Stocks tumble in worst day since May, as tech shares slide and bond yields climb.

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2 hours in the past

Erin Woo

We’re going via what checks had been provided in the course of the family and friends launch. The one checks run via 9/28/13 had been two that didn’t run on the Edison, Rosendorff confirms. The primary Edison-based check, TSH, a measure of thyroid perform, was run 10/17/2013.

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Wade additionally retains having Rosendorff learn his personal testimony, silently, to himself. That’s taking place once more now.

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Within the e-mail, Balwani writes, “We feel confident we can handle ~30 samples/day from this location at this point. And it has been 2 months since we have been out in WAG [Walgreens]. It’s time to go live.” Wade now attempting to make the purpose that they’d not beforehand been dwell.

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Discovered it! We are actually an 11/7/13 e-mail from Balwani to Rosendorff about opening their Palo Alto/Uni Ave location to the general public on the approaching Monday. It had beforehand solely been open to associates/household.

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We are actually, as soon as once more, looking for the proper pages within the MANY binders the protection gave Rosendorff.

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Wade is now saying that Rosendorff testified earlier to a grand testimony that it was a “limited friends and family” however didn’t accomplish that on Friday.

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We are actually on to the business launch. In an e-mail that we noticed in direct, Rose Edmonds (a growth scientist) says that not one of the assays are utterly via validation testing. Rosendorff had testified that is important as a result of they had been only a week from launch.

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Wade gave a hypothetical the place Rosendorff had rotten meals in his workplace, and subordinates complain to Balwani. Rosendorff continued to appear confused, and Wade is now shifting on.

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We are actually … asking about firm hierarchy? (Rosendorff reported on to Balwani, and Younger was additionally above him.) “Are there ever circumstances where it’s appropriate for senior management to have discussions about a subordinate?” Wade asks. Rosendorff appears confused.

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2 hours in the past

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Rosendorff additionally served as Theranos’s medical marketing consultant. Holmes wouldn’t qualify for this both.

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Wade is asking about Holmes’s schooling. Famously, she dropped out of Stanford. “Based on your understanding of her background, would she be qualified to be a CLIA supervisor or lab director? Rosendorff: “No, definitely not.”

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Wade says, and Rosendorff concedes, that finally it was Rosendorff’s duty if the checks failed and his duty to implement high quality management insurance policies and proficiency checks.

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3 hours in the past

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Rosendorff is agreeing with Wade’s questioning that Holmes by no means instructed him to report an inaccurate outcome, and that Holmes by no means directed him to not pause or discontinue checks he thought had been inaccurate.

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Wade: “Did you ever use a test on patients that you believed was inaccurate or unreliable?” Rosendorff: “No.” Did he ever present outcomes that he believed to be unreliable? “No.”

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Wade: “Did you faithfully dispatch your legal obligations as lab director at Theranos?” Rosendorff: “Yes, I did.” Wade: “Did you offer lab tests that you knew at the time were inaccurate or unreliable?” Rosendorff: “No … I ordered the laboratory to cease testing.”

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Two themes of cross up to now: Wade appears to be attempting to show that Rosendorff labored with the federal government in shaping his testimony, and is hammering house that Rosendorff was legally and ethically liable for the lab.

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Rosendorff confirms that he was accustomed to the laws. Wade is now asking a sequence of questions on Rosendorff’s obligations: “You are required to…?” Rosendorff says these are his obligations, however “I received pushback from management.”

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Wade is now holding up a stack of papers (perhaps an inch thick?) and asking if Rosendorff knew all of these laws, presumably the stack of papers he’s holding. Davila, the decide: “You’re asking to admit the entirety of this document? It’s how many pages? 122?” It’s admitted.

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We’re into Rosendorff’s time at Theranos! Wade requested him if being the CLIA lab director meant he was legally liable for what occurred within the lab, and Rosendorff stated sure.

