Lisa Peterson — Direct/Cross (Continued)
1,923 linesMR. LEACH: MS. PETERSON, I WANT TO MOVE FORWARD IN TIME TO APRIL OF 2016. DO YOU HAVE THAT TIME PERIOD IN MIND?
LISA PETERSON: YES.
MR. LEACH: AT OR AROUND THAT TIME, DID YOU REVIEW A SEGMENT ON THE "TODAY SHOW" FEATURING MS. HOLMES?
LISA PETERSON: YES.
MR. LEACH: AND DID YOU OBSERVE MS. HOLMES MAKING STATEMENTS ABOUT HER LEVEL OF INVOLVEMENT IN HER COMPANY?
LISA PETERSON: YES.
MR. LEACH: AND THIS WAS IN APPROXIMATELY APRIL OF 2016?
LISA PETERSON: CORRECT.
MR. LEACH: IT WAS THE "TODAY SHOW"?
LISA PETERSON: I DON'T REMEMBER WHICH ONE. ONE OF THOSE MORNING SHOWS.
MR. LEACH: PRIOR TO TESTIFYING TODAY, DID YOU HAVE AN OPPORTUNITY TO REVIEW SEGMENTS OF A NEWS STORY IN APRIL OF 2016?
LISA PETERSON: YES.
MR. LEACH: OKAY. YOUR HONOR, I WOULD LIKE TO OFFER THE INTERVIEW SEGMENT FROM THE "TODAY SHOW." IT'S EXHIBIT 3152, AND I'LL OFFER THE EXHIBIT IN ITS ENTIRETY.
JUDGE DAVILA: ALL RIGHT. THANK YOU. DID YOU -- BEFORE WE DO THAT, I'M NOT SURE THAT THIS WITNESS TESTIFIED THAT WHAT WE JUST SAW, THE THREE CLIPS, WERE THE ONES THAT SHE SAW.
MR. LEACH: I CAN ASK THAT, YOUR HONOR. I'M CONSCIOUSLY NOT GETTING INTO REACTION OR STATE OF MIND ON THAT, BUT --
JUDGE DAVILA: CORRECT. FOUNDATIONALLY -- I THINK YOU ASKED HER IF SHE SAW THEM, BUT I'M NOT CERTAIN THAT SHE TESTIFIED THAT WHAT WE SAW WAS WHAT SHE WAS REFERENCING.
MR. LEACH: I'LL ASK THE FOLLOWUP.
MR. LEACH: WE LOOKED AT THREE SEGMENTS FROM "MAD MONEY," MS. PETERSON, CLIPS 2851-1, -2, AND -3. ARE THOSE PORTIONS OF THE "MAD MONEY" CLIPS THAT YOU VIEWED?
LISA PETERSON: YES.
JUDGE DAVILA: ALL RIGHT. THANK YOU. MR. WADE?
JUDGE DAVILA: SAME OBJECTIONS? ALL RIGHT. THANK YOU. WE'LL NOTE THAT, AND THE OBJECTIONS ARE OVERRULED, AND YOU CAN PLAY THE CLIP.
MR. LEACH: ALL RIGHT. THANK YOU. AND I'M GOING TO PLAY THE ENTIRETY OF THE CLIP.
MR. LEACH: THANK YOU.
(GOVERNMENT'S EXHIBIT 3152 WAS RECEIVED IN EVIDENCE.)
JUDGE DAVILA: EXCUSE ME. COULD WE STOP THIS FOR JUST A SECOND? MS. HOLLIMAN, CAN WE STOP THERE FOR JUST A SECOND? I'M SORRY. AND I NEED TO TALK TO COUNSEL FOR A MOMENT. WHY DON'T WE DO THAT? LET'S GO IN CHAMBERS RATHER THAN CLEAR EVERYONE.
COURT CLERK: LET ME TAKE THIS DOWN, YOUR HONOR.
JUDGE DAVILA: YES, GO AHEAD AND TAKE THAT DOWN. I JUST NEED CLARIFICATION ON SOMETHING. I'M SORRY. SO LET'S SEE -- I THINK THIS WILL JUST TAKE A SECOND. SO WE CAN DO THAT IN THE LITTLE ROOM BACK HERE, MR. WADE.
JUDGE DAVILA: FOLKS, THIS WILL TAKE JUST A COUPLE OF MINUTES, BUT YOU CAN STAND AND STRETCH. DON'T LEAVE THE ROOM, PLEASE.
(CONFERENCE ON THE RECORD IN THE JURY ROOM WITH COUNSEL.)
JUDGE DAVILA: WE'RE ON THE RECORD. WE'RE IN -- OUTSIDE OF THE PRESENCE OF THE JURY. MR. LEACH IS HERE AND MR. WADE IS HERE. I STOPPED THIS, AND WE CAN REWIND IT ACCORDINGLY. BUT THIS WAS GOING TO BE A VIDEO OF HER MAKING HER -- MS. HOLMES, PARDON ME, MAKING STATEMENTS. MY CONCERN IS THAT THERE'S COMMENTARY FROM THE REPORTERS TALKING ABOUT REPORTING AND GETTING THAT INFORMATION IN, WHICH I THINK IS ADDITIONAL TO THOSE STATEMENTS. THAT'S MY CONCERN, AND I HAVE SOME CONCERN ABOUT THE INTRODUCTION, MS. SHRIVER, THE REPORTER TALKING AND OFFERING THAT COMMENTARY. I DON'T THINK YOU MENTIONED THIS, MR. WADE, IN YOUR COMMENTS EARLIER, BUT I GUESS I'M CONCERNED ABOUT WHAT I SHOULD TELL THE JURY ABOUT THAT OR WHETHER OR NOT -- I THOUGHT HONESTLY THIS WAS GOING TO BE A -- THE SAME THING AS THE "MAD MONEY," QUESTION, ANSWER, QUESTION, ANSWER.
MR. LEACH: FIRST, YOUR HONOR, LET ME APOLOGIZE.
JUDGE DAVILA: I SHOULD HAVE READ THE TRANSCRIPT A LITTLE CLOSER.
MR. LEACH: THE GOVERNMENT ONLY PROPOSED THE PORTIONS WHERE MS. HOLMES IS SPEAKING, AND AS I UNDERSTAND THE DEFENSE'S OBJECTION, IF THAT WAS GOING TO COME IN, THEY WANTED THE ENTIRETY OF THE INTERVIEW.
MR. LEACH: SO AFTER OUR COLLOQUY, LISTENING TO THE DEFENSE OBJECTION THAT THEY WANTED THE ENTIRE VIDEO IN, TO AVOID THE OBJECTION, I OFFERED THE ENTIRE VIDEO.
JUDGE DAVILA: I SEE.
MR. LEACH: I DON'T KNOW WHAT THEIR POSITION ON THE COMMENTARY IS, BUT WE WANTED MS. HOLMES'S STATEMENTS IN. WE STILL WANT MS. HOLMES'S STATEMENTS IN.
JUDGE DAVILA: RIGHT.
MR. LEACH: AND IF THE OBJECTION IS A RULE 106 OBJECTION FOR COMPLETENESS AND PLAY THE WHOLE THING, WE'RE FINE WITH THAT, TOO. IT'S INITIALLY NOT WHAT WE WANTED TO OFFER, BUT IN RESPONSE TO THE DEFENSE'S OBJECTION, I UNDERSTOOD THE WHOLE THING COULD COME IN.
MR. WADE: BUT I DON'T THINK WE'RE PLAYING ALL OF THE STATEMENTS, RIGHT? WE'RE ONLY PLAYING SELECTIVE STATEMENTS?
JUDGE DAVILA: OF THIS, OF THIS "TODAY" INTERVIEW?
JUDGE DAVILA: IT SOUNDS LIKE IT'S THE WHOLE TAPE.
MR. LEACH: OUR INITIAL PROPOSAL WAS SOME OF MS. HOLMES'S STATEMENTS IN THE INTERVIEW. THE DEFENSE OBJECTED THAT THEY WANTED THE ENTIRETY OF THE CLIP IN.
JUDGE DAVILA: OKAY.
MR. LEACH: IN RESPONSE TO THAT OBJECTION, I'M FINE WITH THE ENTIRE CLIP COMING IN --
JUDGE DAVILA: OKAY.
MR. LEACH: -- INCLUDING STATEMENTS BY MS. HOLMES THAT THE GOVERNMENT HAD NOT INITIALLY OFFERED.
JUDGE DAVILA: OKAY. ALL RIGHT. YOU'RE GOOD WITH THAT?
JUDGE DAVILA: OKAY. THANK YOU. I WAS -- I LOOKED AT IT, AND JUST FOR THE RECORD, THE REASON I STOPPED THE PROCEEDING -- AND WE'LL PLAY THIS AGAIN AND START IT BECAUSE I SAW THAT THERE WAS COMMENTARY AND I DIDN'T -- I KNOW THAT YOU DIDN'T OBJECT. I JUST WANTED TO BE CLEAR AND MAKE SURE THAT I HAVE THAT NOW, THAT'S ON THE RECORD NOW, THAT THE ENTIRETY OF THIS CAN BE PLAYED. YOU'VE HEARD MY REASON I STOPPED THIS WAS --
MR. WADE: NO, I APPRECIATE THE CAUTION, YOUR HONOR. BECAUSE IT WAS A LITTLE -- I THINK IT WAS A LAST MINUTE ADJUSTMENT BY MR. LEACH, WHICH WE UNDERSTAND AND --
JUDGE DAVILA: AND I'M NOT POINTING --
JUDGE DAVILA: THANK YOU FOR THAT. I'M SORRY FOR THE DISRUPTION. I'M NOT POINTING FINGERS. I JUST WANTED CLARITY.
JUDGE DAVILA: SO LET'S -- WE'RE STILL ON THE RECORD HERE. SHOULD WE START THE TAPE AGAIN? I CAN'T RECALL WHERE I STOPPED IT. I THINK IT WAS JUST AFTER MS. SHRIVER, THE REPORTER, WAS INTRODUCED. SHOULD WE START IT THERE?
MR. LEACH: I'M FINE STARTING IT WHERE WE STOPPED.
JUDGE DAVILA: WELL, I WAS TALKING AND IT WAS RUNNING.
JUDGE DAVILA: WHY DON'T WE START WHEN THE REPORTER, MS. SHRIVER, IS INTRODUCED, AND THEN IT BREAKS AWAY INTO THE INTERVIEW. IS THAT ALL RIGHT WITH YOU?
MR. LEACH: THAT'S FINE.
JUDGE DAVILA: THANK YOU. SORRY FOR THE DISRUPTION.
(END OF CONFERENCE ON THE RECORD IN THE JURY ROOM WITH COUNSEL.)
JUDGE DAVILA: ALL RIGHT. THANK YOU, COUNSEL. THANK YOU. AND I APOLOGIZE FOR THE INTERRUPTION. WE'RE BACK ON THE RECORD. ALL PARTIES PREVIOUSLY PRESENT ARE PRESENT ONCE AGAIN. OUR WITNESS IS STILL ON THE STAND. MR. LEACH, IF YOU COULD QUEUE UP THE RECORDING AGAIN. PERHAPS WE CAN START IT JUST AS THE REPORTER, MS. SHRIVER, WAS BEING INTRODUCED. WOULD THAT BE ALL RIGHT TO START THERE?
MR. LEACH: YES, YOUR HONOR.
JUDGE DAVILA: WOULD THAT BE ALL RIGHT TO START THERE?
JUDGE DAVILA: OKAY.
(VIDEO PLAYING OFF THE RECORD.)
MR. LEACH: THAT COMPLETES THE VIDEO CLIP, YOUR HONOR, EXHIBIT 3152.
MR. LEACH: MS. PETERSON, DID YOU VIEW THAT SEGMENT IN OR AROUND APRIL OF 2016?
LISA PETERSON: YES.
MR. LEACH: AND SHORTLY AFTER THAT VIDEO SEGMENT, DID YOU MEET WITH MS. HOLMES PERSONALLY IN PALO ALTO?
LISA PETERSON: YES, JERRY AND I DID.
MR. LEACH: AND WHO ELSE WAS AT THIS MEETING IN PALO ALTO?
LISA PETERSON: DAN MOSLEY -- IT WAS DAN MOSLEY, JERRY TUBERGEN AND MYSELF, AS WELL AS PEOPLE FROM THE OTHER SIDE, TOO.
MR. LEACH: AND DID MS. HOLMES DISCUSS THE CMS INSPECTION?
LISA PETERSON: THERE WAS A NUMBER OF THINGS DISCUSSED. WE ASKED ABOUT EVERYTHING -- THIS WAS THE FIRST TIME THAT WE HAD A CHANCE TO ACTUALLY TALK TO HER IN PERSON SINCE WE MADE THE INVESTMENT, AND A LOT HAD HAPPENED SINCE, SO WE WERE ASKING REALLY WHAT WAS GOING ON. AND THERE WAS A LOT OF CONVERSATION BY HER AROUND THE LAB AND THINGS THAT WERE GOING ON, AND IT WAS MORE ALONG THE LINES OF THE PROCESS WASN'T -- CMS WAS QUESTIONING THE PROCESS, NOT THE ACCURACY OF THE TESTS.
MR. LEACH: AND DID MS. HOLMES SAY, IN SUBSTANCE, THERANOS CAN'T TRIVIALIZE THE ISSUES IN THE PRESS?
LISA PETERSON: YES.
MR. LEACH: AND DID SHE SAY, IN SUBSTANCE, THAT IN REALITY THERANOS DOESN'T FEEL THE ISSUES ARE MAJOR?
LISA PETERSON: CORRECT. VERY MUCH DOWNPLAYED WHAT HAD BEEN HAPPENING IN THE PRESS, AND MUCH OF THE CORRESPONDENCE THAT WE HAD RECEIVED FROM THE COMPANY SINCE THE INVESTMENT WAS DOWNPLAYING WHAT HAD BEEN SAID IN THE NEWS.
MR. LEACH: MAY I HAVE A MOMENT, YOUR HONOR?
JUDGE DAVILA: YES.
(DISCUSSION AMONGST GOVERNMENT COUNSEL OFF THE RECORD.)
MR. LEACH: NO FURTHER QUESTIONS, YOUR HONOR. THANK YOU. THANK YOU, MS. PETERSON.
JUDGE DAVILA: ANY CROSS-EXAMINATION?
JUDGE DAVILA: SURE. FOLKS, FEEL FREE TO STAND AND STRETCH AS YOU WOULD LIKE DURING THE TRANSITION HERE. I THINK WE'RE GOING TO TAKE A BREAK AT 1:30, LADIES AND GENTLEMEN, RIGHT AROUND 1:30. YOU CAN STAND AS WELL, MS. PETERSON, IF YOU WOULD LIKE TO STRETCH.
(STRETCHING.)
JUDGE DAVILA: YES.
CROSS-EXAMINATION BY MR. WADE:
MR. WADE: MY NAME IS LANCE WADE. I REPRESENT MS. HOLMES. I'LL ASK YOU A FEW QUESTIONS HERE THIS AFTERNOON. DO YOU RECALL BEING ASKED SOME QUESTIONS ABOUT A PFIZER REPORT THAT YOU REVIEWED IN CONNECTION --
LISA PETERSON: DO I RECALL?
LISA PETERSON: YES.
LISA PETERSON: THERE WERE A LOT OF PAGES IN THE DUE DILIGENCE BINDER AROUND THAT, AND I JUST RECALL READING IT, AND THE TAKE AWAY FOR ME WAS THE ACCURACY OF THE TESTING THAT THEY HAD DONE.
LISA PETERSON: I DON'T RECALL.
LISA PETERSON: I DON'T RECALL THAT.
LISA PETERSON: I DON'T RECALL THE SPECIFICS.
LISA PETERSON: NOT TODAY, NO.
LISA PETERSON: NO. I RECALL READING THEM AT THE TIME AND UNDERSTANDING -- THE TAKE AWAY FOR ME IN LOOKING AT IT WAS THAT IT WAS LENDING CREDIBILITY TO THE ACCURACY OF THE ANALYZERS AND THAT IT HAD DONE WORK AND, AS ELIZABETH HAD SAID, THEY HAD DONE WORK FOR THE PHARMACEUTICAL COMPANIES FOR THE LAST FIVE TO SEVEN YEARS. SO, YES, I WAS LOOKING AT -- THAT THAT WAS TRUE, AND EVERYTHING I WAS READING, THE TAKE AWAY WAS ACCURACY OF THE TESTS THAT WAS DONE.
LISA PETERSON: NO, NOT THE SPECIFIC TESTS THAT WERE RUN, NO.
MR. WADE: OKAY. WE'LL COME BACK TO THE PFIZER REPORT IN A MINUTE. LET ME START WITH YOUR EMPLOYER. YOU WORK FOR RDV; IS THAT RIGHT? RDV CORPORATION?
LISA PETERSON: CORRECT.
LISA PETERSON: RICHARD DEVOS.
LISA PETERSON: HE'S A COFOUNDER, THE PATRIARCH OF THE FAMILY THAT I WORK FOR, YES.
MR. WADE: AND JUST FOR THE BENEFIT OF THE JURY, BECAUSE SOME OF US MAY NOT UNDERSTAND WHAT AN ENTITY LIKE THAT IS, THAT'S SOMETIMES REFERRED TO AS A FAMILY OFFICE; IS THAT RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: AND COULD YOU EXPLAIN TO US WHAT A FAMILY OFFICE IS, OR WHAT THIS FAMILY OFFICE IS? HOW'S THAT?
LISA PETERSON: THIS FAMILY OFFICE IS VERY MUCH A FAMILY -- THERE'S A FAMILY SERVICES PART OF THE OFFICE THAT DOES A LOT OF SERVICES DIRECTLY FOR THE FAMILY, LIKE MANAGING THEIR I.T. AND THEIR PHONES AND CUTTING THEIR CHECKS AND DOING ALL OF THE STUFF THAT YOU DO FOR A FAMILY, FOR A LARGE FAMILY LIKE THIS, HIRING THEIR STAFF. AND THEN THERE'S THE INVESTMENT SIDE, WHICH IS WHERE I WAS.
LISA PETERSON: ON THE INVESTMENT SIDE AT THE TIME?
LISA PETERSON: ABOUT 12 TO 15.
LISA PETERSON: DIRECTLY TO RANDY DAMSTRA.
LISA PETERSON: SENIOR MANAGING DIRECTOR OF PRIVATE EQUITY.
LISA PETERSON: DIRECTLY TO JERRY TUBERGEN.
LISA PETERSON: TO THE FAMILY.
LISA PETERSON: THE FAMILY MEMBERS, AND IT ROTATED, MADE UP THE INVESTMENT COMMITTEE. SO JERRY REPORTED TO THE FAMILY DIRECTLY AND TO THE INVESTMENT COMMITTEE, AND THEY HAVE A BOARD, RDV HAS A BOARD OF DIRECTORS WHICH IS MADE UP OF FAMILY MEMBERS, AND JERRY REPORTED TO THEM.
MR. WADE: OKAY. SO -- AND AS PART OF THE INVESTMENT PORTFOLIO, IT'S THE JOB OF RDV PEOPLE TO MANAGE THE ASSETS OF THE DEVOS FAMILY? IS THAT A FAIR HIGH LEVEL SUMMARY?
