Theranos Whistle-Blower Erika Cheung Concludes Her Testimony in Elizabeth Holmes Trial


SAN JOSE, Calif. — Erika Cheung, a key whistle-blower within the fraud trial of Elizabeth Holmes, the founding father of the failed blood-testing start-up Theranos, wrapped up her testimony on Friday after saying the corporate had put a precedence on pace over accuracy in its blood assessments and answering hours of questions by the protection.

Over three days of testimony, Ms. Cheung, a former Theranos worker, detailed how a number of the processes the corporate used to conduct its blood assessments have been problematic. Whereas the protection sought to point out that Theranos’s procedures have been rigorous and sophisticated, Ms. Cheung mentioned on Friday that its precedence was to conduct assessments as rapidly as potential and that its machines usually failed their quality-control checks.

Ms. Cheung mentioned Theranos’s blood assessments might need been cheaper than different assessments, however that didn’t imply “you need to give individuals false details about their well being standing.”

Credit score…Jeff Kravitz/FilmMagic, through Getty Photographs

Ms. Cheung was a high-profile witness for the federal authorities, which is attempting to make the case that Ms. Holmes deliberately misled traders, docs and sufferers about how nicely Theranos’s blood testing know-how labored. The corporate, as soon as held up as a Silicon Valley success story with Ms. Holmes its shining star, collapsed in 2018. Ms. Holmes, 37, faces 12 counts of wire fraud and conspiracy to commit wire fraud, and has pleaded not responsible.

Ms. Cheung, who labored as a lab assistant at Theranos for a number of months in 2013 and 2014 earlier than reporting lab testing issues to federal brokers in 2015, testified this week that she had considerations about how the corporate deleted outliers in its information to make sure that its units handed quality-control assessments. She mentioned her considerations had begun a couple of month into her employment.

Throughout cross-examination, Lance Wade, a lawyer for Ms. Holmes, quizzed Ms. Cheung on the processes, procedures and organizational chart of Theranos’s labs. The obvious level was to point out that the problems Ms. Cheung raised about inaccurate lab outcomes utilized to just one small space of the corporate.

Whereas Ms. Cheung dutifully answered, recalling Theranos’s procedures and organizational construction, she countered that its blood testing machines had continuously wanted recalibration and failed their high quality checks. Recalibrating the machines might take days, she mentioned.

“We had individuals sleeping within the automobile as a result of it was taking too lengthy,” she mentioned.

On Friday, Mr. Wade additionally requested Ms. Cheung a couple of 2015 letter she acquired from Theranos’s lawyer on the time, David Boies. Within the letter, which Ms. Cheung talked about earlier in her testimony, Mr. Boies threatened litigation in opposition to her for discussing Theranos with John Carreyrou, a Wall Road Journal reporter who uncovered the corporate’s testing issues that yr.

Mr. Wade famous that Ms. Cheung had acquired two calls from Theranos’s human assets director earlier than receiving the letter from Mr. Boies however had not returned them.

Ms. Cheung later mentioned she had not returned the calls as a result of she not labored at Theranos and since the “concern” within the human assets director’s voice reminded her of how scared she had been on the firm.

“I had the correct to not converse to them,” Ms. Cheung mentioned.

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