Theranos founder Elizabeth Holmes arrives in court to begin the trial

SAN JOSE, Calif., Sept. 8 (Reuters) – Theranos founder Elizabeth Holmes reached a federal court in California on Wednesday before opening statements in her trial for fraud charges against the former Silicon star Valley accused of lying about her missing blood. initial tests once valued at $ 9 billion.

In one of the most followed trials by a U.S. corporate executive in recent years, Holmes is accused of making false claims about the company, including that his devices designed to draw a drop of blood from a damn fingers could perform a series of tests more quickly and accurately than conventional laboratory means.

Holmes, 37, arrived at the San Jose courtroom in a white blouse and a grayish blue skirt dress. The hallway, full of observers chatting and waiting to enter, was silenced as it passed.

Journalists and others waiting to attend the trial lined up outside the court hours before the proceedings began, some arriving as early as two in the morning. A 12-member jury will hear the initial arguments in the trial presided over by the U.S. district judge. Edward Davila, starting with the prosecution.

Holmes, who can take the witness stand during the trial, has pleaded not guilty to 10 counts of cable fraud and two counts of conspiracy. Theranos executive Ramesh “Sunny” Balwani, scheduled to be tried separately, has also pleaded not guilty.

Prosecutors said Holmes and Balwani defrauded investors between 2010 and 2015 and deceived patients when the company began making its evidence available commercially, even through a partnership with the pharmacy chain Walgreens ( WBA.O).

Unclosed court records last month showed that Holmes, who had had a romantic relationship with Balwani, alleged that he abused her emotionally and psychologically. Balwani has denied the allegations.

Holmes’ lawyers have said in court papers that he is “very likely” to take the witness stand and testify about how the relationship affected his mental state. Defendants rarely testify at their own trials because it opens them up to a potentially risky interrogation by prosecutors.

Legal experts expect their defense attorneys to ask questions about what Holmes knew and believed during the alleged plan. To convict Holmes of fraud, prosecutors must prove their intent.

Defense and prosecutors have identified more than 140 potential witnesses to the case, including investors and former Theranos employees.

The defense has tried to avoid certain testimonies from three former employees. In response to this motion, prosecutors published six pages of text between Holmes and Balwani on Tuesday afternoon, saying they supported a potential testimony from one of the former employees that the two executives retaliated against after she was fired. worried about the company.

Holmes, who dropped out of Stanford University and started Theranos in 2003 at age 19, once took headlines with his vision of a small machine that could do blood tests in stores and homes.

The Wall Street Journal in 2015 reported that Theranos devices were defective and inaccurate, leading to a downward spiral for a company that had attracted investors such as media mogul Rupert Murdoch and co-founder of Oracle (ORCL.N). , Larry Ellison.

The saga has become the subject of documentaries, podcasts and books. There is a TV miniseries and a Hollywood movie based on the story of Holmes.

Report by Jody Godoy; Edited by Will Dunham

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