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
MR. WADE: AND HOW MANY -- YOU HAD TESTIFIED THAT I THINK YOU HAD BEEN THERE HOW MANY YEARS AGAIN? I'M SORRY.
LISA PETERSON: TODAY? GOING ON 17. I STARTED IN 2005.
MR. WADE: OKAY. SO FROM 2005 TO 2014, HOW MANY OTHER DIRECT INVESTMENTS IN PRIVATE COMPANIES DID YOU DO THAT WERE NOT AFFILIATED WITH PRIVATE EQUITY INVESTMENTS?
LISA PETERSON: NONE.
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: THE MEMBERS OF THE INVESTMENT COMMITTEE.
LISA PETERSON: CORRECT.
MR. WADE: AND HOW FREQUENTLY DID YOU COMMUNICATE DIRECTLY WITH THE MEMBERS OF THE DEVOS FAMILY ABOUT THE THERANOS INVESTMENT?
LISA PETERSON: WE HAD A LOT OF CONVERSATION, I DID DIRECTLY WITH THE INVESTMENT -- THE TWO INVESTMENT COMMITTEE MEMBERS THAT WERE ON THE AIRPLANE ON THE RIDE TO THE DILIGENCE MEETING THAT WE HAD. AND THEN EVERYTHING FROM THERE WENT THROUGH JERRY TUBERGEN.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: DIRECTLY WITH THE FAMILY MEMBERS?
LISA PETERSON: THERE MIGHT HAVE BEEN ONE OR TWO EMAIL EXCHANGES WITH RICK DEVOS AND THAT WAS ABOUT IT.
LISA PETERSON: YES.
LISA PETERSON: THE OLDEST OF THE GRANDCHILDREN OF THE PATRIARCH.
LISA PETERSON: YES.
LISA PETERSON: AT THE TIME, YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND JUST SO WE HAVE A SENSE OF WHERE THE OTHER FOLKS FALL, WHERE IN THE GENERATIONS DO THE OTHER INVESTMENT COMMITTEE MEMBERS FALL?
LISA PETERSON: DOUG DEVOS WAS THE CHAIRMAN OF THE INVESTMENT COMMITTEE AT THE TIME AND HE'S ONE OF THE SONS OF THE PATRIARCH; AND THEN THERE'S CHERI DEVOS WHO WENT ON THE TRIP, AND SHE WAS NOT ON THE INVESTMENT COMMITTEE, BUT SHE'S A FAMILY MEMBER AND THEY OFTEN -- FAMILY MEMBERS KIND OF CAME IN AND OUT OF THE INVESTMENT COMMITTEE. SO IT WASN'T UNUSUAL FOR HER TO GO. AND THEN THE OTHER TWO MEMBERS OF THE INVESTMENT COMMITTEE FROM THE GENERATION TWO WAS DOUG DEVOS -- OR I'M SORRY -- DAN DEVOS AND I BELIEVE DICK DEVOS.
LISA PETERSON: YES.
LISA PETERSON: GENERATION THREE.
LISA PETERSON: AND THEN THERE WERE TWO OTHER GENERATION THREE MEMBERS ON THE INVESTMENT COMMITTEE AT THE TIME.
MR. WADE: AND MR. TUBERGEN REPORTS DIRECTLY TO THE INVESTMENT COMMITTEE AND TO THE DEVOS FAMILY; IS THAT RIGHT?
LISA PETERSON: YES.
MR. WADE: OKAY. AND THE ENTITY THAT ACTUALLY INVESTED IN THIS COMPANY WAS CALLED DYNASTY FINANCIAL II LLC; CORRECT?
LISA PETERSON: YES.
LISA PETERSON: I DON'T KNOW THE BENEFICIAL OWNERS OF THE ENTITY, NO.
LISA PETERSON: NO. WE USUALLY CREATE A NEW ENTITY FOR ALL OF OUR INVESTMENTS. THIS PARTICULAR ONE I KNOW HAD MULTIPLE ASSETS IN IT, BUT I'M NOT PRIVY TO ALL OF THE OWNERS OF THAT ENTITY.
LISA PETERSON: 99 SOMETHING RATHER, YES.
MR. WADE: OKAY. AND THERE ARE DOCUMENTS WITHIN THE RDV THAT SUGGEST 80 MILLION OF THAT IS ATTRIBUTED TO RDV. ARE YOU FAMILIAR WITH THAT?
LISA PETERSON: THE ONLY OTHER INDIVIDUALS OUTSIDE OF THE FAMILY THAT WOULD HAVE BEEN INVESTING AT THAT POINT IN TIME WAS THE EXECUTIVE STAFF.
LISA PETERSON: JERRY.
LISA PETERSON: CORRECT.
LISA PETERSON: I DON'T.
LISA PETERSON: YES.
LISA PETERSON: WINDQUEST IS DICK AND BETSY'S FAMILY OFFICE. IT'S THE NAME OF THEIR FAMILY OFFICE. SO THERE ARE THE C-2 GENERATION, THE FOUR SIBLINGS EACH HAVE THEIR OWN OUTSIDE INTERESTS OUTSIDE OF RDV CORPORATION, IN WHICH THEY HAVE -- SOME OF THEM HAVE FAMILY OFFICES, NAMES OF THEIR FAMILY OFFICES, AND THAT WOULD BE ONE OF THEM.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: I DON'T KNOW.
LISA PETERSON: HE WAS. HE'S NO LONGER.
COURT CLERK: 2107?
LISA PETERSON: OKAY.
BY MR. WADE:
LISA PETERSON: I DO.
MR. WADE: DO YOU RECOGNIZE THAT TO BE AN EMAIL RELATING TO THE CLOSING OF THE THERANOS INVESTMENT THAT YOU'RE ON?
LISA PETERSON: I'M SORRY, SAY THE QUESTION AGAIN.
MR. WADE: DO YOU RECOGNIZE THAT THIS IS AN EMAIL THAT RELATES TO THE CLOSING OF THE THERANOS INVESTMENT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. LEACH: NO OBJECTION.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(DEFENDANT'S EXHIBIT 2170 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
MR. WADE: AND WE CAN JUST LOOK AT THE TOP. DO YOU SEE THAT THIS INDICATES THAT THE INVESTMENT, THE SIGNED INVESTMENT DOCUMENTATION WAS SENT BY MR. TUBERGEN TO MR. BALWANI ON 10-31-2014? DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: AND IF WE GO TO THE SECOND PAGE, THIS IS THE, THIS IS THE EXECUTED MASTER SIGNATURE PAGE?
LISA PETERSON: CORRECT.
MR. WADE: AND ON YOUR DIRECT TESTIMONY, MR. LEACH SHOWED YOU SOME ELECTRONIC FILES WITH ALL OF THE PAPERWORK FOR THE INVESTMENT. DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: IT'S THE SIGNATURE PAGE FOR THOSE DOCUMENTS, YES.
LISA PETERSON: ROBERT SCHIERBEEK.
LISA PETERSON: HE RUNS THE FAMILY SIDE OF THE OFFICE, AND HE WAS THE COO OF RDV CORPORATION WHICH OWNED DYNASTY FINANCIAL, AND HE'S THE SIGNOR FOR THE ENTITY.
LISA PETERSON: MR. SCHIERBEEK AND -- MR. DAMSTRA WOULD BE ON THE INVESTMENT SIDE, AND MR. SCHIERBEEK WAS RUNNING THE FAMILY SERVICES SIDE.
LISA PETERSON: THE FAMILY SIDE CONTROLS THE BANK, THE MONEY, AND THAT'S WHY HE'S THE SIGNER.
MR. WADE: OKAY. SO ONCE THERE'S, THERE'S APPROVAL OF THE INVESTMENT, THEN MR. -- IS IT SCHIERBEEK?
LISA PETERSON: SCHIERBEEK.
LISA PETERSON: CORRECT.
MR. WADE: OKAY. LET ME BACK UP TO THE START OF THE RELATIONSHIP WITH THERANOS. IS IT YOUR UNDERSTANDING THAT MR. DAN MOSLEY INTRODUCED RDV TO THE THERANOS INVESTMENT?
LISA PETERSON: THAT'S MY UNDERSTANDING, YES.
MR. WADE: AND MR. MOSLEY WAS A PARTNER AT THE LAW FIRM OF CRAVATH, SWAINE & MOORE IN NEW YORK CITY?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: I DON'T KNOW.
LISA PETERSON: I DON'T KNOW.
LISA PETERSON: NOT AT THE TIME, NO.
LISA PETERSON: YES.
LISA PETERSON: YES, I KNOW THAT.
MR. WADE: AND THE MEETING THAT WAS SCHEDULED -- THAT YOU TESTIFIED TO ON DIRECT WHERE MR. TUBERGEN AND MS. HOLMES MET INITIALLY, THAT WAS AT THE BDT CAPITAL CONFERENCE; CORRECT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND HE STARTED THIS FIRM FOCUSSING ON A NICHE RELATED TO PRIVATE FAMILY INVESTMENT; IS THAT RIGHT?
LISA PETERSON: YES.
MR. WADE: AND IS IT FAIR TO SAY, IF YOU KNOW, THAT MR. TROTT IS REPUTED TO BE ONE OF THE WISEST INVESTMENT BANKERS AROUND IN THIS SPACE?
LISA PETERSON: YES.
LISA PETERSON: WE DID IN THEIR FUND 2, AND WE DID NOT IN THEIR FUND 3.
MR. WADE: OKAY. AND MR. TUBERGEN WAS IN CHICAGO TO ATTEND THE CONFERENCE THAT BDT HOSTS EVERY YEAR; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: MR. TUBERGEN?
LISA PETERSON: NOT MY RECOLLECTION.
MR. WADE: DO YOU RECALL THAT MR. TUBERGEN SPOKE AT THE CONFERENCE AND GAVE A PRESENTATION ON HOW TO HAVE INVESTMENT SUCCESS?
LISA PETERSON: I WAS NOT TOLD THAT. I DON'T KNOW.
COURT CLERK: WHAT EXHIBIT NUMBER, COUNSEL?
COURT CLERK: THANK YOU.
LISA PETERSON: OKAY.
BY MR. WADE:
LISA PETERSON: NO. I WAS NOT THERE. I WAS AT A DIFFERENT MEETING. WE ONLY FLEW HOME TOGETHER.
LISA PETERSON: I'VE NEVER SEEN THIS BEFORE.
MR. WADE: OKAY. TAKE A LOOK AT THE FOURTH PAGE -- OR, I'M SORRY, THE LAST PAGE, THE EIGHTH PAGE IN THE DOCUMENT.
LISA PETERSON: THE EIGHTH PAGE?
LISA PETERSON: OKAY.
LISA PETERSON: YES.
MR. WADE: DOES THAT REFRESH YOUR RECOLLECTION THAT MR. TUBERGEN SPOKE ON A PANEL WHERE HE PROVIDED EXPERT ADVICE ON INVESTMENT SUCCESS?
LISA PETERSON: I DID NOT KNOW THAT.
LISA PETERSON: YES.
MR. WADE: WERE YOU AWARE THAT -- WERE YOU GIVEN A BRIEFING OF EVERYTHING THAT HAPPENED AT THE BDT CONFERENCE BY MR. TUBERGEN?
LISA PETERSON: AT THE CONFERENCE, NO.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES, I KNOW THAT.
LISA PETERSON: NO. AND AT THE TIME WE WEREN'T AWARE THAT THEY WERE AN INVESTOR.
MR. WADE: OKAY. WE'LL GET TO THAT. BUT COMING OUT OF THIS CONFERENCE, YOU DIDN'T GET A DEBRIEFING FROM MR. TUBERGEN ABOUT THE INTERACTIONS THAT HE HAD WITH RESPECT TO THOSE INDIVIDUALS?
MR. WADE: AND DID YOU GET A DEBRIEFING WITH RESPECT TO ALL OF THE INTERACTIONS AND DISCUSSIONS THAT HE MAY HAVE HAD WITH -- ABOUT THERANOS?
LISA PETERSON: WE TALKED ABOUT THERANOS. WE TALKED A LOT ABOUT THE, THE MEETING THAT JERRY HAD DIRECTLY WITH CHRISTIAN AND ELIZABETH HOLMES.
MR. WADE: ALL RIGHT. SO YOU TALKED ABOUT THE MEETING, AND I'LL ASK YOU SOME QUESTIONS ABOUT THAT IN A SECOND.
LISA PETERSON: UH-HUH.
MR. WADE: DID YOU TALK -- DID YOU TALK AT ALL WITH MR. TUBERGEN ABOUT ANY OTHER INTERACTIONS THAT HE HAD AT THE BDT CAPITAL CONFERENCE WITH RESPECT TO THERANOS?
LISA PETERSON: NO, NO.
MR. WADE: OKAY. ARE YOU AWARE THAT, ARE YOU AWARE THAT MS. HOLMES SPOKE ON A PANEL AT THE BDT CONFERENCE?
MR. WADE: OKAY. ARE YOU AWARE THAT MS. HOLMES HOSTED A DINNER WITH TOBY COSGROVE FROM THE CLEVELAND CLINIC AT THE BDT CONFERENCE?
MR. WADE: AND YOU DIDN'T HAVE ANY DISCUSSIONS WITH MR. TUBERGEN ABOUT ANY OF THOSE KINDS OF TOPICS?
(PAUSE IN PROCEEDINGS.)
BY MR. WADE:
MR. WADE: NOW, YOU TALKED ABOUT THE MEETING THAT MR. TUBERGEN HAD WITH ELIZABETH HOLMES, CHRISTIAN HOLMES, AND DAN MOSLEY. DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: THAT'S MY UNDERSTANDING.
MR. WADE: AND, AGAIN, YOU DON'T KNOW WHAT INFORMATION MR. MOSLEY IMPARTED TO MR. TUBERGEN IN ADVANCE OF THAT MEETING; CORRECT?
LISA PETERSON: NO. ONLY THAT HE WAS EXCITED ABOUT THE OPPORTUNITY.
MR. WADE: OKAY. AND ARE YOU AWARE IF MR. MOSLEY PROVIDED MR. TUBERGEN WITH ANY MATERIALS IN ADVANCE OF THAT MEETING?
LISA PETERSON: 125 --
JUDGE DAVILA: 12751?
LISA PETERSON: OKAY.
BY MR. WADE:
MR. WADE: AND DO YOU SEE THIS IS AN EMAIL ON SEPTEMBER 17TH, 2014 FROM DAN MOSLEY TO JERRY TUBERGEN?
LISA PETERSON: YES, I SEE THAT.
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU RECALL THAT WHEN YOU WERE RIDING BACK TO MICHIGAN FROM CHICAGO THAT MR. MOSLEY PULLED UP ON HIS COMPUTER THE ARTICLE AND SHOWED IT TO YOU?
LISA PETERSON: NO. NO, I DON'T RECALL THAT.
MR. WADE: DO YOU RECALL MAKING PRIOR STATEMENTS IN CONNECTION WITH PROCEEDINGS AND RELATING TO THERANOS THAT THAT'S WHAT HAPPENED?
LISA PETERSON: I THINK HE HAD IT IN -- ON PAPER.
LISA PETERSON: YES.
MR. LEACH: NO OBJECTION, YOUR HONOR.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(DEFENDANT'S EXHIBIT 12751 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
MR. WADE: OKAY. YOU SEE 12751 AND YOU SEE THE ATTACHMENT THAT'S SEPTEMBER 17TH, 2014? DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND I THINK -- DO YOU SEE THERE THAT THE ATTACHMENT SAYS THERANOS.PDF? DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: AND DO YOU RECOGNIZE THAT AS THE SAME FILE NAME AS THE ATTACHMENT OF THE DOCUMENT THAT MR. LEACH SHOWED YOU PREVIOUSLY WHERE MR. TUBERGEN SENT THE DOCUMENT TO THE DEVOS FAMILY?
LISA PETERSON: I'M SORRY, WHAT IS THE QUESTION? IS THIS THE SAME ONE THAT MR. LEACH SHOWED ME? YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
COURT CLERK: IS THAT IN EVIDENCE, COUNSEL?
LISA PETERSON: YES.
MR. WADE: AND THAT'S THE SAME, THAT'S THE SAME "FORTUNE" ARTICLE THAT MR. TUBERGEN HAD SENT ON TO MEMBERS OF THE DEVOS FAMILY? DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: AND THOSE COMMUNICATIONS HAPPENED THE DAY AFTER THE MEETING THAT MS. HOLMES HAD WITH MR. TUBERGEN; CORRECT?
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU SEE IN THIS DOCUMENT, IF YOU LOOK ON THE THIRD LINE, IT SAYS, "I'D LIKE TO SEE IF WE CAN FIND 15 MINUTES TOMORROW TO SHARE WITH YOU AND DISCUSS A VERY UNIQUE INVESTMENT OPPORTUNITY WE MAY HAVE WITH HER COMPANY." DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: I DON'T KNOW.
LISA PETERSON: NO, I DON'T KNOW SPECIFICALLY. I WAS NOT ON IT.
MR. WADE: OKAY. DO YOU KNOW WHETHER -- DO YOU KNOW WHETHER, AROUND THIS TIME, MR. TUBERGEN WAS HAVING ANY COMMUNICATIONS WITH THE MEMBERS OF THE DEVOS FAMILY?
LISA PETERSON: YES, HE WAS.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: I WASN'T INVOLVED IN THE COMMUNICATIONS, BUT I WAS ASKED TO WORK ON IT, SO I KNOW THERE WAS COMMUNICATION GOING ON.
LISA PETERSON: YES.
MR. WADE: AND YOU HAD A CONVERSATION ON THE PLANE ON THE 18TH WITH MR. TUBERGEN AND MR. DAMSTRA; CORRECT?
LISA PETERSON: YES.
MR. WADE: AND THEN ABOUT 12 DAYS WENT BY AND YOU HADN'T HEARD ANYTHING, SO YOU ACTUALLY FOLLOWED UP WITH MR. DAMSTRA AND SAID, IF THERE'S AN OPPORTUNITY, I'D LIKE TO, I'D LIKE TO WORK ON THIS. DO YOU RECALL THAT?
LISA PETERSON: I WAS ENTHUSED FROM THE VERY BEGINNING, AND I'M NOT ON THE BDT RELATIONSHIP, SO I THOUGHT THAT THIS MIGHT GO TO THE PERSON THAT WAS IN CHARGE OF BDT.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
MR. WADE: AND COMING OUT OF THIS, COMING OUT OF THIS MEETING, BETWEEN THE TIME THAT YOU HAD THOSE INTERACTIONS WITH MR. TUBERGEN AND THE TIME THAT YOU GOT ON THE PLANE TO GO TO CALIFORNIA, YOU DIDN'T HAVE ANY INTERACTIONS WITH THE DEVOS FAMILY MEMBERS ABOUT THIS?
LISA PETERSON: OTHER THAN SHARING MY MEMOS, NO.
LISA PETERSON: YES, BECAUSE WE TALKED ABOUT IT ON THE PLANE.
LISA PETERSON: WE WENT THROUGH THE MEMO ON THE PLANE.
MR. WADE: OKAY. DO YOU RECALL GIVING TESTIMONY IN THIS CASE IN CONNECTION WITH THERANOS MATTERS PREVIOUSLY?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: DO YOU RECALL THAT? AND THERE WAS A COURT REPORTER LIKE OUR COURT REPORTER HERE TAKING DOWN EVERYTHING THAT YOU SAID? DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: IF YOU CAN SHOW ME WHAT YOU'RE REFERRING TO, MAYBE IT WILL REFRESH MY MEMORY.
