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Federal Criminal Trialtrial-daytrial-dayJohn C. BosticJeff SchenkLance A. WadeSunil DhawanDaniel EdlincrossredirectrecrossdirectDay 20 - October 15, 2021Sunil Dhawan described his reliance on Theranos personnel and records while distinguishing assumptions from firsthand knowledge. Daniel Edlin then testified about restricted information, staged devices, and demonstration procedures that he understood could conceal protocol failures from visitors.
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Day 20 - October 15, 2021

Dhawan’s Limited Oversight and Edlin’s Account of Theranos Demonstrations

Judge Edward J. Davila
5Proceedings
3Pages
2Witnesses
1,248Lines
Day 20 of 51
Appearing:

Sunil Dhawan described his reliance on Theranos personnel and records while distinguishing assumptions from firsthand knowledge. Daniel Edlin then testified about restricted information, staged devices, and demonstration procedures that he understood could conceal protocol failures from visitors.

Full day summary

Before testimony resumed, the parties disputed the admissibility of military-related exhibits and an email reporting comments from military representatives. The court deferred a decision on Exhibits 504 and 551 for further review and said Exhibit 1496 required additional foundation and context. On cross-examination, Sunil Dhawan agreed that regulations permitted part-time laboratory directors and that daily duties could be delegated to full-time personnel. He said he relied on staff and laboratory records, and he emphasized that he had not known at the time that the listed Edison assays had stopped before his more active involvement. On redirect, Dhawan clarified that he assumed underlying data were accurate without independently substantiating them, had little contact with Theranos employees, and received no data directing him to stop a test. When the defense objected that the questioning could imply unsupported data falsification, the prosecution said it would not rely on Dhawan to establish false data, and the court took no corrective action. Daniel Edlin then described his work at Theranos from 2011 through 2016 and said information was restricted on a need-to-know basis. He testified about controlled tours, devices concealed behind partitions, and Holmes's direction to arrange approximately 10 to 15 powered Minilab devices for a visitor. Using admitted Exhibit 959, Edlin described demonstration plans involving null protocols, possible separate laboratory processing, and an application that he understood would not show viewers when a protocol failure occurred. He also testified that he left after concluding, based on what he had observed, that Theranos could not stand behind its technology claims.

1. Exhibits 504, 551, and 1496 Admissibility Hearing

Before testimony resumed, the parties disputed the admissibility of Theranos military-related exhibits, and the court deferred ruling pending review and further foundation.

Procedural
Exhibits 504 and 551 Admissibility Hearing

The defense sought to exclude two military-related exhibits, the prosecution argued they supplied context for alleged investor misrepresentations, and the court deferred its decision pending review.

Procedural
Exhibit 1496 Admissibility Hearing

The defense challenged Exhibit 1496, an email reporting comments from a military meeting, while the prosecution argued it bore on Holmes's knowledge and state of mind; the court left admissibility unresolved pending context and foundation.

2. Sunil Dhawan — Cross/Redirect/Recross (Continued)

Sunil Dhawan's testimony concluded with cross-examination about his limited oversight and reliance on Theranos staff, followed by redirect and recross clarifying his assumptions about employees and laboratory records. The court then heard and declined to act immediately on a defense concern that the questioning could imply data falsification.

Cross
Sunil DhawanLance A. Wade
664 lines

Dhawan agreed that his part-time laboratory-director role allowed delegation and reliance on full-time staff, while emphasizing that he lacked contemporaneous knowledge of Sawyer's work, the end of Edison testing, and several details of inspection preparation.

Redirect
Sunil DhawanJeff Schenk
120 lines

Dhawan clarified that many of his earlier answers rested on assumptions rather than verified facts, including employee status, document accuracy, testing practices, and compliance with written laboratory procedures.

Recross
Sunil DhawanLance A. Wade
11 lines

Dhawan agreed that he relied on personnel to act in good faith and follow policies, and said he had received no information suggesting otherwise.

Redirect
Sunil DhawanJeff Schenk
15 lines

Dhawan clarified that he was not at Theranos when he assumed employees were performing their assigned work.

Procedural
Hearing on Data-Integrity Questioning

The defense challenged questioning it believed implied unsupported data falsification; the prosecution disclaimed that inference from Dhawan's testimony, and the court found his examination balanced without taking immediate action.

Highlights

3. Daniel Edlin — Direct

After scheduling issues involving juror bereavement were addressed, Daniel Edlin began direct testimony about his Theranos roles, controlled demonstrations, and an August 2013 demo plan.

Procedural
Seated Juror Bereavement and Scheduling Inquiry

The court reported a seated juror's family bereavement and possible travel, advised counsel of other potential scheduling interruptions, and said it would provide updates and adjust as needed.

Direct
Daniel EdlinJohn C. Bostic
329 lines

Daniel Edlin described Theranos's information controls, Walgreens work, staged visitor tours, and technology demonstrations, then used an admitted August 2013 email chain to explain null protocols, separate laboratory processing, and a demo application that concealed protocol failures.

Highlights

Daniel Edlin — Directtestimony highlightEdlin described his roles from 2011 through 2016, his increasing work with Holmes, and his decision to leave after concluding that Theranos could not stand behind its technology claims.Daniel Edlin — Direct“SECOND, YOU KNOW, AT THAT TIME I NO LONGER BELIEVED, BASED ON WHAT I WAS SEEING, THAT THE COMPANY WAS CAPABLE OF STANDING BEHIND THE CLAIMS IT HAD BEEN MAKING ABOUT THE TECHNOLOGY.”— Daniel EdlinEdlin gave his central reason for leaving Theranos and tied it to what he had observed by late 2016.Daniel Edlin — Directtestimony highlightEdlin described tours in which Theranos devices were concealed behind partitions and a 2013 occasion when Holmes directed him to arrange about 10 to 15 powered Minilab devices for a VIP visit.Daniel Edlin — Direct“ELIZABETH ASKED THAT I SET UP ABOUT 10 TO 15 OF THE MINILAB DEVICES IN THAT ROOM KIND OF NEXT TO EACH OTHER AGAINST THE WALL.”— Daniel EdlinEdlin directly attributed the temporary staging of numerous Minilab devices for a visitor meeting to Holmes.Daniel Edlin — Directevidence eventThe court admitted Exhibit 959 without objection, and Edlin used the email chain to explain alternative demonstration plans, null protocols, separate laboratory processing, and an application that concealed protocol failures from the viewer.Daniel Edlin — Direct“MY UNDERSTANDING IS THAT THE DEMO APP WOULD BE USED IN TECHNOLOGY DEMONSTRATIONS AND IF, DURING THE PROCESSING, AN ERROR OCCURRED, THIS APP WOULD NOT SAY ON THE SCREEN, IT WOULD NOT EXPRESS THAT AN ERROR HAD TAKEN PLACE.”— Daniel EdlinEdlin explained his understanding that the demonstration interface concealed processing errors from its audience.
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