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Wade is constant to attempt to decide aside the prosecution’s case, noting that they didn’t go in chronological order via the paperwork. He nonetheless hasn’t actually requested about Rosendorff’s precise experiences at Theranos.

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Wade is arguing that Rosendorff’s testimony in direct doesn’t match what he testified in 2019. Earlier, he simply stated he wasn’t glad with administration’s response to proficiency testing. His testimony on Friday was extra detailed.

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We’re now into questioning concerning the testimony itself. Wade is asking Rosendorff about his causes for leaving Theranos. Wade asks if Rosendorff mentioned that query/reply with the federal government. Rosendorff says sure.

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Wade presses him on whether or not he instructed the federal government what he was going to testify.

Rosendorff says no.

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Wade is now asking about how Rosendorff was ready to testify by the federal government. Rosendorff: “I was always instructed by the government to be truthful.” Wade asked: “Did they let you know to present that reply?” Rosendorff: “No.”

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Wade is going through a list of people and asking Rosendorff if he’s met each of them. His tone is far more aggressive than with previous witnesses.

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3 hours in the past

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We’re starting with cross-examination. Lance Wade, Holmes’s lawyer, is starting by grilling Rosendorff on how many times he’s met with the government.

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4 hours in the past

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And, with that, his direct testimony has wrapped. We’ll pick up with cross-examination after a 30-min. break.

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Ultimately, Rosendorff said, he left after “endless meetings and conversations, very careful study of medical literature, late nights … great efforts on my part to improve the quality of testing at Theranos.”

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4 hours in the past

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Rosendorff testified about why he spoke with then-WSJ reporter John Carreyrou: said he felt a “moral and ethical” obligation to alert the public.

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Bostic pointed out the line “We will execute this year.” When did Theranos start testing? he asked. Rosendorff responds: 2013.

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4 hours in the past

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More texts from Holmes/Balwani! Holmes: “This year is our year. We can never forget this tiger.” Balwani: “I know, I am focused on it. We will execute this year.” Holmes: “I know. I’m focused on it too. And for our kids never forget who we are.”

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On Rosendorff’s last day, he says Balwani offered a handshake, and he declined. Balwani gave him exit paperwork to sign. Balwani said he would be prepared to keep him on, but Rosendorff said it wasn’t worth the risk to his reputation.

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Holmes forwarded it to Balwani: “We need to respond to him now and cut him Monday.” Rosendorff had already accepted a job offer at another lab and was planning on leaving — interpreted this as them trying to fire him right before he left.

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4 hours in the past

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Nov. 2014 email to Rosendorff asking for a redraw. Rosendorff forwarded this to Holmes/Balwani, and Balwani said the rep “jumped the gun” asking for a redraw. Adam forwarded this to Elizabeth: “I find Sunny’s response offensive and disingenuous. He should apologize.”

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Gov’t attempting to make the purpose that Holmes/Balwani are actively courting investments whilst Rosendorff raises considerations about essential issues within the lab.

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We’re now Nov. 2014 texts between Balwani and Holmes, speaking about investments from Alice Walton and Rupert Murdoch. Balwani: “They are not investing in our company, they are investing in our destiny.”

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Holmes’s response (pt. 1): “How sad and disappointing to see this from you. Outside of the fact you’ve never emailed me on any concerns you allude to there before but now email this, you know from every conversation we’ve ever had together …”

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Now Nov. 14 emails from Rosendorff. “I feel really uncomfortable with what is happening right now in this company. Is there any way you can get Spencer back on the CLIA [Clinical Laboratory Improvement Amendments] license and take me off? I am feeling pressured to vouch for results that I cannot be confident in.”

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Christian forwarded the e-mail to Elizabeth, writing: “His response to this was to do a vacutainer redraw & I ended the conversation at that point.” A vacutainer draw is a non-Theranos retest.

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He continued: “Further 100% honesty and transparency to the patient is essential. “My first duty is not to Theranos, but to the patient as per my Hippocratic oath “primum non nocere.” “I never said I wouldn’t talk to the MD.”

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