LISA PETERSON: YES.
MR. WADE: AND DID YOU TESTIFY IN THAT DEPOSITION THAT YOU DON'T KNOW WHETHER THE DEVOS FAMILY MEMBERS REVIEWED ANY OF YOUR MEMOS?
LISA PETERSON: I KNOW THAT WE TALKED ABOUT ALL OF THE WORK THAT I HAD DONE ON THE AIRPLANE ON THE WAY HERE, SO YES.
LISA PETERSON: I DON'T KNOW IF THEY HAD ACTUALLY PHYSICALLY PUT THEIR EYES ON THE MEMO, BUT WE DEFINITELY TALKED ABOUT THE SUBSTANCE OF MY MEMO ON THE PLANE.
MR. WADE: OKAY. OKAY. I JUST WANT TO MAKE SURE OUR RECORD IS CLEAR. YOU DON'T KNOW WHETHER THEY READ YOUR MEMO; CORRECT?
LISA PETERSON: CORRECT.
LISA PETERSON: YES, LOTS OF THEM.
MR. WADE: OKAY. THE NEXT INTERACTION THAT YOU HAD WITH THERANOS -- WELL, LET ME STEP BACK. LET ME ASK YOU ANOTHER QUESTION ABOUT MR. MOSLEY. ARE YOU AWARE THAT -- I WANT TO SHOW YOU A DOCUMENT. IF YOU LOOK AT 4197.
LISA PETERSON: OKAY.
LISA PETERSON: I DON'T RECALL. DEFINITELY NOT PRIOR TO OUR MAKING THE INVESTMENT.
MR. WADE: OKAY. DO YOU RECALL -- LET'S TAKE IT ONE PIECE AT A TIME. DO YOU RECALL WHETHER YOU'VE SEEN THIS DOCUMENT BEFORE?
LISA PETERSON: I DON'T RECALL.
MR. WADE: OKAY. LET'S LOOK AT 10587. ACTUALLY, BEFORE I DO THAT, LET ME JUST ASK A QUESTION ABOUT DO YOU KNOW WHETHER -- LET'S GO TO 10587.
JUDGE DAVILA: 10587?
MR. WADE: DO YOU SEE THAT THIS IS AN EMAIL THAT WAS SENT TO YOU BY HUGH FREUND IN 2017? I'M LOOKING AT THE COVER EMAIL RIGHT NOW.
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU SEE THAT HE ATTACHES THE DOCUMENT THAT I WAS REFERRING TO AS EXHIBIT 4197?
LISA PETERSON: OKAY, YES.
MR. WADE: OKAY. MOVE THE ADMISSION OF -- AND THIS IS AN INVESTMENT ANALYSIS THAT MR. MOSLEY DID IN CONNECTION WITH THERANOS; CORRECT?
LISA PETERSON: CORRECT.
MR. LEACH: HEARSAY ON 10587, YOUR HONOR. I HAVE NO OBJECTION TO THE PRIOR EXHIBIT THAT WE WERE LOOKING AT.
JUDGE DAVILA: WILL THAT WORK FOR YOU, MR. WADE?
JUDGE DAVILA: 4197?
MR. WADE: IF THE GOVERNMENT IS OKAY WITH ME ASKING QUESTIONS OF 4197, MAYBE I'LL JUST ASK THE QUESTION.
JUDGE DAVILA: SURE.
MR. LEACH: NO OBJECTION.
JUDGE DAVILA: THAT'S ADMITTED, AND IT MAY BE PUBLISHED.
(GOVERNMENT'S EXHIBIT 4197 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
MR. WADE: OKAY. DO YOU SEE HERE THIS IS A DAY -- THIS IS A DAY -- OR A DOCUMENT FROM MR. MOSLEY. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND ATTACHED TO THIS, IF YOU GO TO THE SECOND PAGE, AND IT'S SEPTEMBER 2ND -- I'M SORRY. IT'S SEPTEMBER 2ND, 2014; RIGHT?
LISA PETERSON: BUT I DIDN'T SEE THIS UNTIL THREE YEARS LATER.
LISA PETERSON: OKAY. OKAY.
LISA PETERSON: YES.
MR. WADE: OKAY. AND THAT IS A COUPLE OF WEEKS BEFORE THE MEETING THAT MR. MOSLEY AND MR. TUBERGEN AND MS. HOLMES HAD IN CHICAGO AT THE BDT CONFERENCE; CORRECT?
LISA PETERSON: YES.
MR. WADE: OKAY. LET'S GO TO THE SECOND PAGE. AND IF YOU LOOK, AND I WON'T GO THROUGH THE DETAILS OF IT NOW, BUT IF WE JUST SCROLL THROUGH THE PAGES, THERE'S A PRETTY DETAILED ANALYSIS THAT MR. MOSLEY HAD DONE WITH RESPECT TO THERANOS; CORRECT?
LISA PETERSON: IT APPEARS THAT WAY, YES.
MR. WADE: OKAY. OKAY. AND DO YOU KNOW WHETHER THIS DOCUMENT WAS COMMUNICATED TO MR. TUBERGEN BEFORE HIS MEETING WITH MS. HOLMES?
LISA PETERSON: NOT TO MY KNOWLEDGE.
LISA PETERSON: I DON'T KNOW.
MR. WADE: OKAY. AND DO YOU KNOW WHETHER THE SUBSTANCE OF THIS ANALYSIS WAS COMMUNICATED ORALLY BY MR. MOSLEY TO MR. TUBERGEN IN PART OR IN WHOLE?
LISA PETERSON: I DON'T KNOW.
MR. WADE: OKAY. THIS DOCUMENT, DO YOU RECALL THAT THIS DOCUMENT WAS LATER COMMUNICATED TO YOU IN YOUR GMAIL ACCOUNT?
LISA PETERSON: YES.
LISA PETERSON: NOT REGULARLY, NO.
MR. WADE: OKAY. AND DO YOU RECALL THEN THAT YOU FORWARDED THIS DOCUMENT FROM YOUR GMAIL ACCOUNT TO A GMAIL ACCOUNT AND A HOME ACCOUNT RELATING TO MR. TUBERGEN?
LISA PETERSON: YES.
LISA PETERSON: I NORMALLY COMMUNICATE WITH MR. TUBERGEN WITH MY WORK EMAIL, YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND WERE -- IS THE FACT THAT IT WAS BEING COMMUNICATED BY GMAIL SOME INDICATION THAT YOU WERE TRYING TO HIDE THE DOCUMENT?
LISA PETERSON: EVERYTHING AROUND THIS, WE WERE TRYING TO UNDERSTAND MR. MOSLEY'S ROLE IN THE THERANOS INVESTMENT, AND WE COULDN'T FIGURE IT OUT, AND WE HAD NOT SEEN THIS. AND ONE OF THE OTHER -- ONCE WE UNDERSTOOD WHO THE OTHER INVESTORS WERE, ONE OF THE OTHER INVESTORS GAVE US THIS.
LISA PETERSON: AND UNTIL WE UNDERSTOOD WHAT HIS ROLE WAS IN ALL OF THIS.
LISA PETERSON: UH-HUH.
LISA PETERSON: YES.
MR. WADE: AND YOU WERE DOING SOME WORK TO FIGURE OUT WHAT MR. MOSLEY'S ROLE IN THE INVESTMENTS WAS; RIGHT?
LISA PETERSON: CORRECT, AND WHETHER HE WAS COMPENSATED.
MR. WADE: AND HE HAD ACTUALLY -- PRIOR TO THE INVESTMENT, HE HAD DONE LEGAL WORK FOR THE DEVOS FAMILY; CORRECT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. MY QUESTION IS, AS YOU'RE TRYING TO FIGURE THIS OUT, IS THERE A REASON THAT THESE DOCUMENTS ARE BEING COMMUNICATED IN GMAIL AS OPPOSED TO WORK EMAIL?
LISA PETERSON: BECAUSE AT THIS TIME THERE WAS ALL KINDS OF ISSUES GOING ON AROUND THE COMPANY, AND WE DIDN'T KNOW WHETHER MR. MOSLEY -- WHAT HIS ROLE WAS IN ALL OF THIS AND, FRANKLY, WE DID NOT WANT TO GET HIM IN TROUBLE.
LISA PETERSON: CORRECT.
LISA PETERSON: SOMEWHAT, YES.
MR. WADE: DO YOU KNOW -- YOU TESTIFIED THAT MR. MOSLEY WORKED AT THE LAW FIRM OF CRAVATH, SWAINE & MOORE. DO YOU RECALL THAT?
LISA PETERSON: YES.
MR. WADE: AND DO YOU RECALL THAT LEARNING, DURING YOUR WORK RELATING TO THERANOS, THAT HE USED -- THAT THERANOS HAD A LAWYER BY THE NAME OF MR. DAVID BOIES?
LISA PETERSON: YES, I KNEW THAT.
MR. WADE: AND WERE YOU AWARE THAT MR. DAVID BOIES USED TO BE LAW PARTNERS WITH MR. MOSLEY AT CRAVATH, SWAINE & MOORE?
MR. WADE: WERE YOU AWARE AT ANY TIME THAT MR. MOSLEY WAS DOING DUE DILIGENCE AND OBTAINING INFORMATION FROM DAVID BOIES IN CONNECTION WITH THERANOS?
MR. LEACH: FOUNDATION. RELEVANCE.
JUDGE DAVILA: I'LL ALLOW IT. YOU CAN --
BY MR. WADE:
MR. WADE: ARE YOU -- DO YOU KNOW WHETHER MR. TUBERGEN LEARNED OF ANY OF THOSE FACTS IN CONNECTION WITH THE INVESTMENT?
LISA PETERSON: NOT TO MY KNOWLEDGE.
MR. WADE: OKAY. MR. TUBERGEN CAME OUT OF THE MEETING WITH MS. HOLMES VERY EXCITED ABOUT THE POTENTIAL INVESTMENT; CORRECT?
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: I DON'T KNOW WHAT OTHER INTERACTIONS HE HAD, BUT HE WAS VERY EXCITED ABOUT THE MEETING THAT HE HAD WITH CHRISTIAN AND ELIZABETH.
LISA PETERSON: HE CAME BACK HIGHLY INTERESTED AND LOOKING AT THE OPPORTUNITY AND TAKING IT TO THE FAMILY.
LISA PETERSON: I DON'T SEE HIS BEHAVIOR ANY DIFFERENT THAN NORMAL. HE WAS, HE WAS EXCITED ABOUT AN OPPORTUNITY THAT WE HAD A CHANCE TO LOOK AT, AND WE LOOKED AT IT, AND IT WENT THROUGH THE PROPER PROCESS OF GOING THROUGH THE INVESTMENT COMMITTEE.
MR. WADE: DO YOU RECALL, DO YOU RECALL WHAT DROVE THE INVESTMENT WAS MR. TUBERGEN'S BELIEF THAT THERANOS WAS A UNICORN?
LISA PETERSON: I DON'T RECALL THAT.
LISA PETERSON: CAN YOU EXPLAIN IT?
MR. WADE: I'M ASKING YOU. YOU'RE THE INVESTMENT PROFESSIONAL. I'M WONDERING IF YOU KNOW WHAT A UNICORN IS.
LISA PETERSON: (LAUGHTER.) IT'S NOT SOMETHING THAT WE NORMALLY INVEST WITH. HIGH GROWTH INVESTMENTS LIKE THAT, WE DON'T AT ALL INVEST WITH THOSE.
MR. WADE: AND WHEN YOU SAY "HIGH GROWTH INVESTMENTS," UNICORNS ARE USUALLY INVESTMENTS THAT CAN REALLY POP; CORRECT?
LISA PETERSON: THAT'S YOUR DEFINITION, YES. THAT'S YOUR DEFINITION, OKAY?
LISA PETERSON: I DON'T DEAL IN INVESTING IN UNICORNS, SO --
MR. WADE: OKAY. AND YOU DON'T RECALL THAT WHAT DROVE THE INVESTMENT IN THE CASE OF THERANOS WAS MR. TUBERGEN'S BELIEF THAT THERANOS WAS A UNICORN?
LISA PETERSON: I DON'T BELIEVE THAT WAS THE CASE. WE WERE RELYING ON FOUR KEY ELEMENTS OF THIS, WHICH WERE THE FINANCIALS THAT WERE SOLID, THE CONTRACTS THAT WERE IN PLACE, THE FACT THAT THEY HAD DONE WORK FOR THE LAST FIVE TO SEVEN YEARS WITH PHARMACEUTICAL COMPANIES THAT, THAT SUBSTANTIATED THE ACCURACY OF IT. THOSE ARE WHAT WE BASED OUR INVESTMENT DECISION ON.
LISA PETERSON: I INFORMED THE INVESTMENT COMMITTEE THAT MADE THE INVESTMENT DECISION, YES, AS WELL AS THEM GOING IN THE MEETING.
LISA PETERSON: CORRECT.
MR. WADE: AND YOU DON'T KNOW WHETHER ANY OF YOUR MEMOS WERE EVER READ BY THE INVESTMENT COMMITTEE; RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND, IN FACT, THE INVESTMENT IN THERANOS WAS COMMITTED TO BEFORE YOU EVEN PREPARED THAT MEMO, THE SECOND MEMO; CORRECT?
LISA PETERSON: THAT'S NOT CORRECT.
MR. WADE: OKAY. WE'LL GET TO THAT. BUT STICKING WITH THE UNICORN, DO YOU RECALL THAT YOU GAVE AN INTERVIEW WITH THE S.E.C. AND THE DEPARTMENT OF JUSTICE IN APRIL OF 2017?
LISA PETERSON: YES.
MR. WADE: AND DO YOU RECALL THAT WAS, THAT WAS A MEETING WHERE, WHERE MANY OF THE -- A COUPLE OF THE PROSECUTORS MAYBE HERE ATTENDED. DO YOU RECALL THAT?
LISA PETERSON: I DON'T RECALL WHO WAS IN THE ROOM EXACTLY, BUT I REMEMBER THE INTERVIEW.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU RECALL, IN CONNECTION WITH THAT, THAT YOUR ATTORNEYS HAD MEETINGS IN ADVANCE WITH THE S.E.C.?
LISA PETERSON: I DON'T RECALL ANY OF THAT, NO.
MR. WADE: OKAY. DO YOU RECALL IN ADVANCE THAT YOUR ATTORNEYS TOLD THE S.E.C. AND DOJ THAT WHAT DROVE THE INVESTMENT WAS A UNICORN?
MR. LEACH: OBJECTION.
JUDGE DAVILA: SUSTAINED.
LISA PETERSON: I DON'T RECALL THAT.
JUDGE DAVILA: SUSTAINED. SUSTAINED. THE ANSWER IS STRICKEN. YOU CAN ASK ANOTHER QUESTION.
BY MR. WADE:
LISA PETERSON: CAN YOU DIRECT ME TO WHAT YOU'RE REFERRING TO?
MR. WADE: YEAH, I WILL. AND JUST SO WE'RE CLEAR, READ IT TO YOURSELF. PLEASE DON'T SPEAK UNTIL AFTER I ASK YOU A QUESTION JUST SO NEITHER ONE OF US GET IN TROUBLE, OKAY? THE -- IF YOU CAN LOOK ABOUT TWO-THIRDS OF THE WAY DOWN THE PAGE, MAYBE THREE QUARTERS OF THE WAY, DO YOU SEE WHAT DROVE INVESTMENT? DO YOU SEE THAT LANGUAGE? IF I COULD APPROACH, I CAN POINT IT OUT, YOUR HONOR.
JUDGE DAVILA: SURE. GO RIGHT AHEAD. GO RIGHT AHEAD. YES.
LISA PETERSON: I DON'T RECALL EVER SAYING THAT WORD. I SEE THAT. I DO NOT EVER RECALL SAYING THAT WORD. IT'S NOT SOMETHING I WOULD EVER USE. I DO RECALL IT SAYS RELIED ON LONG-TERM CONTRACTS WITH WALGREENS AND SAFEWAY.
BY MR. WADE:
MR. LEACH: OBJECTION.
JUDGE DAVILA: SUSTAINED. WHY DON'T WE MOVE ON?
LISA PETERSON: I WOULD NEVER USE THE WORD "UNICORN."
BY MR. WADE:
MR. WADE: JUST TO BE CLEAR, JUST SO THE RECORD IS CLEAR, I WAS NEVER SUGGESTING THAT YOU WERE. DO YOU RECALL THAT YOUR LAWYERS ON YOUR BEHALF PROFFERED THOSE FACTS?
MR. LEACH: OBJECTION. FOUNDATION.
JUDGE DAVILA: DO YOU HAVE ANOTHER QUESTION?
JUDGE DAVILA: GREAT.
BY MR. WADE:
MR. WADE: AFTER YOUR MEETING WITH MR. TUBERGEN ON THE AIRPLANE, WHEN DID YOU NEXT MEET WITH HIM IN CONNECTION WITH THE THERANOS INVESTMENT?
LISA PETERSON: I BELIEVE HE -- WE TALKED THE DAY OF THE CALL WITH ELIZABETH HOLMES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: WE TALKED AHEAD OF THE CALL AND AFTER THE CALL.
MR. WADE: OKAY. AND THAT WAS THE POINT AT WHICH MR. TUBERGEN GAVE YOU THE BINDERS; IS THAT RIGHT?
LISA PETERSON: YES.
MR. WADE: AND THERE WERE TWO -- I BELIEVE YOU'VE SAID PREVIOUSLY THAT THERE WERE TWO BINDERS; IS THAT RIGHT?
LISA PETERSON: THERE WERE TWO BINDERS. I WENT UP AND GOT THE BINDERS EARLY THAT MORNING AND STARTED GOING THROUGH THEM AND DEVELOPING QUESTIONS FOR THE CALL LATER THAT DAY.
LISA PETERSON: NO. HE EMAILED ME AND SAID THAT THERE WAS GOING TO BE A CALL THAT DAY AND COULD I ATTEND, AND I SAID YES. AND THEN HE SAID THAT THE BINDERS HAD ARRIVED AND THEY WERE ON HIS DESK, AND SO I WENT AND GOT THEM AND MADE A COPY.
LISA PETERSON: AND I BEGAN LOOKING AT THEM AHEAD OF THE CALL THAT WAS LATER THAT AFTERNOON.
MR. WADE: OKAY. AND WITH RESPECT TO THAT CALL, DO YOU RECALL THAT THAT WAS ABOUT LESS THAN HALF AN HOUR?
LISA PETERSON: IT WAS PROBABLY HALF AN HOUR.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
MR. WADE: AND I THINK THAT'S 2015, WHICH IS PROBABLY IN BOTH BINDERS. DO YOU HAVE THAT IN FRONT OF YOU?
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU SEE AT THE TOP THE FIRST HEADING IS "WHAT IS THE LONG-TERM VISION OF THERANOS?"
LISA PETERSON: YES.
LISA PETERSON: NO. IT'S JUST A QUESTION THAT WE HAD.
MR. WADE: OKAY. DO YOU RECALL HIM, WHEN HE CAME BACK WITH THE FAMILY AND WITH YOU, HE WAS SPEAKING ABOUT THE LONG-TERM VISION THAT THE COMPANY HAD?
