidence supplied regarding the reliability of the Theranos technology and its application is a Study Report prepared by Pfizer based on a clinical cancer treatment trial.” As we know, Pfizer didn’t prepare it.

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Erin Woo

We’re back to the memo Mosley wrote. He referred to a Johns Hopkins review that concluded that the technology “is novel and sound.” Mosley also noted the Walgreens partnership. Wade asks: Would you expect Walgreens to do due diligence? Mosley responds: Yes.

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Erin Woo

Wade is walking us through the binder Theranos gave Mosley to review. Included in the binder: a line claiming that “Theranos technology is able to perform the full menu of laboratory tests,” along with around 200 pages of supporting material.

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Erin Woo

Still, in a 9/2/14 memo Mosley wrote to Kissinger, he wrote: “There is substantial data and other information attesting to the quality, performance and reliability of the Theranos technology and equipment.” Wade highlights this line.

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Erin Woo

Wade asks Mosley to confirm that he hadn’t done substantial research into the company at this point, and Mosley counters that he doesn’t think he would have had a way to.

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Erin Woo

Mosley testifies that his 2014 analysis of Theranos came from printed materials provided by the company and his conversations with Holmes. Wade notes that Mosley didn’t mention media in his outline, but Mosley said he had “certainly” read media articles about the company.

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Erin Woo

He was also connected with the Oppenheimer family ($20 million) and John Elkann ($5 million), who were friends of Kissinger’s but not Mosley’s clients.

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Erin Woo

Mosley was VERY well-connected with Theranos’s investors. Per a slide entered into evidence, he was the attorney for the Walton family ($150 million invested), DeVos family ($100 million), Cox family, ($100 million), Andreas Dracopoulos ($25 million), Henry Kissinger ($3 million).

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Erin Woo

Good morning! I am back in the courtroom for the Elizabeth Holmes trial. After some pretrial arguments about whether testimony from a patient called BB should be excluded (no decision yet disclosed), the lawyer Daniel Mosley is on the stand to continue his cross.

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Erin Griffith

The jury is dismissed for the day. Chaotic vibes today, between the guy who snapped a photo in the courtroom, a stifling 76 degree room and a worked up person in the hall bugging journalists about their parking dispute.

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Erin Griffith

Mosley’s description of what he does at BDT is comically vague. “I’m involved in the management of the firm, I run the New York office. We advise and work with high net worth families and I do that type of work.”

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Erin Griffith

I imagine this will be a contentious cross-examination. We’re already talking third-generation billionaires and levels of white shoe law firm prestige.

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Erin Griffith

Theranos’s investment docs had a provision for mandatory redemption, i.e., the company could buy back shares at any price at any time. 🤔 Holmes reassured Mosley that wouldn’t happen.

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Erin Griffith

We see a list of Theranos’s risks in Mosley’s memo to Kissinger. Prosecution asks why it doesn’t list the risk that Holmes could give inaccurate descriptions of her company’s technology. “I did not believe it was a risk,” he says.

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Erin Griffith

Mosley testifies that he liked that Elizabeth Holmes’ shares in Theranos had 100x voting power of the other investors. “She was obviously a visionary that had created this company and developed the technology and having her in control of the company was a good thing.”

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Erin Griffith

Mosley wrote a memo to Henry Kissinger about Theranos’s technology with a strong, strong endorsement. He believed fully in the conclusions from the pharma validation reports.

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Erin Griffith

Byron Trott’s firm, BDT, threw a conference in Chicago in 2014, where Mosley introduced Holmes to the DeVos family, the Walton family and the Cox family — all clients of his.

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Erin Griffith

We talk about the revenue projections and Schenk pre-empts the defense’s argument that projections are about the future and not supposed to be accurate by asking Mosley about that. Since it was October, Mosley expected the $140 million revenue projection for the year to be pretty close.

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Erin Griffith

It is incredible how much mileage Holmes got out of one Fortune article. I think every investor who has testified said they read it. I guess prosecution keeps bringing it up because we know the author Roger Parloff will soon testify.

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Erin Griffith

We run through the entire rigmarole we have now seen many times: listing out the specific and clear promises Theranos made to investors about its technology and the investor testifying they invested on that information.

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Erin Griffith

We’re looking at illegible handwritten notes Mosley took and it feels like deciphering ancient scrolls

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Erin Griffith

Holmes snail mailed Mosley a thick stack of presentations in 2014. We discuss lines like: “The company plans to be private for the long term.” “Theranos has grown from cash from its contracts for some time.”

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Erin Griffith

The Web of Powerful Men goes on: We see an email where Mosley offers to connect Holmes to the Walton family. Mosley says Holmes wanted investors who were “high quality families.”

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Erin Griffith

Next witness is Dan Mosley, a lawyer and guy about business. He invested $6 million in Theranos after Henry Kissinger, his client, introduced him in 2014. He now works for Byron Trott, Warren Buffett’s banker who was discussed during the DeVos testimony.

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Erin Griffith

Theranos’s work with S-P fell off when the company merged with Merck. We see emails from Holmes to Cullen trying to move the validation forward with no response from Cullen. Kline make the final point that S-P never told Holmes about her concerns.

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Erin Griffith

Kline, who is a lot folksier than Wade, asks Cullen to repeat that she never voiced her concerns with Theranos to the company because it was awkward. Apart from one email, is Cullen aware of any emails from S-P or Theranos asking for more information? “No.”

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Erin Griffith

(Note: This was 2009.) “There was insufficient technical detail for us to be able to evaluate the technology.” She says Holmes answered almost exclusively, even questions directed to others.

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Erin Griffith

Cullen testifies she never objected to the validation protocol. We see the invoice for Theranos’s work with S-P with the objective of…



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