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Erin Griffith

She never got reports about lab activities. She only saw documents about F.D.A.-approved tests on regular blood analyzers. She had no understanding that Theranos was using its own devices on assays. Whew.

 

Erin Griffith

She never met Elizabeth Holmes. She never met her lab co-director (the longtime dermatologist of Sunny Balwani). Her job was to sign Docusign documents that she had no ability to edit.

 

Erin Griffith

So, Dr. Sawyer became co-director of the lab after Rosendorff left. She was told nothing about his departure. She never went to Theranos’s lab. Never knew anything about it developing its own tests. Never heard of Edison, Minilab, or any of Theranos’s labs.

 

Erin Griffith

New witness for the last 30 minutes of the day. The U.S. has called Lynette Sawyer. She was a co-director of Theranos’s California clinical lab between 2014 and 2015. She was originally meant to be a fill-in for 2-3 months.

 

Erin Griffith

During that time, was Ms. Holmes still your primary source of information about Theranos? Lucas says yes. Lucas also testifies he didn’t have any information about Theranos’s financial situation before investing in 2013.

 

Erin Griffith

Defense made some points earlier about Holmes’s age. Lucas incorrectly estimated her age as 19 when he first invested (she was 21). In re-cross, Bostic points out that she was 29 with a decade at the helm of Theranos by the time Lucas’s second investment was made.

 

Erin Griffith

Defense points out that Lucas got a 2.5 percent fee and 16 percent of the upside for investments he made on behalf of Hall Group into Theranos. Black Diamond Ventures got similar terms on the investments made into Theranos on behalf of 30 individuals.

 

Erin Griffith

Downey tried to make the point that Lucas’s rush to get into the late 2013 deal may have been to get in at a lower price since Theranos was also planning another round of funding at a higher price the next year.

 

Erin Griffith

For the last 30 minutes or so we have done a deep dive into the minutia of Black Diamond’s 2006 investment. Which funds, the closes, the co-investors, the price, the dollar amounts.

 

Erin Griffith

Once again we are shown a million-dollar investment amount with a 25 cents on the end. Downey asks Lucas to explain that and he offers up a, “Really? You want me to answer that?” (The reason is to make it an even number of shares.)

 

Erin Griffith

We’re going on a break and counsel plans to talk about “that morning matter” which was a cryptic thing about “transactions” before we return. No idea what it could be.

 

Erin Griffith

Downey spends a lot of time on Theranos’s patents and I’m not sure what the upshot is besides showing that having a patent is a positive for investors. Lucas says developing the technology is more important.

 

Erin Griffith

Downey shows Lucas a list of standard due diligence documents — corporate records, and IP lists, and material agreements, etc. Did Lucas look at these for Theranos? “No we did not conduct all of this.”

 

Erin Griffith

Downey asks if its customary for VC firms to retain a law firm for diligence in deals and whether Don…