LISA PETERSON: WELL, I THINK IT'S ONE OF MANY ASPECTS IN UNDERWRITING THAT WE UNDERTAKE WHAT IS THE LONG-TERM VISION AND GROWTH OF THE COMPANY.
MR. WADE: RIGHT. I WAS ASKING SPECIFICALLY WITH RESPECT TO MR. TUBERGEN. DO YOU RECALL HIM SPEAKING ABOUT THE VISION OF THE COMPANY, HIS INTEREST IN THE LONG-TERM VISION OF THE COMPANY?
LISA PETERSON: YEAH, BUT IT WASN'T THE ONLY THING THAT HE WAS FOCUSSED ON.
LISA PETERSON: IT WAS THE FIRST QUESTION ON MY LIST OF QUESTIONS.
COURT CLERK: ZOOM JUST WENT DOWN.
JUDGE DAVILA: OKAY. EXCUSE ME JUST A SECOND. WHY DON'T WE TAKE OUR BREAK NOW? I UNDERSTAND THAT THEY'RE HAVING PROBLEMS WITH THE ZOOM FEED.
JUDGE DAVILA: SO LET'S TAKE A BREAK NOW. 30 MINUTES, 30 MINUTE BREAK, PLEASE.
(PAUSE IN PROCEEDINGS.)
(RECESS FROM 1:32 P.M. UNTIL 2:02 P.M.)
JUDGE DAVILA: THANK YOU. PLEASE BE SEATED. THANK YOU. WE'RE BACK ON THE RECORD. ALL PARTIES PREVIOUSLY PRESENT ARE PRESENT ONCE AGAIN. MS. HOLMES IS PRESENT. MR. WADE, YOU HAVE ADDITIONAL QUESTIONS?
MR. WADE: MS. PETERSON, I THINK WE WERE ABOUT TO TALK A LITTLE BIT ABOUT THE CALL THAT YOU HAD WITH MS. HOLMES. DO YOU RECALL THAT THE PURPOSE OF THE CALL WAS TO GET A BETTER SENSE OF HER VISION?
LISA PETERSON: THE PURPOSE OF THE CALL WAS TO BE ASKING SOME QUESTIONS.
MR. WADE: OKAY. DO YOU RECALL IN ONE OF YOUR EARLIER MEETINGS WITH THE GOVERNMENT IN THIS CASE THAT YOU TOLD THEM THE PURPOSE OF THE CALL WAS TO GET A BETTER SENSE OF THE VISION?
LISA PETERSON: I DON'T RECALL THAT, BUT I -- WE HAD LISTED OUT THESE QUESTIONS. THESE ARE THE KIND OF THINGS THAT WE WERE -- THE DARKER, THE DARKER WORDS IN HERE ARE THE QUESTIONS THAT WE HAD GOING INTO THE CALL.
MR. WADE: MY QUESTION WAS DID, DID -- DO YOU RECALL TELLING THE GOVERNMENT THAT THE PURPOSE OF THE CALL WAS TO GET A BETTER SENSE OF HER VISION?
LISA PETERSON: I MAY HAVE. I DON'T RECALL EXACTLY.
MR. WADE: OKAY. LET'S TAKE A LOOK. IF YOU WOULD LOOK IN YOUR BINDER AT EXHIBIT 11249. TELL ME WHEN YOU HAVE THAT IN FRONT OF YOU. AGAIN, PLEASE READ THIS TO YOURSELF AND WAIT FOR MY QUESTION AFTER I DIRECT YOU TO THE SPOT. DO YOU HAVE THAT IN FRONT OF YOU?
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU RECALL THAT YOU MET WITH PEOPLE IN THE U.S. ATTORNEY'S OFFICE IN APRIL OF 2017?
LISA PETERSON: YES.
MR. WADE: OKAY. I WANT YOU TO LOOK IN THE ONE, TWO -- IN THE FOURTH PARAGRAPH, I THINK ABOUT FOUR SENTENCES IN THE SENTENCE THAT STARTS WITH "PETERSON HAD."
LISA PETERSON: I'M SORRY, WHICH PARAGRAPH?
LISA PETERSON: UH-HUH.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND DOES THAT REFRESH YOUR RECOLLECTION THAT YOU TOLD THE GOVERNMENT THAT THE PURPOSE OF THE CALL WAS TO GET A BETTER SENSE OF HER VISION?
LISA PETERSON: THAT'S NOT MY RECOLLECTION EXACTLY.
LISA PETERSON: THE CALL WAS TO BEGIN DOING DILIGENCE.
LISA PETERSON: THIS WAS THE START OF QUESTIONS. THAT'S DILIGENCE FOR US.
LISA PETERSON: THAT'S NOT WHAT I SAID.
LISA PETERSON: WE DID ALL, WE DID -- YES, ALL OF THE DILIGENCE THAT WE WERE GOING TO DO ON THIS INVESTMENT AT THE TIME.
MR. WADE: WHEN YOU SAY "ALL OF THE DILIGENCE THAT YOU WERE GOING TO DO ON THE INVESTMENT," WHAT DOES THAT MEAN?
LISA PETERSON: WE DID -- WE DID THE CALL AND WE WENT ON SITE AND WE DID -- THAT WAS OUR DILIGENCE.
MR. WADE: OKAY. DO YOU BELIEVE THAT YOU DID APPROPRIATE DUE DILIGENCE IN CONNECTION WITH THIS INVESTMENT?
LISA PETERSON: YES.
MR. WADE: AND DO YOU BELIEVE THAT YOU DID THOROUGH DUE DILIGENCE IN CONNECTION WITH THIS INVESTMENT?
LISA PETERSON: I THINK WE DID APPROPRIATE DUE DILIGENCE FOR WHAT WE WERE DOING, YES.
MR. WADE: OKAY. THE, THE -- IF YOU CAN BRING BACK IN FRONT OF YOU THE DOCUMENT THAT WE LEFT OFF WITH IN 2015. DO YOU HAVE THAT IN FRONT OF YOU?
LISA PETERSON: YES.
MR. WADE: OKAY. CAN WE BRING THAT UP? IT'S IN EVIDENCE. OKAY. YOU WERE ASKED SOME QUESTIONS ABOUT THIS ON DIRECT; DO YOU RECALL?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND THEN -- AND IT GIVES SOME DETAILS. WAS THIS INFORMATION IN RESPONSE TO QUESTIONS THAT YOU HAD ASKED?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: WE ACTUALLY DID PULL THE 10K FROM THE -- FROM 2013.
LISA PETERSON: IT SAID THAT THEY WERE GOING TO GO AND BEGIN LAUNCHING THEIR -- WITH THERANOS. IT WAS TWO OR THREE SENTENCES IN THE 10K.
LISA PETERSON: I DON'T RECALL.
MR. WADE: OKAY. LET'S LOOK AT 1113. IT'S IN EVIDENCE. IT'S UP ON YOUR SCREEN IF YOU'D LIKE AND IF IT'S EASIER.
LISA PETERSON: OKAY.
LISA PETERSON: YES.
MR. WADE: OKAY. AND IN LOOKING AT 1113, DO YOU RECOGNIZE THAT AS THE JOINT PRESS RELEASE BETWEEN WALGREENS AND THERANOS? DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: AND THAT WAS OUT ON THE INTERNET. DO YOU KNOW IF YOU FOUND THIS AS PART OF YOUR INTERNET RESEARCH?
LISA PETERSON: I DON'T RECALL.
MR. WADE: OKAY. IF YOU, IF YOU -- DO YOU RECALL YOUR TESTIMONY ON DIRECT THAT YOU WEREN'T AWARE OF ANY VENOUS DRAWS BEING DONE AT THERANOS?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND YOU DIDN'T GO TO A WALGREENS LOCATION AT THE TIME AND SEE WHAT KIND OF DRAWS THEY USED; CORRECT?
LISA PETERSON: CORRECT.
MR. WADE: AND IF YOU LOOK AT THE LAST SENTENCE IN THIS PRESS RELEASE, IF WE CAN JUST HIGHLIGHT THAT, DO YOU SEE IT SAYS, "THE SAMPLES ARE EITHER TAKEN FROM A TINY FINGERSTICK OR A MICRO-SAMPLE TAKEN FROM TRADITIONAL METHODS." DO YOU SEE THAT?
LISA PETERSON: I SEE THAT.
LISA PETERSON: I DON'T RECALL LOOKING AT THIS.
LISA PETERSON: YES.
MR. WADE: AND DO YOU KNOW WHETHER YOU WENT AND LOOKED AT -- YOU SAID YOU DID INTERNET RESEARCH; CORRECT?
LISA PETERSON: SOME, YES.
LISA PETERSON: WE DID ADEQUATE DILIGENCE FOR THIS DEAL, YES.
LISA PETERSON: YES.
LISA PETERSON: I DON'T RECALL. I REMEMBER GOING ON THERANOS'S WEBSITE AND LOOKING AT THE PRICE LISTINGS AND EVERYTHING ELSE THAT SHE HAD TALKED ABOUT.
LISA PETERSON: TRYING TO VERIFY THAT THAT WAS TRUE.
LISA PETERSON: YES.
LISA PETERSON: IT WAS A LOT. I DIDN'T COUNT THEM.
MR. WADE: IT WAS A LOT. OKAY. AND WHEN YOU WERE THERE, YOU DON'T RECALL WHETHER YOU LOOKED AT THIS PRESS RELEASE ON EITHER OF THE COMPANIES' WEBSITES?
MR. WADE: OKAY. DID YOU LOOK -- DO YOU RECALL ASKING ANY FOLLOW-UP QUESTIONS ABOUT WALGREENS AND HOW THE RELATIONSHIP WORKED OF THERANOS?
LISA PETERSON: WE ASKED A LOT OF QUESTIONS ABOUT WALGREENS AND SPECIFICALLY WHAT THE ROLLOUT PLAN WAS AND WHERE WERE THEY AT THE MOMENT, IN 42 OR -- 40 OR 42 LOCATIONS IN ARIZONA, AND WE ASKED SPECIFICALLY ABOUT WHAT THE ROLLOUT PLAN WAS. THEY WERE ALREADY OPERATING IN WALGREENS STORES, SO THE PRESS RELEASE WASN'T THAT RELEVANT TO US.
LISA PETERSON: WE WANTED TO KNOW WHAT LOCATIONS WERE THEY GOING TO OPEN IN AND WHEN, AND WE WENT THROUGH THAT.
MR. WADE: OKAY. DID YOU LEARN HOW THE WALGREENS -- HOW IT WORKED AT WALGREENS WITH THERANOS, I MEAN, WHAT THE EXPERIENCE WAS LIKE?
LISA PETERSON: WELL, CHERI WAS TESTED, SO IT WAS SIMILAR TO WHAT WE WERE TOLD. CHERI WAS TESTED AT THEIR LOCATION AND, LIKE I SAID, THEY HAD PUT SOME TINY CLINIC INSIDE OF THEIR BUILDING AND THEY SAID THIS WAS VERY MUCH THE LOOK AND FEEL OF THE CLINIC INSIDE OF A WALGREENS.
MR. WADE: OKAY. THAT WASN'T MY QUESTION. MY QUESTION WAS, DID YOU LEARN ABOUT WHAT IT WAS LIKE, HOW THEY WERE OPERATING WITHIN THE WALGREENS AND WITH DIFFERENT WALGREENS LOCATIONS?
LISA PETERSON: LEARN HOW THEY WERE OPERATING?
LISA PETERSON: EVERYTHING THAT SHE HAD TOLD US WAS THAT THEY WERE DOING FINGERSTICK AT WALGREENS.
MR. WADE: OH, I UNDERSTAND THAT. YOU'VE SAID THAT. BUT EXPLAIN TO ME WHAT HAPPENED WHEN A PATIENT GOES INTO A WALGREENS AT THERANOS IN THIS PERIOD BEFORE YOU ARE MAKING THE INVESTMENT.
LISA PETERSON: IT WAS OUR UNDERSTANDING THAT THEY WOULD GO IN, EXACTLY LIKE CHERI DID, INTO A CLINIC AND HAVE A FINGERSTICK DRAW.
LISA PETERSON: AND THEN IT WAS TESTED RIGHT THERE.
LISA PETERSON: IN THE MACHINES, YEAH.
LISA PETERSON: YES.
LISA PETERSON: THEY, THEY SAID THEY HAD A LAB THAT WAS RUNNING SOME OF THE TESTS, BUT EVERYTHING WAS FINGERSTICK. BUT EVERYTHING THAT WAS GOING ON IN THE 42 WALGREENS STORES, IT WAS OUR IMPRESSIONS THAT THIS WAS DONE AT WALGREENS.
LISA PETERSON: THEY TOLD US THAT.
LISA PETERSON: YES.
LISA PETERSON: THERE WERE OTHER TESTS THAT THEY WERE DOING AND THEY SAID THAT THEY WERE DOING WORK FOR THESE PHARMACEUTICAL COMPANIES AND EVERYTHING ELSE, WHICH IS WHAT WE THOUGHT THEY WERE DOING AT THEIR LAB.
LISA PETERSON: FOR OTHER THINGS BESIDES WALGREENS.
MR. WADE: DID YOU EVER TAKE THE TIME IN ANY OF THESE MEETINGS TO CLARIFY ANY OF THESE ISSUES AND ASK QUESTIONS?
LISA PETERSON: WE ASKED QUESTIONS AND WE GOT ANSWERS THAT WE WERE SATISFIED WITH THAT ARE DIFFERENT THAN WHAT CAME OUT LATER.
MR. WADE: UNDERSTOOD. YOU WENT UNDER THE -- BUT YOU NEVER ACTUALLY WENT TO ONE OF THOSE WALGREENS LOCATIONS AND FIGURED OUT WHAT HAPPENED ONCE THE BLOOD WAS GIVEN?
LISA PETERSON: BECAUSE THEY SAID IT WAS VERY MUCH LIKE THE EXPERIENCE THAT CHERI HAD AT THE OFFICE, THE CLINIC.
MR. WADE: OKAY. I THINK YOU TESTIFIED IN YOUR INTERNET RESEARCH THAT YOU WENT ONTO THE WEBSITES OF BOTH COMPANIES.
LISA PETERSON: BOTH COMPANIES?
LISA PETERSON: I WENT AND PULLED THE 10K, YES --
LISA PETERSON: -- FROM WALGREENS.
LISA PETERSON: BUT I DID NOT GO ON THE WEBSITE OF WALGREENS.
LISA PETERSON: YES.
MR. WADE: AND DID YOU READ THE LANGUAGE WHERE THEY TALKED ABOUT USING VENOUS DRAWS ON THE WEBSITE OF THERANOS?
LISA PETERSON: I DON'T RECALL EVER SEEING THAT, NO.
LISA PETERSON: I DON'T RECALL WHAT I LOOKED AT THERE EXACTLY.
LISA PETERSON: NO. THAT WAS NOT MADE AWARE TO US UNTIL AFTER "THE WALL STREET JOURNAL" ARTICLE.
LISA PETERSON: NO, BUT WE DID NOT DO THAT.
MR. WADE: OKAY. DID YOU EVER ASK FOR ANY OF THE DETAILED INFORMATION ABOUT HOW IT -- HOW THE EXPERIENCE WORKED AT WALGREENS? DID YOU ASK FOR DOCUMENTS OR ANYTHING LIKE THAT?
LISA PETERSON: YES. WE ASKED HOW IT WORKED AND WE WERE SHOWN HOW IT WORKED WITH CHERI.
LISA PETERSON: I HAD SUGGESTED IT BECAUSE I DID KNOW THE CIO OF WALGREENS AT THE TIME, YES.
LISA PETERSON: YES.
LISA PETERSON: HE SAID -- YES, HE ADVISED NOT TO DO THAT. THE KEY THING THERE WAS, YOU KNOW, THIS WAS LARGELY AN INVITATION ONLY, AND WE FELT THAT IF WE HAD CIRCUMVENTED SOME OF THE PROCESS THAT WE FELT THAT WE WERE IN, THAT WE WOULD BE UNINVITED TO PARTICIPATE IN THIS OPPORTUNITY. SO WE WERE VERY CAREFUL NOT TO CIRCUMVENT THINGS AND UPSET ELIZABETH.
MR. WADE: SO THE ANSWER TO THE QUESTION ABOUT -- MR. TUBERGEN TOLD YOU NOT TO CONTACT WALGREENS; CORRECT?
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
LISA PETERSON: THE WALGREENS WAS IN ARIZONA. NO, I DID NOT GO TO ARIZONA.
LISA PETERSON: THAT IS NOT PART OF WHAT WE WOULD HAVE DONE.
LISA PETERSON: WE WERE RELYING ON WHAT WE WERE TOLD.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND DUE DILIGENCE IS A PROCESS WHERE PEOPLE, BEFORE THEY MAKE AN INVESTMENT, DO RESEARCH SO THAT THEY FULLY UNDERSTAND THE INVESTMENT; RIGHT?
LISA PETERSON: YES.
MR. WADE: OKAY. AND YOU SAW WITHIN THE AGREEMENT MR. LEACH SHOWED YOU THAT YOU HAD THE ABILITY TO DO DUE DILIGENCE; CORRECT?
LISA PETERSON: CORRECT.
MR. WADE: THERE WAS CONTRACTUALLY NOTHING THAT PROHIBITED YOUR ABILITY TO DO DUE DILIGENCE; RIGHT?
LISA PETERSON: WE DID DO DUE DILIGENCE.
LISA PETERSON: WE WERE ON SITE FOR FIVE HOURS. THAT WAS A LOT OF DUE DILIGENCE FOR US.
MR. WADE: THAT WASN'T MY QUESTION. MY QUESTION WAS, THERE WAS NOTHING IN THE CONTRACT THAT PREVENTED YOU FROM DOING DUE DILIGENCE; CORRECT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. SO YOU WERE FREE TO DO WHATEVER INVESTIGATION YOU WANTED TO MAKE SURE THAT YOU HAD A FULL AND ACCURATE UNDERSTANDING OF HOW THE COMPANY WAS OPERATING AT THE TIME; CORRECT?
LISA PETERSON: IT WAS CHARACTERIZED TO US. WE THOUGHT THAT IF WE DID MORE THAN WHAT -- IF WE DID TOO MUCH, WE WOULDN'T BE INVITED BACK TO INVEST. THAT WAS THE ISSUE.
MR. WADE: I UNDERSTAND HOW YOU -- HOW SOME PEOPLE AT RDV MAY HAVE FELT, BUT THAT WASN'T MY QUESTION. MY QUESTION WAS, THERE WASN'T NOTHING THAT PREVENTED YOU FROM --
LISA PETERSON: CORRECT.
LISA PETERSON: OTHER THAN THE FEAR OF BEING UNINVITED TO INVEST.
MR. WADE: AND YOU COULD PROBABLY CALL OTHER PEOPLE AND THERANOS WOULD NEVER KNOW ABOUT IT; RIGHT? YOU DO THAT ALL OF THE TIME IN INVESTMENTS, DON'T YOU?
LISA PETERSON: YES, BUT THAT'S NOT WHAT WE DID HERE.
LISA PETERSON: CORRECT, BUT THAT'S NOT WHAT WE DID HERE.
MR. WADE: BACK TO 2015. MR. LEACH FOCUSSED YOU ON THE DISCUSSION OF THE WALGREENS AND THE ROLLOUT. DO YOU SEE THAT? AND THAT SAYS THE PROJECTIONS WERE BASED ON 900 STORES. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: YES, FOR 2015.
