Elizabeth Holmes, the founder of privately held health technology company Theranos was arraigned last Friday in court to face charges of defrauding investors and patients leveled against her.
According to the lawsuit, Holmes is being accused of making false claims about Theranos including that its technology could run a number of diagnostic tests more quickly and efficiently compared to conventional laboratory tests with a drop of blood from a finger prick.
On her defense, Holmes says that her work at the company made her to believe in Theranos technology, she added that in her first days to raise capital she met with, Don Lucas, a Silicon Valley Venture capitalist who put his investment behind Theranos and later became the chairman of its board.
“I knew him as someone who focused on building great companies for the long term. Lucas began a very comprehensive diligence process including asking for Theranos’ financial information,” said Holmes.
The rain started beating Holmes and her company in 2015 when some articles published on Wall Street Journal indicated that some devices from the company are faulty and inaccurate. So far, Holmes has pleaded not guilty to nine counts of wire fraud and two counts of conspiracy.
This case will be resuming this week and Holmes is will resume testifying on November 22.