Elizabeth Holmes trial: Defense lawyers for Theranos founder argue ‘failure is not a crime’
Jury choice starts for Theranos CEO Elizabeth Holmes. FOX Business’ Lydia Hu with the latest.
Lawyers for Theranos founder Elizabeth Holmes argued throughout opening statements at her hotly predicted fraud trial on Wednesday she was a naïve entrepreneur who unsuccessful to build her blood-tests startup as a feasible enterprise.
Federal prosecutors and Holmes’ attorneys delivered contradictory accounts in their initially remarks to the jurors in the San Jose courtroom. Holmes stands accused of defrauding buyers and the community by professing her now-defunct startup’s blood-screening equipment was capable of functions it couldn’t carry out.
“In the finish, Theranos failed and Ms. Holmes walked away with almost nothing,” Holmes’ defense lawyer Lance Wade explained, according to Reuters. “But failure is not a criminal offense. Hoping your most difficult and coming up short is not a criminal offense.”
THERANOS AND ELIZABETH HOLMES Trial: WHAT TO KNOW
Wade additional that Holmes was “all in on Theranos, determined by its mission, not funds, dedicated to that mission until finally that pretty past day.”
Holmes, 37, was as soon as regarded a growing enterprise star. Theranos drew a $9 billion valuation while Holmes touted a breakthrough product that could accomplish an array of medical tests with just a couple drops of a patient’s blood. But the firm collapsed following a collection of Wall Road Journal experiences discovered the technologies did not do the job as Holmes claimed.
Federal prosecutors argued Holmes was aware that Theranos’ technologies was ineffective. They alleged she lied to traders to enrich herself and manage a continual move of income into her business.
Assistant U.S. Legal professional Robert Leach outlined various cases in which Holmes allegedly lied to buyers with statements that Theranos’ units were being becoming used by the U.S. military services on battlefields and drawing curiosity from main pharmaceutical corporations.
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“This is a situation about fraud, about lying and cheating to get money,” Leach stated.
The two authorized groups produced references to former Theranos chief working officer Ramesh “Sunny” Balwani, whom Holmes at the time dated and faces his individual trial on fraud expenses.
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Holmes’ lawyer indicated in courtroom filings that she allegedly endured an abusive connection with Balwani, in accordance to stories. Balwani has denied the promises.
Holmes faces 10 counts of wire fraud and two counts of conspiracy to commit wire fraud. She has pleaded not guilty. Each individual count of wire fraud carries a highest sentence of 20 years in prison.