MR. WADE: WE'LL ASK SOME QUESTIONS ABOUT THAT IN A SECOND. YOU UNDERSTOOD THOSE WERE PROJECTIONS; RIGHT?
LISA PETERSON: YES, AND FOR CONTRACTS, WE WERE TOLD THAT THERE WERE CONTRACTS THAT SUBSTANTIATED WHAT THE PROJECTION SAID.
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
LISA PETERSON: FORTY OR FORTY-TWO.
MR. WADE: OKAY. AND UNDER THE RISKS, DO YOU SEE THE RISK THAT IS FOCUSSED ON THERE IS THE RISK OF AN EXECUTION; RIGHT?
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
MR. WADE: AND TO GO FROM, WHATEVER, 42 STORES YOU SAID, TO 900 STORES IN A YEAR IS A LOT; CORRECT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND SO THE PRIMARY RISK THAT MS. HOLMES ALERTED YOU TO WAS THE RISK OF BEING ABLE TO EXECUTE ON THAT AND GROW AT THAT RATE; CORRECT?
LISA PETERSON: YES.
MR. WADE: OKAY. LET'S GO TO THE SECOND PAGE. THIS SETS FORTH THE GOALS FOR OCTOBER 14TH. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: PART OF IT.
LISA PETERSON: THIS WAS OUR GOALS FOR THE OCTOBER 14TH. AND IN HERS, SHE MADE IT VERY SPECIFIC THAT SHE WANTED TO GET TO KNOW THE PEOPLE WHO ARE MAKING THE INVESTMENT.
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
MR. WADE: AND BEFORE THEY DID THAT, THEY WANTED TO GET TO KNOW ELIZABETH AND OTHER PEOPLE AT THERANOS; RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: AND SO ONE OF THE CORE PRINCIPLES IN GOING OUT THERE WAS SO THAT THERE COULD BE INTERACTION THAT WOULD ALLOW PEOPLE TO GET COMFORTABLE WITH ONE ANOTHER; RIGHT?
LISA PETERSON: ON BOTH SIDES, CORRECT.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND, IN FACT, ULTIMATELY LATER WHEN, WHEN YOU WENT OUT THERE, THERE WAS A LOT OF DISCUSSION GOING BOTH WAYS ABOUT THE PHILOSOPHIES OF BOTH SIDES; RIGHT?
LISA PETERSON: CORRECT.
LISA PETERSON: DOUG.
MR. WADE: DOUG, ABOUT THE BUSINESS RELATIONSHIPS THAT THE COMPANY HAD HAD AND ITS PHILOSOPHY AND APPROACH TO MAKING INVESTMENTS; RIGHT?
LISA PETERSON: YES.
MR. WADE: AND HOW HE GREW THE AMWAY BUSINESS AND HIS BUSINESS PHILOSOPHY FROM A MANAGEMENT PERSPECTIVE; RIGHT?
LISA PETERSON: YES, THAT WAS DISCUSSED.
MR. WADE: RIGHT. AND THERE WERE SIMILAR DISCUSSIONS ABOUT MS. HOLMES'S VISION, AND SHE HAD A LONG-TERM VIEW OF THE BUSINESS; CORRECT?
LISA PETERSON: CORRECT.
MR. WADE: AND HOW SHE WANTED TO SEE THIS OVER THE LONG TERM IN ORDER TO HAVE THE TYPE OF IMPACT IN HEALTH CARE THAT SHE WANTED TO HAVE; RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: AND MR. TUBERGEN ACTUALLY SPECIFICALLY SAID IN THIS PRE-CALL THAT IT NEEDED TO BE -- IT NEEDED TO BE UNDERSTOOD THAT THESE WEREN'T HIGHLY SCIENTIFIC PEOPLE, RIGHT, THE DEVOS FAMILY, AND THIS NEEDED TO BE KEPT AT A LEVEL THAT WAS NOT A TECHNICAL MEETING, BUT MORE OF A RELATIONSHIP MEETING; RIGHT?
LISA PETERSON: I DON'T RECALL HIM SAYING THAT, BUT, YES, I CAN -- NONE OF US WERE SCIENTISTS, SO KEEPING IT AT A LEVEL THAT WE ALL COULD UNDERSTAND WAS IMPORTANT.
LISA PETERSON: WE DID NOT ASK FOR THAT, NO.
MR. WADE: OKAY. AND YOU DIDN'T BRING IN A CONSULTANT WHO HAS GREATER EXPERTISE IN THIS AREA TO LOOK AT THE TECHNOLOGY OR THE DATA, DID YOU?
MR. WADE: AND YOU DIDN'T BRING IN A REGULATORY EXPERT TO LOOK AT THE REGULATORY ISSUES THAT WERE PRESENT IN CONNECTION WITH THIS INVESTMENT; RIGHT?
MR. WADE: OKAY. YOU DIDN'T BRING IN A LAWYER WHO IS WITH EXPERTISE WHO COULD MAKE THOSE KINDS OF JUDGMENTS; RIGHT?
LISA PETERSON: NO. WE WERE RELYING ON WHAT WE WERE TOLD BY THEM ON THE ACCURACY OF THE ANALYZER.
LISA PETERSON: NO. BUT THEY ALSO SAID THAT THEY DIDN'T NEED FDA REGULATORY APPROVAL FROM THE FDA TO DO IT.
MR. WADE: I UNDERSTAND. THAT WASN'T MY QUESTION. MY QUESTION WAS, NO ONE SAID THAT YOU, YOU COULDN'T HIRE ANY OF THOSE EXPERTS TO COME IN AND HELP YOU UNDERSTAND THE TECHNICAL ISSUES; RIGHT?
LISA PETERSON: NO ONE DID, BUT WE DIDN'T KNOW WHY WE WOULD NEED THAT.
LISA PETERSON: NO, BUT THEY WERE TELLING US THAT IT WORKED.
MR. WADE: THAT WASN'T MY QUESTION. MY QUESTION WAS WHETHER YOU UNDERSTOOD THE FDA AND CMS TECHNICAL ISSUES. DID YOU?
LISA PETERSON: WE UNDERSTOOD WHAT THEY TOLD US.
LISA PETERSON: CORRECT.
MR. WADE: -- FROM BRINGING IN SOMEONE WHO HAS EXPERTISE TO GIVE ADDITIONAL PERSPECTIVE ON THAT; CORRECT?
LISA PETERSON: WE DIDN'T THINK THAT WE NEEDED IT.
MR. WADE: OKAY. YOU THEN TALKED ABOUT THE RDV INVESTMENT PHILOSOPHY THERE AND HOW IT WAS A GOAL IN THE MEETING. THIS IS KIND OF ONE OF THE ISSUES THAT YOU WERE TALKING ABOUT; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: THEY'VE NEVER GONE ON AN INVESTMENT WITH ME.
LISA PETERSON: YES.
LISA PETERSON: NO. NO. THIS WAS AN INVESTMENT AND ONE THAT CAME WITH IT, WE WANTED TO MAKE SURE -- WITH ANYONE WE INVEST WITH, WE WANT TO HAVE A GOOD PARTNERSHIP, LONG-TERM PARTNERSHIP WITH ANYONE WE INVEST WITH. THIS WASN'T ANY DIFFERENT THAN ANYTHING ELSE.
MR. WADE: UNDERSTOOD. YOU SEE THE REFERENCE THERE TO THE IMPORTANCE OF THE RELATIONSHIP GOING FORWARD. DO YOU SEE THAT?
LISA PETERSON: IT IS.
LISA PETERSON: IT IS. BUT THAT WASN'T UNIQUE TO THIS DEAL.
MR. WADE: OKAY. I WAS JUST ASKING WHETHER THAT WAS PART OF THE DISCUSSION GOING INTO THE MEETING.
LISA PETERSON: CORRECT. IT JUST WASN'T UNIQUE TO THIS DEAL.
MR. WADE: OKAY. LET'S GO TO THE NEXT PAGE, OR THE NEXT PIECE. YEAH, LET'S GET THE REST OF IT. OKAY. AND THIS IS THE BALANCE OF THE DISCUSSION THERE; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: WE TALKED ABOUT WHAT THEY MIGHT RAISE IN THIS FUND RAISING, YES.
LISA PETERSON: YES.
LISA PETERSON: WE ALWAYS KIND OF ASKED SIZING, WHAT MAKES THE MOST SENSE, AND SO JERRY HAD BROUGHT UP 50 MILLION. IS THAT A GOOD NUMBER FOR US TO CONSIDER? WE ALWAYS WANT TO KNOW WHAT WE'RE TO CONSIDER IN AN INVESTMENT.
MR. WADE: UNDERSTOOD. AND A LOT OF THE ISSUES THAT YOU TALKED ABOUT IN YOUR MEMO, WHICH WE'RE GOING TO TALK ABOUT IN A LITTLE BIT ABOUT THE PARTICULARS, AREN'T REFERENCED IN YOUR NOTES ANYWHERE; RIGHT?
LISA PETERSON: THIS WAS JUST MY SHORTHAND FROM THE CALL. EVERYTHING ELSE THAT WE TALKED ABOUT IS REFERENCED IN THE MEMO THAT WENT TO THE FAMILY.
MR. WADE: OKAY. SO, SO THERE WAS A LOT OF STUFF THAT HAPPENED ON THIS CALL THAT YOU DIDN'T WRITE DOWN IN YOUR NOTES; IS THAT YOUR --
LISA PETERSON: YES, THIS WAS SHORTHAND OF ALL OF THE POINTS, THE QUESTIONS THAT WE HAD AND THE ANSWERS, AND THEN THERE'S -- THERE WAS MORE. AND ALSO I INCORPORATED IN SOME OF THE STUFF THAT I READ FROM THE DUE DILIGENCE BINDERS.
MR. WADE: NO. I UNDERSTAND THAT. WE'LL TALK ABOUT THE INCORPORATION OF THE DUE DILIGENCE BINDERS. BUT WE'RE TALKING ABOUT A 30 MINUTE CALL HERE; RIGHT?
LISA PETERSON: UH-HUH.
LISA PETERSON: YEAH, BUT THIS IS FAIRLY SHORTHAND FOR -- THIS ISN'T EXACTLY WHAT WAS SAID.
MR. WADE: OKAY. AND ALL OF THE TECHNICAL STUFF THAT RELATES TO YOUR MEMO, YOU DIDN'T PUT THAT IN THE NOTES; IS THAT RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. LET'S TAKE A LOOK AT YOUR MEMO. I BELIEVE IT'S IN YOUR -- THE GOVERNMENT BINDER AT 2073.
LISA PETERSON: YOUR BINDER OR THIS BINDER?
LISA PETERSON: I'M IN THE BLACK BINDER.
MR. WADE: I THINK IT'S IN BOTH, BUT I HAPPEN TO BE LOOKING AT THE GOVERNMENT VERSION 2073, WHICH I THINK IS IN EVIDENCE. DO YOU HAVE THAT? DO YOU SEE THAT IN FRONT OF YOU?
JUDGE DAVILA: THAT'S ALSO IN YOUR BINDER AS WELL, 2073.
LISA PETERSON: OKAY. YES.
BY MR. WADE:
MR. WADE: AND I JUST WANT TO MAKE SURE. THERE'S A REFERENCE HERE TO -- THIS IS AN OVERVIEW FOR THE MEMO -- FOR THE MEETING IN ADVANCE; CORRECT?
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
MR. WADE: AND THEN THE MATERIALS THAT YOU REFERENCED IN THERE, IT'S YOUR TESTIMONY THAT ALL OF THOSE MATERIALS WERE PRINCIPALLY FROM THE 30 MINUTE CONVERSATION WITH MS. HOLMES AND THE BINDERS THAT YOU WERE SENT?
LISA PETERSON: AND THE BINDERS, YES.
LISA PETERSON: OTHER THAN THE SKEPTIC PARTS THAT I PUT IN THE BACK OF THIS --
LISA PETERSON: -- WHICH I READ ONLINE.
MR. WADE: OKAY. ISN'T IT, ISN'T IT ACTUALLY THE CASE THAT A LOT OF THE MATERIAL IN THERE CAME DIRECTLY OUT OF THE "FORTUNE" ARTICLE?
LISA PETERSON: NO. A LOT OF THIS CAME OUT OF THE BINDERS, AND SOME OF IT COULD HAVE COME OUT OF WHAT I READ, YES.
MR. WADE: OKAY. YOU RECEIVED THAT "FORTUNE" ARTICLE THAT WAS SENT FROM MR. MOSLEY TO MR. TUBERGEN; CORRECT?
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
MR. WADE: OKAY. AND I KNOW YOU'VE TESTIFIED THAT YOU -- I KNOW THAT YOU'VE TESTIFIED THAT YOU RELIED ON THE BINDER MATERIALS, BUT ISN'T IT TRUE THAT A LOT OF THE ITEMS IN YOUR MEMO ACTUALLY CAME ALMOST DIRECTLY FROM THE "FORTUNE" ARTICLE?
LISA PETERSON: THAT'S NOT MY RECOLLECTION.
MR. WADE: OKAY. LET'S TAKE A LOOK. WHY DON'T -- I'LL -- LET'S START WITH PAGE 6 OF YOUR MEMO. DO YOU SEE THAT? THAT'S THE APPENDIX?
LISA PETERSON: YES.
LISA PETERSON: A LOT OF THE APPENDIX -- THAT'S WHY IT SAYS STATISTICS AND NOTEWORTHY ITEMS. A LOT OF THAT WAS WHATEVER I COULD FIND.
MR. WADE: YEAH. DO YOU RECALL IN YOUR TESTIMONY WHERE YOU WERE GOING THROUGH AND MR. LEACH WAS ASKING YOU, WAS THAT BASED UPON THE BINDER AND THE MATERIALS THAT MS. HOLMES GAVE YOU? AND YOU SAID YES, YES, YES, YES, EXCEPT FOR THE LAST ONE. DO YOU RECALL THAT?
LISA PETERSON: MUCH OF THIS WAS IN THE BINDER, YES.
LISA PETERSON: IT WAS IN MULTIPLE PLACES, YES.
MR. WADE: OKAY. WELL, DID YOU TAKE THINGS RIGHT OUT OF THE "FORTUNE" ARTICLE AND PUT THEM INTO THE MEMO? DO YOU REMEMBER?
LISA PETERSON: I MIGHT HAVE, YES.
MR. WADE: OKAY. LET'S TAKE A LOOK AT THE 11TH PARAGRAPH, OKAY? OR THE 11TH NUMBER WHICH STARTS, "THERANOS USES THEIR OWN ANALYZER EQUIPMENT." DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: OKAY. AND IF -- CAN WE DO A SPLIT SCREEN? LET'S DO A SPLIT SCREEN AND PULL UP THE "FORTUNE" ARTICLE. I'LL DO IT ON THE SCREEN, BUT YOU'RE WELCOME TO REFERENCE THIS AT ANY TIME. THE "FORTUNE" ARTICLE IS 1944, OKAY? OKAY. LET'S LOOK AT PAGE -- LET'S LOOK AT PAGE 4, AND LET'S BLOW UP THE PARAGRAPH WITH THE P. I'M GOING TO GIVE YOU A MINUTE TO LOOK AT THAT. THAT BULLET IS LIFTED RIGHT FROM THE "FORTUNE" ARTICLE, CORRECT, THAT YOU GOT FROM MR. MOSLEY?
LISA PETERSON: YES, UH-HUH.
LISA PETERSON: BUT WE ALSO DISCUSSED THIS WITH ELIZABETH.
MR. WADE: LET'S GO TO, LET'S GO TO PAGE 5 OF THE ARTICLE. LET'S LOOK AT THE PARAGRAPH -- THE TWO PARAGRAPHS ON THE RIGHT COLUMN, "IMPORTANTLY" AND "IT TAKES." LET'S BLOW THOSE UP. AND LET'S GO TO THE MEMO AND BLOW UP THE NEXT BULLET THERE, 12. OKAY. TAKE A MINUTE TO REVIEW THOSE.
(PAUSE IN PROCEEDINGS.)
LISA PETERSON: UH-HUH.
BY MR. WADE:
LISA PETERSON: NOT EXACTLY. AND WE TALKED ABOUT -- WE TALKED ABOUT HER USING THE MACHINE IN THE MILITARY AND USING IT -- THEY WERE WORKING ON EBOLA AT THE TIME. THERE WAS A LOT OF DISCUSSION AROUND WHAT THEY WERE DOING WITH THE GOVERNMENT.
LISA PETERSON: YES. THERE WAS, THERE WAS -- WE WERE TALKING ABOUT WHERE THEY WERE USING IT AND IS IT ACCURATE.
MR. WADE: IN THE 30 MINUTE CALL? I'M JUST TRYING TO UNDERSTAND WHERE YOU'RE GETTING THIS KNOWLEDGE.
LISA PETERSON: I DON'T RECALL WHICH ONE EXACTLY, BUT WE -- I KNOW WE TALKED ABOUT IT AT LENGTH IN THE MEETING ON THE 14TH.
MR. WADE: OKAY. SO TO THE EXTENT THAT THERE ARE LANGUAGE SIMILARITIES BETWEEN THESE TWO PARAGRAPHS, THAT'S JUST A COINCIDENCE? OR DID YOU LIFT IT FROM THE "FORTUNE" ARTICLE?
LISA PETERSON: I DON'T RECALL.
MR. WADE: OKAY. LET'S FOCUS ON THAT MILITARY SENTENCE THAT MAKES IT -- LET'S HIGHLIGHT THE SENTENCE ON THE RIGHT THAT SAYS "THAT MAKES IT POSSIBLE TO IMAGINE ONE DAY." LET'S HIGHLIGHT THE REST OF THAT. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
MR. WADE: AND THEY WERE DOING A LOT OF RESEARCH AND HAVING A LOT OF MEETINGS AND TRYING TO DO THAT, WEREN'T THEY?
LISA PETERSON: CORRECT. BUT THAT'S WHY WE ASKED ABOUT IT WHEN WE WENT THERE ON THE 14TH OF WHAT IS GOING ON? WHERE ARE YOU USING IT? AND WE TALKED ABOUT IT BEING USED WITH THE GOVERNMENT.
LISA PETERSON: BOTH.
LISA PETERSON: WE DEFINITELY TALKED ABOUT -- WE DEFINITELY ASKED THE QUESTION WHEN WE WERE THERE AROUND THIS WHOLE CONVERSATION WHETHER IT WAS BEING USED. WE WERE ASKING ABOUT WHETHER THAT WAS TRUE OR NOT.
LISA PETERSON: ON THE 14TH.
LISA PETERSON: CORRECT. AND THAT'S WHAT IT SAYS. IT SAYS MAKING IT POSSIBLE TO PLACE A THERANOS LAB. I DIDN'T SAY THAT THEY WERE.
LISA PETERSON: BUT THIS WAS SOMETHING THAT WE ASKED ABOUT.
MR. WADE: MY APOLOGIES FOR INTERRUPTING. I BELIEVE IN YOUR DIRECT TESTIMONY YOU DID SAY THAT THEY WERE, BUT THAT'S NOT WHAT THE ARTICLE SAYS; RIGHT?
LISA PETERSON: I'M MAYBE MIXING THE CALL WITH THE MEETING.
LISA PETERSON: CORRECT, AND SO DO MY NOTES.
