Theranos Trial: Brian Grossman Says Elizabeth Holmes Lied About Finger-Prick Tech And Military Use
Brian Grossman, a hedge fund manager who invested $96 million into Theranos, said he thoroughly investigated the medical company but was still misled by its founder and CEO Elizabeth Holmes about its blood-testing technology.
In Holmes’ criminal trial on Tuesday, Grossman told jurors that in 2014, as part of his due diligence, he had his own blood drawn from a Theranos blood-testing machine at a Walgreen pharmacy. He recalled how his blood had been drawn with a venous draw rather than a finger stick, saying that that the experience undermined what he had been told about the company and its blood-testing technology.
Grossman went on to tell jurors how he met with Holmes and her top executive Ramesh Balwani in December 2013. He said that Holmes did most of the talking and that he was told that Theranos could run 1,000 blood tests on its proprietary technology. However, earlier witnesses have testified that Theranos’ machines could not run more than 12 different tests.
Grossman said that, during the December 2013 meeting, he was told that the company was working with the military and that its technology was being used on medivacs in the battlefield. However, last month former Theranos employee, Daniel Edlin, told jurors that, as far as he knew, the company’s blood-testing devices were never used in the Middle East.
Elizabeth Holmes has pleaded not guilty to 12 counts of wire fraud and conspiracy to commit wire fraud. Grossman’s testimony underpins one of the wire fraud counts.