Theranos re-appearing in court as former CEO Elizabeth Holmes takes a stand

Apple confirmed it has been paying BuzzFeed $1.7 million a year to hire reviewers of its products. Meanwhile, a report from the Associated Press found Apple had been paying more than $99,000 a year to nearly 1,000 reviewers to read its products and write about them.

Ambitious billionaire Elizabeth Holmes is returning to the stand on Tuesday, as her tech wunderkind Theranos gets more intimately involved in the investigation into its near collapse.

Prosecutors are expected to question Holmes, the former CEO, for the second time. Court-appointed FBI agent W. Mark Fawell conducted his first formal interview with her in January.

According to the Washington Post, Holmes has provided “an updated written statement” that her attorney, Daniel Petrocelli, said “unequivocally and conclusively” denies all the charges against his client. His previous hearing focused more on scheduling matters.

In August, Holmes’ company Theranos faced another criminal charge. The Justice Department accused the company of using “a systematic scheme to defraud consumers” by falsifying its claims about its blood testing technology. Holmes previously pleaded not guilty to six of the 17 fraud counts in a federal grand jury indictment, and is free on $500,000 bail.

Prosecutors allege Holmes used secret data to claim Theranos’ blood testing technology was accurate and accurate compared to its rivals. Theranos says that they began using proprietary tests to calculate results a decade ago — before the government approved their technology.

Theranos was under regulatory scrutiny since 2012, when a December 2012 article by the Wall Street Journal raised questions about the company’s testing results.

Since then, the firm has been widely criticized for its blood tests and semi-permanent retreat from the market, which Theranos says has been a profitable move for the firm, but analysts say has been disastrous for the Silicon Valley upstart.

Theranos has made a few headlines lately for admitting to some past crimes, but none have been connected to the case against the company. The focus, according to the Washington Post, has been on Holmes’ trial, which will hinge on her plan to replace the Theranos sales team with sales managers who were trained by former Apple executives, and the follow-up success of her second drug development project, called Breezhaler.

Though the judge in the case threw out one count because jurors failed to disclose their prior experience with Theranos, the verdict on the remaining charges is expected to come by early September.

Follow Elizabeth on Twitter @diarancalvin

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