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND, IN FACT, THEY TOLD YOU IN THE MEETING THAT THEY WERE PAUSING THEIR WORK WITH THE MILITARY AND PHARMA AND FOCUSSING ALL OF THEIR EFFORTS ON RETAIL; CORRECT?
LISA PETERSON: I DON'T RECALL THEM SAYING THAT THEY PAUSED IT.
LISA PETERSON: I DON'T RECALL THEM SAYING THAT THEY PAUSED DOING THAT. THEY WERE FOCUSSING THEIR EFFORTS ON WALGREENS AND MOVING FORWARD. THAT WAS THE DIRECTION THAT THEY WERE GOING TO TAKE. BUT IT WAS IMPORTANT TO US WHAT THEY WERE DOING HISTORICALLY, WHICH WAS WORKING WITH THE MILITARY AND WORKING WITH PHARMACEUTICAL COMPANIES. THAT WAS IMPORTANT TO VALIDATE THE ACCURACY OF THE MACHINE AND THEIR TESTING. ALL OF THAT WAS IMPORTANT.
MR. WADE: UNDERSTOOD. LET ME GO TO THE NEXT BULLET POINT. THIS PARAGRAPH IS FROM THE "FORTUNE" ARTICLE AS WELL; CORRECT?
LISA PETERSON: UH-HUH.
LISA PETERSON: YES.
MR. WADE: OKAY. ON YOUR DIRECT TESTIMONY YOU SAID IT WAS FROM MS. HOLMES AND IN THE MEETING, RIGHT? BUT IT WAS ACTUALLY ALMOST VERBATIM FROM THE "FORTUNE" ARTICLE; RIGHT?
LISA PETERSON: NO. I SAID THAT SOME OF THE SKEPTICISM I PULLED FROM OUT OF THE INTERNET, AND THAT'S WHAT THIS IS, INCUMBENT PLAYERS CRITICIZED THERANOS. THIS DIDN'T COME FROM THERANOS SAYING THIS. I WAS TRYING TO GIVE THE FAMILY MEMBERS AN IDEA OF WHAT THE MARKET WAS SAYING ABOUT THEM, WHICH PART OF IT DID COME FROM ARTICLES THAT I HAD READ.
LISA PETERSON: MORE THAN JUST THIS ONE.
LISA PETERSON: CORRECT.
MR. WADE: AND THE NEXT PARAGRAPH IS FROM THE "FORTUNE" ARTICLE THAT YOU GOT FROM MR. MOSLEY AS WELL; CORRECT?
LISA PETERSON: CORRECT.
LISA PETERSON: I DO RECALL THE BOTTOM PART OF THAT AND I -- WE DID NOT HEAR FROM HER WHAT HER SKEPTICS WERE. YOU KNOW, THAT WAS STUFF THAT I WAS PULLING OUT OF THE INTERNET IN CERTAIN THINGS LIKE THIS AND OTHER THINGS THAT I HAD READ, YES.
MR. WADE: OKAY. AND YOU MENTIONED THE -- YOU MENTIONED THAT THE WALGREENS RELATIONSHIP WAS IMPORTANT TO --
LISA PETERSON: VERY.
LISA PETERSON: YES.
MR. WADE: LET'S GO TO PAGE 5 OF YOUR MEMO AND HIGHLIGHT THE FIRST HALF OF THAT DOWN TO "ALLIANCE BOOTS." YOU SEE THAT'S FROM YOUR MEMO; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND THAT'S BECAUSE YOU GOT THE WALGREENS INFORMATION FROM THE "FORTUNE" ARTICLE; RIGHT?
LISA PETERSON: IT COULD BE, YES. THE 40 CAME FROM THE MEETING TOGETHER.
MR. WADE: AND IF WE JUST GO DOWN TO THE KEY OBJECTIVES, IF WE JUST GO BACK TO YOUR MEMO, THE BOTTOM, WE CAN BRING THE "FORTUNE" ARTICLE DOWN. THESE WERE WHAT YOU IDENTIFIED AS THE KEY OBJECTIVES FOR THE MEETING IN YOUR MEMO?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: CAN I SAY ONE OTHER THING? THIS IS THERANOS --
MR. WADE: THERE'S NO QUESTION PENDING. SO THE WAY THIS GENERALLY WORKS IS THAT THE GOVERNMENT CAN DO FOLLOWUP WITH YOU, BUT --
JUDGE DAVILA: HE'LL ASK YOU ANOTHER QUESTION.
LISA PETERSON: OKAY.
BY MR. WADE:
MR. WADE: THE -- MR. TUBERGEN -- YOU ASKED MR. TUBERGEN IN ADVANCE WHETHER THERE WAS ANY SORT OF MODELING OR ANYTHING THAT SHOULD BE DONE IN CONNECTION WITH THE THERANOS INVESTMENT; CORRECT?
LISA PETERSON: CORRECT.
LISA PETERSON: HE JUST SAID THAT IT WASN'T NECESSARY FOR THIS.
MR. WADE: OKAY. BUT FINANCIAL MODELING IS SOMETHING THAT IS FREQUENTLY DONE IN DUE DILIGENCE; RIGHT?
LISA PETERSON: IT'S -- YES.
LISA PETERSON: HE SAID WE WERE RELYING ON WHAT WE WERE GIVEN BY THE COMPANY.
MR. WADE: RIGHT. AND YOU ACTUALLY RAISED A COUPLE OF POTENTIAL TECHNICAL PEOPLE THAT YOU COULD TALK TO AS WELL. DO YOU RECALL THAT?
LISA PETERSON: I DON'T RECALL WHAT YOU MEAN.
MR. WADE: WERE YOU AWARE THAT MEMBERS OF THE DEVOS FAMILY RAISED WITH MR. TUBERGEN THAT THERE MIGHT BE SOME TECHNICAL PEOPLE WHO COULD BE USED TO CONSULT ON THIS RELATIONSHIP?
LISA PETERSON: I DON'T --
LISA PETERSON: -- KNOW WHAT YOU'RE REFERRING TO.
LISA PETERSON: YES.
LISA PETERSON: OKAY.
LISA PETERSON: YES.
MR. WADE: OKAY. I BELIEVE IN YOUR PRIOR TESTIMONY YOU SAID THERE WERE ABOUT A FOOT OF MATERIALS.
LISA PETERSON: YES.
LISA PETERSON: I CAN'T RECALL ALL OF THE SPECIFICS OF THAT, BUT IT WAS VERY MUCH -- ONE BINDER WAS VERY MUCH THERANOS AND THE COMPANY AND WHAT IT DOES AND WHAT IT HAD TO OFFER, AND THE SECOND BINDER WAS VERY CLINICAL.
LISA PETERSON: YES, YES.
LISA PETERSON: YES.
LISA PETERSON: THAT'S WHAT I RECALL.
LISA PETERSON: I FLIPPED THROUGH ALL OF THE PAGES OF BOTH BINDERS AND THE KEY THINGS THAT WERE IMPORTANT TO US WAS THE WORK WITH THE PHARMACEUTICAL COMPANIES AND THE FINANCIALS AND THE CONTRACTS AND THE MANY TIMES THAT IT STATED THAT -- THE ACCURACY OF THE TEST.
MR. WADE: YEAH, I UNDERSTAND YOUR TESTIMONY. BUT YOU ACTUALLY DIDN'T MAKE THE INVESTMENT DECISION; RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. THE -- LET'S LOOK AT THE MATERIALS YOU WERE SENT. IT'S 4858. AND YOU'RE THE ONLY PERSON AT RDV WHO LOOKED AT THESE MATERIALS; RIGHT?
LISA PETERSON: I DON'T KNOW.
LISA PETERSON: I'M NOT AWARE, NO.
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND DO YOU RECALL PREVIOUSLY MAKING STATEMENTS TO THE EFFECT OF YOU'RE THE ONLY ONE WHO DID A DETAILED REVIEW OF THE BINDERS?
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND WITHIN THESE MATERIALS -- SO THEY SENT THE TWO BINDERS. DID YOU ASK IN FOLLOWUP FOR ANY ADDITIONAL INFORMATION IN WRITING?
LISA PETERSON: WE WERE GOING TO GO AND VISIT THEM, SO WE DIDN'T THINK IT WAS NECESSARY TO ASK FOR MORE.
MR. WADE: I UNDERSTAND. BUT MY QUESTION WAS WHETHER -- YOU UNDERSTAND THAT IN A TYPICAL DUE DILIGENCE PROCESS, FREQUENTLY THERE ARE LISTS OF REQUESTS; RIGHT?
LISA PETERSON: UH-HUH.
MR. WADE: OKAY. AND THEN YOU SEND THAT TO THE OTHER SIDE, RIGHT, IN A TYPICAL DUE DILIGENCE PROCESS; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: WE WERE GOING TO SEE THEM PERSONALLY AND SPEND A DAY THERE, SO WE WERE GOING TO HANDLE IT THEN.
LISA PETERSON: NO, WE DID NOT ASK FOR MORE.
MR. WADE: OKAY. AND IS IT YOUR TESTIMONY THAT YOU DID REVIEW IN DETAIL ALL OF THE MATERIAL WITHIN THE SUBGROUP?
LISA PETERSON: SUBGROUP?
LISA PETERSON: I HAVE A 4859 AND 4734.
LISA PETERSON: WHAT NUMBER?
LISA PETERSON: YES. AND ALL OF THE HIGHLIGHTING WAS DONE EARLY.
LISA PETERSON: YES.
MR. WADE: OKAY. DO YOU SEE IN THE BACK THERE'S A VERY DETAILED LIST OF INTELLECTUAL PROPERTY MATERIALS?
LISA PETERSON: YOU'LL HAVE TO GIVE ME A PAGE NUMBER.
MR. WADE: SURE. I BELIEVE IT'S 12805 IN THE BOTTOM RIGHT CORNER, OR ON THE EXHIBIT IN THE MIDDLE IT'S 133.
LISA PETERSON: YES.
MR. WADE: OKAY. AND IN CONNECTION WITH THIS, THE GOVERNMENT -- OR, I'M SORRY -- THE COMPANY SENT YOU A LIST OF ALL OF THEIR INTELLECTUAL PROPERTY MATERIALS; CORRECT?
LISA PETERSON: YES.
MR. WADE: AND DID YOU DO -- DID YOU REVIEW THIS AND LOOK AT THE PATENTS THAT THE COMPANY HAD FILED?
LISA PETERSON: WE, WE KNEW THAT THEY HAD PATENTS. I CAN'T SAY THAT I REVIEWED THEM OR KNEW WHAT THE PATENTS WERE.
LISA PETERSON: THIS LENDS CREDIBILITY TO THE FACT THAT IT WORKS. YES, I FLIPPED THROUGH EVERYTHING.
LISA PETERSON: BUT I'M NOT A SCIENTIST, SO I DON'T KNOW EXACTLY WHAT SOME OF THESE ARE SAYING. BUT I DO -- I CAN FIGURE OUT WHETHER THINGS ARE LENDING CREDIBILITY TO WHAT THEY WERE TELLING US.
MR. WADE: NO, I UNDERSTAND. I JUST -- YOU UNDERSTAND THAT OFTEN IN DUE DILIGENCE ON TECHNOLOGY COMPANIES THAT PEOPLE DO PRETTY DETAILED REVIEWS OF INTELLECTUAL PROPERTY PORTFOLIOS; RIGHT?
LISA PETERSON: OKAY.
LISA PETERSON: YES.
MR. WADE: AND YOU DIDN'T, BY YOURSELF, LOOK UP ANY OF THESE MATERIALS IN A PUBLIC RECORD OR ASK FOR ANY INFORMATION RELATING TO THESE MATERIALS?
LISA PETERSON: NO. WE TRUSTED WHAT WE READ.
LISA PETERSON: NO, NO.
MR. WADE: -- SOME OF THESE PATENTS AND APPLICATIONS RELATE TO THE USE OF SMALL SAMPLES ON COMMERCIAL DEVICES.
LISA PETERSON: NO. WHAT WAS RELEVANT TO US WAS THAT THEY SAID THAT'S WHAT THEY WERE DOING. AGAIN, IT GOES BACK TO THE KEY THINGS OF WHAT WE WERE UNDERWRITING, WHICH WERE THE FINANCIALS, THE CONTRACTS, AND THE VALIDITY OF THE ANALYZER WORKING BY ALL THE PHARMACEUTICAL COMPANIES AND THE GOVERNMENT.
MR. WADE: I'M GLAD YOU BROUGHT UP THE CONTRACTS. WHAT WAS YOUR UNDERSTANDING OF THE WALGREENS CONTRACT?
LISA PETERSON: THAT IT WAS BEGINNING TO LAUNCH AND ROLL OUT IN ADDITIONAL LOCATIONS. THERE WAS NO SUGGESTION THAT THERE WAS ANYTHING WRONG WITH THE WALGREENS CONTRACTS.
LISA PETERSON: AND THAT SAFEWAY WAS GOING TO ROLL OUT AS WELL.
LISA PETERSON: YES.
LISA PETERSON: WE TALKED ABOUT THE WALGREENS RELATIONSHIP AND IT WAS ALL VERY POSITIVE.
LISA PETERSON: I DON'T RECALL THAT SPECIFICALLY.
LISA PETERSON: IN GENERAL. I MEAN, WE TALKED ABOUT, WE ASKED ABOUT WHAT -- AGAIN, AT THE MEETING, WE WANTED TO KNOW WHERE THEY WERE GOING TO GO NEXT, WHAT -- WERE THEY GOING TO BIG CITIES AND HOW MANY CITIES AND HOW MANY LOCATIONS WERE THEY GOING TO OPEN IN THE NEXT YEAR OR TWO? AND THAT'S WHAT THE DISCUSSION WAS AROUND.
MR. WADE: WHAT WAS YOUR UNDERSTANDING OF THE PHASE I AND PHASE II OF THE WALGREENS RELATIONSHIP?
LISA PETERSON: I DON'T KNOW WHAT YOU MEAN BY PHASE I AND PHASE II OF THE WALGREENS RELATIONSHIP. THEY WERE IN 40 STORES AT THE TIME, AND THEY WERE GOING TO ROLL OUT TO 900 THE FOLLOWING YEAR.
LISA PETERSON: AND THEY WERE GOING TO ROLL INTO I WANT TO SAY FOUR METROPOLITAN AREAS FIRST, AND THEY WERE VERY SPECIFIC ABOUT HOW MANY LOCATIONS -- HOW MANY METROPOLITAN AREAS THEY WERE GOING TO GO IN EACH YEAR.
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
LISA PETERSON: THEY HAD A ROLLOUT PLAN.
LISA PETERSON: YES.
MR. WADE: BUT MY QUESTION WAS MORE, DO YOU RECALL ANY DISCUSSION OR ASKING ANY QUESTIONS ABOUT TWO DIFFERENT PHASES OF THE WALGREENS RELATIONSHIP THAT WAS SET FORTH IN WALGREENS CONTRACTS?
LISA PETERSON: THAT'S NOT HOW IT WAS CHARACTERIZED TO US.
MR. WADE: OKAY. THE DOCUMENT JUST PRIOR TO THIS IS THE PFIZER THERANOS DOCUMENT THAT IF YOU LOOK ON PAGE --
LISA PETERSON: YES.
MR. WADE: -- 104. ACTUALLY, IF YOU CAN BRING UP 109, 109 OF THE EXHIBIT, WHICH IS PAGE 6 OF THIS DOCUMENT.
(PAUSE IN PROCEEDINGS.)
BY MR. WADE:
LISA PETERSON: YES.
MR. WADE: OKAY. AND THIS SETS FORTH THE DETAILS OF THE RELATIONSHIP, DO YOU SEE THAT, OF THE PROJECT THAT THEY WERE DOING?
LISA PETERSON: WHERE ARE YOU LOOKING?
LISA PETERSON: YES, ON THE PAGE.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND IT THEN TALKS ABOUT HOW THREE ASSAYS WERE PERFORMED SIMULTANEOUSLY IN MULTIPLEX. DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: IT MEANS THAT AT THE TIME THEY ARE RUNNING THE TESTS, THAT THEY'RE RUNNING THREE DIFFERENT TESTS AT THE SAME TIME. DID YOU UNDERSTAND THAT AT THE TIME?
LISA PETERSON: NO. THE PAGES THAT WE WERE FOCUSSED IN ON ARE THE ONES THAT SAY THAT THE THERANOS SYSTEM PERFORMED WITH SUPERIOR PERFORMANCE TO REFERENCE ASSAYS WHILE RUNNING IN A COMPLEX AMBULATORY ENVIRONMENT AND THINGS LIKE THAT. WE WERE MUCH MORE AT THE SUMMARY LEVEL THAN GOING THROUGH AND MAKING SURE THAT THE PROCESS THAT THEY USED OR WHAT THEY WERE DOING WAS -- WE DIDN'T NEED TO UNDERSTAND THE PROCESS THAT THEY WERE USING, JUST THE OUTCOME.
LISA PETERSON: THIS, THIS WAS -- THIS DEFINITELY TOLD US THAT, THAT PFIZER WAS USING THEIR MACHINES AND IT WAS PERFORMING EXCEPTIONALLY WELL IN THEIR TESTS.
MR. WADE: DID YOU UNDERSTAND THAT PFIZER -- THAT THE MACHINES WERE DEPLOYED IN THE HOME OF A NUMBER OF PATIENTS?
LISA PETERSON: I DON'T RECALL THAT. IT WAS A LONG TIME AGO.
LISA PETERSON: THE SPECIFICS OF THE REPORT.
MR. WADE: RIGHT. YOU JUST RECALL THE SPECIFIC PARTS THAT THE GOVERNMENT POINTED YOU TO? IS THAT THE LIMIT OF YOUR RECOLLECTION?
LISA PETERSON: NO, NO. I COMPLETELY REMEMBER WHEN WE WERE DOING THIS THAT THAT -- THE TAKE AWAY FROM THIS IS THAT LARGE PHARMACEUTICAL BUSINESSES, COMPANIES, WERE USING THEIR ANALYZER AND THEY WEREN'T HAVING ANY ISSUES WITH IT.
LISA PETERSON: THAT WAS THE TAKE AWAY.
MR. WADE: I UNDERSTAND. BUT YOU TALKED ABOUT HOW IT VALIDATED THE TECHNOLOGY, AND TO VALIDATE THE TECHNOLOGY, YOU KIND OF NEED TO KNOW WHAT HAPPENED AND HOW IT WORKED; RIGHT?
LISA PETERSON: NO. I JUST NEED TO KNOW THAT THEY SAID IT WORKED.
MR. WADE: OKAY. AND YOU UNDERSTOOD THAT THEY WERE TESTING THIS IN CONNECTION WITH THE USE OF -- THAT THIS WAS A THERANOS DEVICE; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: THAT -- I DON'T RECALL THAT. I DON'T RECALL EXACTLY. I JUST KNOW THAT THEY WERE USING THEIR ANALYZERS IN CLINICAL TRIALS.
MR. WADE: OKAY. AND IF YOU GO TO PAGE 8 -- I'M SORRY, ONE MORE PAGE. DO YOU HAVE ANY FAMILIARITY WITH CHARTS OF THIS KIND?
MR. WADE: OKAY. THIS IS A MEASURE OF ACCURACY. DO YOU HAVE ANY -- WAS THERE ANY DISCUSSION OF THE R SQUARED OF THIS PARTICULAR ASSAY?
MR. WADE: OKAY. LET'S GO BACK TO THE START OF THE DOCUMENT. IF WE GO TO -- LET'S GO TO PAGE 3. OKAY. HERE -- DO YOU SEE THE REFERENCE TO THERANOS'S PROPRIETARY PATENTED TECHNOLOGY?
LISA PETERSON: YES.
LISA PETERSON: THEY -- I'M SORRY?
LISA PETERSON: YES.
MR. WADE: OKAY. WHAT DO YOU UNDERSTAND TO BE THE BREADTH OF THERANOS'S PROPRIETARY PATENTED TECHNOLOGY AS REFERENCED IN THIS STATEMENT?
LISA PETERSON: THAT IT WAS CAPABLE OF DOING FINGERSTICK BLOOD TESTING --
LISA PETERSON: -- ON THEIR ANALYZER.
LISA PETERSON: "IT"?
LISA PETERSON: THAT THE ANALYZER IS CAPABLE OF DOING FINGERSTICK TECHNOLOGY BECAUSE OF ITS IP --
LISA PETERSON: -- AND IS DOING IT ACCURATELY.
MR. WADE: MY QUESTION WAS, WHAT DOES THERANOS PROPRIETARY PATENTED TECHNOLOGY REFER TO? WHAT IS THE BREADTH OF THE TECHNOLOGY?
LISA PETERSON: THE WAY THAT THE ANALYZER WORKS AND RUNS FINGERSTICK BLOOD TESTING ON IT.
MR. WADE: SO IS IT YOUR TESTIMONY THAT THERANOS PROPRIETARY PATENTED TECHNOLOGY REFERS TO JUST THE DEVICE?
LISA PETERSON: AND HOW IT DOES -- HOW IT DOES THE BLOOD TESTING WITHIN THE DEVICE, YES.
LISA PETERSON: WITH THE ASSAYS.
LISA PETERSON: I THINK IT'S IMPLIED.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. SO LET'S LOOK AT -- I KNOW MR. LEACH SHOWED YOU SOME. LET'S LOOK AT -- LET'S GO TO 19, WHICH IS -- YEAH, 19. IT'S 19 ON BOTH DOCUMENTS. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: WITH HOW IT'S GOING TO SAVE THE GOVERNMENT MONEY.
LISA PETERSON: CORRECT.
MR. WADE: THIS IS IN PART THE VISION THAT MS. HOLMES HAD WAS TO TRY TO CHANGE HEALTH CARE IN A WAY WHERE THERE WERE SAVINGS TO THE WHOLE SYSTEM; RIGHT?
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. IF YOU WOULD LOOK AT 40, WHICH MR. LEACH TALKED TO YOU ABOUT THIS. THIS IS FORWARD LOOKING; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: NO. BUT IT WAS VERY CLEAR THAT THEY WERE GOING TO DO 900 THE NEXT YEAR.
LISA PETERSON: YES.
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND IF YOU LOOK AT THE NEXT SLIDE, THAT, TOO, THAT TALKS ABOUT THE PROXIMITY OF THERANOS TO PATIENTS; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: NO. THAT WAS --
LISA PETERSON: THAT WAS HER VISION, YES.
MR. WADE: ALL RIGHT. AND IF YOU GO TO, IF YOU GO TO SLIDE 28, DO YOU SEE THAT? YOU WERE ASKED ABOUT THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: I'M FOCUSSED IN ON "THERANOS RUNS ANY TEST AVAILABLE IN CENTER LABORATORIES," AND WE WERE TOLD THAT THEY COULD DO HUNDREDS OF THEM, 2- TO 300 OF THEM.
LISA PETERSON: YES.
LISA PETERSON: I DON'T KNOW WHAT THEY MEANT BY THAT.
LISA PETERSON: I DON'T KNOW.
LISA PETERSON: IT'S NOT IN THE PICTURE.
MR. WADE: AND AGAIN, I BELIEVE IT WAS YOUR TESTIMONY THERE WERE NO SLIDES AT THE MEETING THAT YOU WENT TO --
LISA PETERSON: CORRECT.
LISA PETERSON: CORRECT.
MR. WADE: AND YOU DIDN'T BRING THESE SLIDES AND GO THROUGH A LIST OF QUESTIONS ITEM BY ITEM; RIGHT?
MR. WADE: AND IN FACT, YOU DIDN'T TAKE ANY NOTES, OTHER THAN ON THE FINANCIAL DOCUMENT, AT THE MEETING; RIGHT?
LISA PETERSON: NO, I TOOK NOTES.
MR. WADE: DO YOU RECALL PREVIOUSLY TESTIFYING THAT YOU TOOK NO NOTES BECAUSE IT WAS A HIGH LEVEL MEETING?
LISA PETERSON: I TOOK ENOUGH NOTES TO WRITE THE MEMO AFTERWARDS, YES.
LISA PETERSON: I --
MR. LEACH: OBJECTION. ARGUMENTATIVE.
JUDGE DAVILA: OVERRULED. YOU CAN ANSWER THE QUESTION.
LISA PETERSON: YES, MY MAIN JOB WAS TO SIT AND LISTEN. BUT I WAS TAKING NOTES, YES.
BY MR. WADE:
MR. WADE: OKAY. BUT AGAIN, NOT WITH RESPECT TO THIS POWERPOINT BECAUSE IT WASN'T DISCUSSED; CORRECT?
LISA PETERSON: CORRECT. THE PAGES THAT WERE PRESENTED WERE THE FINANCIALS IN THE MEETING.
MR. WADE: LET'S -- SINCE YOU BROUGHT IT UP, WHY DON'T WE TALK ABOUT THE FINANCIALS. I BELIEVE THAT'S ITEM 1853. DO YOU SEE THAT?
LISA PETERSON: WHICH BINDER?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND YOU UNDERSTOOD -- JUST HIGHLIGHT THE LANGUAGE IN THE UPPER LEFT-HAND CORNER. AGAIN, YOU UNDERSTOOD THAT THESE WERE PROJECTIONS; RIGHT?
LISA PETERSON: YES.
MR. WADE: AND IF YOU GO -- MR. LEACH DIDN'T FOCUS YOU I DON'T THINK ON THE SECOND PAGE. LET'S TAKE A LOOK AT THAT. OKAY. AND YOU SEE THIS WAS INCLUDED WITHIN THE MATERIALS AS WELL. DO YOU RECALL THAT?
LISA PETERSON: YES.
MR. WADE: OKAY. AND IT IDENTIFIES THAT THERE'S ALMOST $163 MILLION IN CASH AT THE TIME. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND THEN DOWN BELOW THERE'S $168 MILLION IN -- ALMOST $169 MILLION IN DEFERRED REVENUE AND CUSTOMER'S DEPOSITS; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND YOU SEE IN THE UPPER LEFT-HAND CORNER THAT THESE FINANCIALS THAT YOU WERE PROVIDED WERE PREPARED FOR THE PERIOD ENDING JULY 14TH, 2014?
LISA PETERSON: UH-HUH, YES.
LISA PETERSON: WHAT, WHAT WE HAD IN THE BINDERS, THESE TWO PAGES IS WHAT WE WERE GIVEN.
LISA PETERSON: YES.
LISA PETERSON: I DON'T RECALL IF WE ASKED FOR A SPECIFIC UPDATE.
MR. WADE: OKAY. I'M DONE WITH THE FINANCIAL DOCUMENT. DID YOU ASK, DURING YOUR MEETING, WHETHER THE COMPANY USED CASH OR ACCRUAL ACCOUNTING?
LISA PETERSON: I DON'T RECALL.
LISA PETERSON: I DON'T RECALL ASKING OR TALKING ABOUT THAT.
LISA PETERSON: UH-HUH.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: I BELIEVE SO.
MR. WADE: OKAY. WE'LL COME BACK TO THAT IN A SECOND. IN ADVANCE OF THE MEETING OUT THERE, OR IN THE MEETING OUT THERE, DO YOU RECALL MAKING THE STATEMENT THAT THIS WAS NOT A DUE DILIGENCE MEETING?
LISA PETERSON: I DON'T RECALL THAT.
LISA PETERSON: THIS WAS AN OPPORTUNITY TO ASK QUESTIONS, YES. WE WERE -- IT WAS AN ON SITE VISIT.
MR. WADE: OKAY. DO YOU RECALL TELLING THE GOVERNMENT THAT IN YOUR VIEW THIS WAS NOT A DUE DILIGENCE MEETING?
LISA PETERSON: I DON'T RECALL SAYING THAT.
LISA PETERSON: OKAY.
LISA PETERSON: YES.
LISA PETERSON: WHERE ARE THE PAGE NUMBERS?
MR. WADE: GOOD QUESTION. IN THE UPPER RIGHT-HAND CORNER. AGAIN, THIS IS ONE OF THOSE DOCUMENTS WHERE YOU SHOULD READ IT TO YOURSELF AND THEN I'LL ASK A QUESTION. IF YOU COULD READ THE LAST SENTENCE THERE.
(PAUSE IN PROCEEDINGS.)
BY MR. WADE:
LISA PETERSON: I'M STILL READING HERE.
(PAUSE IN PROCEEDINGS.)
LISA PETERSON: I DON'T RECALL -- I DIDN'T SAY THAT.
BY MR. WADE:
MR. WADE: HERE'S MY QUESTION. DOES THAT REFRESH YOUR RECOLLECTION THAT YOU TOLD THE GOVERNMENT THAT YOU DID NOT VIEW THE MEETING IN PALO ALTO AS A DUE DILIGENCE MEETING?
LISA PETERSON: I DON'T RECALL SAYING THAT.
MR. WADE: OKAY. DO YOU RECALL DURING THE MEETING THAT THERE WAS A SIGNIFICANT AMOUNT OF DISCUSSION ABOUT MS. HOLMES'S VISION IN THE MEETING?
LISA PETERSON: THERE WAS A LOT OF DISCUSSION ABOUT A LOT OF THINGS. THERE WAS A LOT --
MR. WADE: THAT WASN'T MY QUESTION. MY QUESTION WAS, DO YOU RECALL THAT THERE WAS A SIGNIFICANT AMOUNT OF DISCUSSION ABOUT MS. HOLMES'S VISION IN THE MEETING?
LISA PETERSON: YES.
MR. WADE: OKAY. I BELIEVE YOU TESTIFIED ON CROSS BEFORE WE TOOK OUR BREAK THAT YOU DIDN'T KNOW WHETHER THE WALTONS INVESTED?
LISA PETERSON: CORRECT.
LISA PETERSON: AT THE TIME OF THE INVESTMENT.
LISA PETERSON: OKAY.
LISA PETERSON: I DO.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. LEACH: NO OBJECTION, YOUR HONOR.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(DEFENDANT'S EXHIBIT 14089 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES. I DON'T REMEMBER THIS.
MR. WADE: WERE YOU A PART OF THE DISCUSSIONS THAT HE WAS HAVING WITH REPRESENTATIVES OF THE WALTON FAMILY?
LISA PETERSON: SAY AGAIN. I'M SORRY.
LISA PETERSON: MY BOSS WAS.
LISA PETERSON: YES.
LISA PETERSON: I ONLY HAD DISCUSSIONS WITH MR. DAMSTRA AROUND BDT. I KNEW THAT THEY WERE POTENTIALLY GOING TO LOOK AT THE INVESTMENT AND MAYBE INVEST.
MR. WADE: OKAY. I THINK ON YOUR DIRECTION TESTIMONY YOU MADE A LOT OF STATEMENTS RELATING TO INFORMATION THAT YOU LEARNED IN THAT MEETING. DO YOU RECALL THAT?
LISA PETERSON: WHICH MEETING?
LISA PETERSON: YES.
LISA PETERSON: I -- WE'VE HAD A LOT OF TIME TO THINK ABOUT IT. WE'VE TALKED ABOUT A LOT OF THINGS AND I HAD THE OPPORTUNITY TO READ THROUGH ALL OF THE MEMOS THAT I DID, AND THERE'S -- AND WE DID TALK ABOUT A LOT OF THINGS.
MR. WADE: OKAY. AND, AND YOU GAVE THAT DEPOSITION THAT WE TALKED ABOUT BEFORE IN MARCH OF 2019; RIGHT?
LISA PETERSON: MARCH OF 2019? OKAY, YES.
MR. WADE: THAT'S WHEN YOU GAVE THE DEPOSITION. THAT WAS A COUPLE YEARS AGO, TWO AND A HALF YEARS AGO; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND IN THE DEPOSITION YOU WERE SHOWN A LOT OF THE SAME DOCUMENTS THAT YOU'VE LOOKED AT TODAY; RIGHT?
LISA PETERSON: YES, BUT I'VE HAD A LOT OF TIME TO REFLECT AND READ THROUGH A LOT OF THINGS THAT WAS GOING ON AT THAT POINT IN TIME.
MR. WADE: OKAY. AND SO YOU'RE NOT DISPUTING THAT YOU SAID THAT YOU DON'T RECALL THE SPECIFICS IN THAT DEPOSITION?
LISA PETERSON: NOT AT THAT TIME, NO.
LISA PETERSON: I'VE, I'VE RECOLLECTED A LOT OF THINGS FROM WHAT I'VE READ, YES. I HAVE A TENDENCY TO WRITE A LOT DOWN.
MR. WADE: OKAY. THE RECOLLECTION THAT YOU GOT FROM REVIEWING A LOT OF THINGS, IS THAT REVIEWING IT IN CONNECTION WITH YOUR TESTIMONY HERE TODAY?
LISA PETERSON: YEAH. I'VE REVIEWED ALL OF MY NOTES, YES.
LISA PETERSON: THERE WASN'T ANYTHING THAT HASN'T BEEN IN THESE BINDERS.
MR. WADE: RIGHT. AND MY POINT IS THAT IN THAT DEPOSITION YOU WERE ACTUALLY SHOWN YOUR NOTES; RIGHT?
LISA PETERSON: I WAS TOLD NOT TO PREPARE AT ALL FOR ANY OF THOSE DEPOSITIONS, TO WHICH I DIDN'T. I DIDN'T GO BACK AND READ ANY OF MY NOTES FROM BEFORE.
MR. WADE: NOW, YOU ALSO TOLD THE GOVERNMENT IN 2017 THAT YOU DIDN'T TAKE ANY NOTES DURING THAT MEETING. WAS THAT -- ARE YOU -- DO YOU BELIEVE THAT YOU DID NOT SAY THAT?
MR. LEACH: OBJECTION, YOUR HONOR. CALLS FOR HEARSAY.
LISA PETERSON: YEAH, I --
JUDGE DAVILA: EXCUSE ME. EXCUSE ME, MA'AM.
LISA PETERSON: I DON'T RECALL SAYING THAT.
JUDGE DAVILA: HANG ON A SECOND. ARE YOU ABOUT DONE WITH THIS AREA, OR?
JUDGE DAVILA: OKAY. SUSTAINED.
BY MR. WADE:
(PAUSE IN PROCEEDINGS.)
BY MR. WADE:
LISA PETERSON: I'M SORRY. IT'S A LONG MEMO. WHAT AM I LOOKING AT?
LISA PETERSON: PAGE 7.
(PAUSE IN PROCEEDINGS.)
BY MR. WADE:
LISA PETERSON: I DON'T RECALL SAYING THAT.
MR. WADE: AND DO YOU RECALL THAT -- TELLING THE GOVERNMENT THAT IT ONLY CONTAINED HIGH LEVEL INFORMATION?
LISA PETERSON: I DO RECALL THAT, AND I DO RECALL -- IT SAYS PETERSON DID NOT HEAR ANYTHING AT THE MEETING THAT CHANGED HER UNDERSTANDING OF THERANOS.
LISA PETERSON: THE DISCUSSION FOCUSSED AROUND EVERYTHING THAT WE HAD READ IN THE BINDERS AND QUESTIONS AROUND THE CONTRACTS AND THE FINANCIALS AND WHERE THEY HAD DONE WORK PREVIOUSLY WITH THE ANALYZER AND WHERE THEY WERE GOING TO ROLL OUT AND THE VISION OF THE COMPANY, YES.
MR. WADE: OKAY. THAT WASN'T MY QUESTION. MY QUESTION WAS, DO YOU RECALL THAT THE MEETING FOCUSSED ON HIGH LEVEL INFORMATION? YES OR NO?
LISA PETERSON: IT DEPENDS ON THE DEFINITION OF "HIGH LEVEL." THOSE WERE THE TOPICS THAT WE DISCUSSED THAT I JUST LISTED.
MR. WADE: DO YOU RECALL ON DIRECT YOU GAVE TESTIMONY ABOUT THE FACT THAT THE SIZE OF THE INVESTMENT INCREASED ON SITE?
LISA PETERSON: YES.
MR. WADE: ISN'T IT THE CASE THAT ACTUALLY BEFORE THE DEVOSES AND MR. TUBERGEN AND YOU WENT OUT THERE THAT THERE WAS DISCUSSION AND A BELIEF THAT THEY SHOULD INCREASE THE INVESTMENT TO $100 MILLION?
LISA PETERSON: NOT THAT I RECALL.
(PAUSE IN PROCEEDINGS.)
LISA PETERSON: OKAY.
BY MR. WADE:
LISA PETERSON: YES.
MR. WADE: AND AGAIN, MR. SCHIERBEEK IS THE CONUMBER 2 PERSON WITHIN THE RDV OFFICE; IS THAT RIGHT?
LISA PETERSON: YES.
MR. LEACH: OBJECTION. HEARSAY, FOUNDATION. SHE'S NOT ON THIS.
JUDGE DAVILA: OKAY. GIVE ME JUST A MOMENT, PLEASE.
(PAUSE IN PROCEEDINGS.)
LISA PETERSON: YES. OH.
(PAUSE IN PROCEEDINGS.)
JUDGE DAVILA: DO YOU WANT TO JUST PROBE THIS THEN? IS THAT WHAT YOU WANT TO DO IS PROBE THIS? OR DID YOU --
BY MR. WADE:
MR. WADE: ARE YOU AWARE THAT THERE WAS ACTUALLY DISCUSSION AND A BELIEF GOING INTO THE TRIP TO CALIFORNIA THAT MR. TUBERGEN WAS VERY BULLISH ON THE POTENTIAL INVESTMENT AND THAT THEY PROBABLY WOULD MAKE $100 MILLION INVESTMENT?
LISA PETERSON: HE WAS VERY BULLISH ON THE OPPORTUNITY. I DON'T RECALL CONVERSATION AROUND 100 MILLION UNTIL AFTER THE MEETING, AND BOB DIDN'T -- MR. SCHIERBEEK DIDN'T HAVE ANYTHING REALLY TO DO WITH THIS DEAL.
LISA PETERSON: YES, BUT HE'S ON THE FAMILY SERVICES SIDE. HE'S NOT PART OF THE INVESTMENT GROUP.
MR. WADE: I UNDERSTAND YOUR VIEW. BUT YOU WERE NOT A PART OF EVERY CONVERSATION THAT MR. TUBERGEN HAD WITH MR. SCHIERBEEK; RIGHT?
LISA PETERSON: CORRECT. BUT I DON'T KNOW -- I DON'T KNOW WHERE HE WOULD HAVE GOTTEN THAT PROBABLY 100 MILLION INVESTMENT. THAT WASN'T THE DISCUSSION THAT WE HAD HAD ON THE PLANE.
LISA PETERSON: HE WAS, RIGHT, BUT HE WASN'T WORKING ON THIS DEAL.
MR. WADE: YOU UNDERSTOOD THAT HE COMMUNICATED WITH MR. TUBERGEN ABOUT THE THERANOS TRANSACTION; RIGHT?
LISA PETERSON: SURE. THEY COMMUNICATED. I DON'T KNOW IF THEY TALKED ABOUT THERANOS.
LISA PETERSON: CORRECT.
LISA PETERSON: YES. BUT HE WASN'T PART OF THE INVESTMENT COMMITTEE AND HE'S NOT IN THE INVESTMENT GROUP. HE CONTROLS THE CASH.
JUDGE DAVILA: WELL, THERE'S SOME OTHER INFORMATION ON HERE -- THAT'S WHY I ALLOWED YOU TO PROBE.
JUDGE DAVILA: OKAY. I'LL ALLOW IT IN, JUST THAT NUMBER 2 PARAGRAPH, AND I'M SURE YOUR TEAM CAN REDACT THAT.
(DEFENDANT'S EXHIBIT 14106, PARAGRAPH 2, REDACTED, WAS RECEIVED IN EVIDENCE.)
JUDGE DAVILA: OKAY.
JUDGE DAVILA: OKAY. AND WHY DON'T YOU TAKE A LOOK AT IT TO MAKE SURE THAT IT CONFORMS. THAT WOULD PROBABLY BE A GOOD IDEA.
JUDGE DAVILA: FOLKS, WHY DON'T YOU STAND UP AND STRETCH IF YOU WOULD LIKE.
(STRETCHING.)
MR. WADE: JUST TO MAKE SURE WE'RE ON THE SAME PAGE, WE'RE GOING TO INCLUDE THE HEADER AND THAT PARAGRAPH.
JUDGE DAVILA: RIGHT, UP TO SUBJECT AND NUMBER 2.
JUDGE DAVILA: GREAT. WHILE THAT HAPPENING, CAN I JUST ASK A TIME ESTIMATE FOR THIS WITNESS? WILL WE CONCLUDE THIS WITNESS TODAY?
JUDGE DAVILA: OKAY.
JUDGE DAVILA: THAT'S WHAT WE HAVE. THAT'S WHAT I TOLD THE JURY.
JUDGE DAVILA: OKAY.
BY MR. WADE:
LISA PETERSON: YES.
MR. WADE: AND THIS IS -- 10-14, AGAIN, IS A COUPLE OF DAYS BEFORE YOU, OR MAYBE THE DAY THAT YOU WERE HEADED OUT TO PALO ALTO; CORRECT?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND HE'S BEEN VERY BULLISH ON THIS POTENTIAL RELATIONSHIP/INVESTMENT. DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: AND THE FAMILY WAS TRAVELLING WITH HIM AND THAT IT WAS PROBABLY A $100 MILLION INVESTMENT; CORRECT? THAT'S WHAT HE SAYS THERE?
LISA PETERSON: YES.
MR. WADE: OKAY. AND THE INVESTMENT -- THE DECISION TO -- OR THE COMMITMENT TO INVEST WAS MADE ACTUALLY IN THE ROOM AT THERANOS; CORRECT?
LISA PETERSON: WE TALKED ABOUT SIZING, AND ALONG WITH WHAT SOME OF THE OTHER INVESTORS WERE GOING TO INVEST AT, AND, YES, WE DISCUSSED LOOKING AT IT, OR CONSIDERING THE 100 MILLION INSTEAD OF THE 50 MILLION.
MR. WADE: WELL, ACTUALLY, THERE WAS AN ACTUAL COMMITMENT MADE BY MR. TUBERGEN AND MR. DEVOS TO A $100 MILLION COMMITMENT IN THE MEETING WITH THERANOS; CORRECT?
LISA PETERSON: THERE WASN'T A COMMITMENT, NO. THAT'S NOT HOW IT WORKS. IT HAS TO GO THROUGH OUR INVESTMENT COMMITTEE PROCESS. THEY MAY HAVE SAID THAT THEY WOULD LOOK AT 100 MILLION OR WERE WILLING TO DO 100 MILLION, BUT IT STILL HAD TO BE -- IT STILL HAD TO GO THROUGH THE PROCESS. THERE WERE A NUMBER OF PEOPLE NOT THERE THAT WERE ON THE INVESTMENT COMMITTEE, AND JERRY IS NOT ON OUR INVESTMENT COMMITTEE.
LISA PETERSON: I DON'T RECALL.
MR. WADE: OKAY. WE'LL GO THROUGH THAT IN A SECOND, BUT BEFORE I DO, LET'S LOOK AT THE -- LET'S LOOK AT 204 -- I'M SORRY, 2097. DO YOU SEE THAT IN FRONT OF YOU?
LISA PETERSON: YES.
MR. WADE: OKAY. AND THAT'S AN EMAIL BETWEEN YOU AND ONE OF YOUR COLLEAGUES THAT DISCUSSES THE THERANOS INVESTMENT. DO YOU SEE THAT?
LISA PETERSON: YEAH, SHE'S A COWORKER, FRIEND.
MR. LEACH: NO OBJECTION, YOUR HONOR.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(GOVERNMENT'S EXHIBIT 2097 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
MR. WADE: LET ME BLOW UP THE MIDDLE EMAIL. THIS IS AN EMAIL THAT YOU WROTE ON OCTOBER 20TH, 2014; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND DO YOU SEE DOWN BELOW WHERE IT SAYS, "JERRY COMMITTED ON THE SPOT $100 MILLION WITH DOUG AND CHERI IN COMPLETE AGREEMENT"? DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: IT DOESN'T WORK THAT WAY. I THINK THAT HE HAD SIGNALLED AND DOUG AND CHERI WERE IN AGREEMENT TO DO THE 100 AND WE TALKED ABOUT THE 100 AFTERWARD. BUT IT STILL HAS TO GO THROUGH THE PROCESS OF GOING THROUGH INVESTMENT COMMITTEE. THAT'S JUST MY CHARACTERIZATION TO A FRIEND AND A COWORKER.
LISA PETERSON: WE TALKED ABOUT IT. I DON'T -- THERE'S, THERE'S NOT A COMMITMENT BECAUSE IT HAS TO GO THROUGH INVESTMENT COMMITTEE.
MR. WADE: LET ME JUST ASK IF THE LANGUAGE -- IF THAT IS AN ACCURATE STATEMENT AT THE TIME THAT YOU MADE IT.
LISA PETERSON: IT WAS MY CHARACTERIZATION OF WHAT I SAW GOING ON, YES.
LISA PETERSON: YES.
LISA PETERSON: IT'S -- WHICH PART ARE YOU ON? IT'S A FEW PAGES LONG.
MR. WADE: THE BOTTOM PART OF THE EMAIL IS AN EMAIL BETWEEN MR. TUBERGEN, MS. HOLMES, MR. BALWANI, AND MR. DEVOS, CORRECT, THE LATER PART OF THE EMAIL? AND THEN IT'S FORWARDED TO YOU; CORRECT?
LISA PETERSON: YES.
MR. LEACH: NO OBJECTION, YOUR HONOR.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(GOVERNMENT'S EXHIBIT 2098 WAS RECEIVED IN EVIDENCE.)
MR. WADE: IF WE CAN GO TO THE SECOND PAGE AND BLOW UP THE BOTTOM EMAIL. I'M SORRY. ACTUALLY, LET'S GO TO THE THIRD PAGE AND GET MR. TUBERGEN'S EMAIL.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU SEE IN THE MIDDLE PARAGRAPH WHERE IT SAYS, "WE WOULD LOVE TO MOVE FORWARD AND BE A PART OF THE NEW SHAREHOLDER BASE YOU ARE ASSEMBLING. AS WE DISCUSSED, AN INVESTMENT OF $100 MILLION SEEMS TO FIT, IF THAT WORKS FOR YOU AND THE COMPANY." RIGHT?
LISA PETERSON: YES, THAT'S PRETTY MUCH HOW IT WAS DISCUSSED IN THE MEETING.
MR. WADE: RIGHT. AND THAT'S FOUR DAYS AFTER THE MEETING THEY'RE SAYING THEY MADE THE COMMITMENT; CORRECT?
LISA PETERSON: IT DOESN'T NECESSARILY SAY THEY MADE THE COMMITMENT, BUT YES.
MR. WADE: ALL RIGHT. LET'S GO FORWARD AND LOOK AT MS. HOLMES'S EMAIL. DO YOU SEE THAT? AND SHE SAYS, "WE HAVE RESERVED THE $100 MILLION ALLOCATION FOR YOU AND THE FAMILY." DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: AND THEN THIS IS LATER FORWARDED TO YOU SO THAT SUNNY CAN BE IN TOUCH ON THE DOCUMENTATION; RIGHT?
LISA PETERSON: YES.
LISA PETERSON: WHERE? I'M SORRY?
LISA PETERSON: THERE'S NOTHING ON MY SCREEN. IS THERE SUPPOSED TO BE?
LISA PETERSON: OKAY.
MR. WADE: I'M SORRY. THE WAY IT WORKS IS THAT ONCE WE INTRODUCE IT, WE CAN PUT IT UP ON THE SCREEN. BUT UNTIL IT IS IN EVIDENCE, WE CAN'T PUT IT UP ON THE SCREEN. MY APOLOGIES.
LISA PETERSON: I DON'T -- I'M NOT SEEING 12856. I'M SORRY.
LISA PETERSON: WHERE AM I LOOKING?
LISA PETERSON: I THOUGHT WE WERE STILL ON THAT SERIES OF EMAILS. I'M SORRY.
LISA PETERSON: 12 --
MR. LEACH: YOUR HONOR, I HAVE NO OBJECTION TO THIS EXHIBIT IF YOU WANT TO JUST DISPLAY IT.
JUDGE DAVILA: DO YOU WANT TO INTRODUCE IT?
JUDGE DAVILA: ALL RIGHT. IT'S ADMITTED, AND IT MAY BE PUBLISHED.
(DEFENDANT'S EXHIBIT 12856 WAS RECEIVED IN EVIDENCE.)
MR. WADE: DO YOU SEE THAT THIS IS THAT EMAIL THAT WE WERE JUST TALKING ABOUT WHERE MS. HOLMES RESPONDED IN THE SEPARATE CHAIN THAT WAS FORWARDED TO YOU?
LISA PETERSON: YES, YES.
MR. WADE: OKAY. NOW, LET'S JUST GO UP THE CHAIN AND LOOK AT THE NEXT EMAIL. MR. TUBERGEN SAYS, "THANKS VERY MUCH." AND THEN WE'LL KEEP WORKING UP. THIS IS FOR -- HE THEN FORWARDS IT TO DOUG DEVOS?
LISA PETERSON: YES.
MR. WADE: AND THERE'S A SEPARATE COMMUNICATION BETWEEN MR. DEVOS AND MR. TUBERGEN. DO YOU SEE THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: "EXCITING TO BE A PART OF THIS TREMENDOUS EFFORT TO CHANGE THE WORLD FOR THE BETTER." DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: THE LAST LANGUAGE WE REFLECTED WAS THE FORWARD LONG-TERM FOCUS THAT THE DEVOS FAMILY HAD; CORRECT?
LISA PETERSON: YES.
MR. WADE: OKAY. LET'S LOOK UP THE CHAIN. MR. TUBERGEN CONFIRMS, "THANKS, DOUG. YUP, WE'RE THERE." RIGHT? DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: THE -- YOU'VE TALKED A LITTLE BIT ABOUT THE MEMO THAT YOU PREPARED. DO YOU RECALL THAT?
LISA PETERSON: YES. THE MEMO SUMMARIZED WHAT WAS DISCUSSED AT THE MEETING --
LISA PETERSON: -- ALONG WITH EVERYTHING ELSE.
JUDGE DAVILA: LET HIM FINISH.
BY MR. WADE:
MR. WADE: I APOLOGIZE. NORMALLY WE HAVE CONVERSATIONS, BUT WE HAVE TO LET ME FINISH, AND THEN I'LL TRY NOT TO INTERRUPT YOU, TOO. I THINK I'VE DONE THAT A FEW TIMES. I'M SORRY.
LISA PETERSON: OKAY.
LISA PETERSON: IT STILL HAS TO GO TO INVESTMENT COMMITTEE, SO IN MY -- IN MY FINISHING OF THIS, THE ONLY WAY THAT WE CAN FINALIZE EVERYTHING IS IT HAS TO -- THE MEMO HAS TO GO OUT AND BE SIGNED AND APPROVED THROUGH THE INVESTMENT COMMITTEE, BUT JERRY AND DOUG WERE EMAILING THAT THEY WERE THERE. SO YES.
MR. WADE: SO THE -- AGAIN, I UNDERSTAND THAT YOU HAD SOME -- ON YOUR END, YOU HAD SOME PROCESSING THAT YOU NEEDING TO PERFORM --
LISA PETERSON: CORRECT.
MR. WADE: -- AND SOME LOGISTICAL ISSUES, BUT THE INVESTMENT WAS DONE BEFORE THE MEMO WAS PREPARED; CORRECT?
LISA PETERSON: HMM -- THEY STILL -- WE STILL DIDN'T WIRE THE MONEY UNTIL AFTER OUR PROCESS WAS COMPLETED.
LISA PETERSON: IT'S NOT REALLY A COMMITMENT UNTIL YOU SEND THE DOCUMENTS.
LISA PETERSON: YES.
MR. LEACH: NO OBJECTION, YOUR HONOR.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(GOVERNMENT'S EXHIBIT 2139 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
MR. WADE: THIS IS A COMMUNICATION BETWEEN YOU AND MR. BALWANI WHERE YOU'RE WORKING TO PAPER THE DEAL AND GET SIGNATURES AND THE LIKE; RIGHT?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND THEN DO YOU RECALL THERE BEING WORD THAT THEY WANTED TO FUND IT PRETTY QUICKLY AND IT WAS FUNDED WITHIN A COUPLE OF DAYS AFTER THAT?
LISA PETERSON: AFTER THIS MEMO, OR AFTER WHAT?
LISA PETERSON: YES.
LISA PETERSON: 14080. OKAY. OKAY.
LISA PETERSON: CORRECT.
MR. LEACH: NO OBJECTION, YOUR HONOR.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(DEFENDANT'S EXHIBIT 14080 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
LISA PETERSON: CORRECT.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. LEACH: NO OBJECTION.
JUDGE DAVILA: IT'S ADMITTED. IT MAY BE PUBLISHED.
(DEFENDANT'S EXHIBIT 13987 WAS RECEIVED IN EVIDENCE.)
BY MR. WADE:
MR. WADE: AND IF YOU LOOK AT THE BOTTOM, YOU SEE THERE'S AN EMAIL FROM YOU TO A GROUP OF PEOPLE WITHIN RDV?
LISA PETERSON: YES.
LISA PETERSON: YES, INTERNAL.
MR. WADE: OKAY. AND THERE IT SAYS, "JERRY WANTS TO BRING THERANOS TO IC. NOT SURE WHEN THAT WILL BE, NOR IS IT RELEVANT GIVEN WE'VE FUNDED, BUT FYI I WON'T HAVE A SIGNATURE ON APPROVAL DOC FOR A BIT." DO YOU SEE THAT?
LISA PETERSON: YES.
MR. WADE: OKAY. AND THIS IS FIVE OR SIX DAYS AFTER THE MONEY WAS WIRED AND THE DOCUMENTS WERE SIGNED; RIGHT?
LISA PETERSON: CORRECT.
LISA PETERSON: BUT THE MEMO HAD GONE OUT ON THE 23RD OF OCTOBER.
LISA PETERSON: CORRECT.
LISA PETERSON: ON THE 20 -- IT WAS DONE ON THE 23RD AND SENT TO JERRY.
LISA PETERSON: I BELIEVE THEY GOT IT THEN. I DON'T KNOW EXACTLY.
LISA PETERSON: IN DECEMBER.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND I'D MOVE THE ADMISSION. I THINK THEY'RE APPROPRIATELY REDACTED ALREADY, YOUR HONOR. MAYBE WE CAN REDACT THE -- AFTER PETER EVANS NAMES.
JUDGE DAVILA: ON THE FRONT PAGE?
JUDGE DAVILA: MR. LEACH?
MR. LEACH: I DON'T OBJECT TO THE EXHIBIT, YOUR HONOR. THE REDACTIONS SOUND APPROPRIATE.
JUDGE DAVILA: WITH THOSE REDACTIONS, THEN IT WILL BE ADMITTED. MR. LEACH, YOU HAVE NO OBJECTION?
MR. LEACH: NO OBJECTION.
JUDGE DAVILA: ALL RIGHT.
(DEFENDANT'S EXHIBIT 14081 WAS RECEIVED IN EVIDENCE.)
MS. TREFZ: MR. WADE, CAN YOU JUST COME AND SEE? SORRY.
BY MR. WADE:
MR. WADE: OKAY. THIS IS THE DEVOS -- THESE ARE MINUTES OF THE DEVOS FAMILY COUNCIL MEETING; CORRECT?
LISA PETERSON: YES.
LISA PETERSON: YES. THIS ISN'T THE INVESTMENT COMMITTEE.
MR. WADE: RIGHT, I UNDERSTAND. BUT FOR THE FAMILY OFFICE, THEY -- THEY'LL ACT OFTEN AT THESE MEETINGS; CORRECT?
LISA PETERSON: THEY WHAT?
LISA PETERSON: ACT OFTEN? I'M NOT SURE I'M FOLLOWING.
MR. WADE: OKAY. LET ME TRY AGAIN. LIKE A CORPORATION SOMETIMES ACTS THROUGH ITS BOARD OF DIRECTORS, THE DEVOS FAMILY WILL TAKE CORPORATE ACTIONS AT MEETINGS OF THIS KIND; IS THAT RIGHT?
LISA PETERSON: FAMILY COUNCIL IS DIFFERENT THAN INVESTMENT COMMITTEE. OFTENTIMES THERE WILL BE AN UPDATE ON THINGS, BUT IT'S NOT A FORMAL INVESTMENT COMMITTEE MEETING.
LISA PETERSON: THOSE, THOSE CAN OFTEN BE DONE VIA TELEPHONE, AND WE DO HAVE TWO OR THREE A YEAR, FORMAL ONES.
MR. WADE: OKAY. AS YOU SIT HERE TODAY, DO YOU KNOW THE DATE ON WHICH THE INVESTMENT COMMITTEE ACTED, OR IF THEY ACTED?
LISA PETERSON: IT WAS MY UNDERSTANDING THAT THERE WAS A PHONE CALL OR DISCUSSION RIGHT AFTER -- BETWEEN THE 23RD AND THE 30TH, 31ST WHEN WE WIRED THE MONEY, THAT ALL WAS GREEN LIGHTED TO GO.
LISA PETERSON: IT'S JUST JERRY TELLING ME.
LISA PETERSON: YES.
MR. WADE: OKAY. IF I CAN PULL UP 13987, AND BRING UP THAT BOTTOM EMAIL AGAIN. IF YOUR RECOLLECTION IS RIGHT, WHY IS IT THAT THE DOCUMENT WASN'T SIGNED ON NOVEMBER 5TH, 2014?
LISA PETERSON: I DON'T KNOW IF HE JUST HADN'T SIGNED IT YET. BUT THERE HAD TO HAVE BEEN A DISCUSSION AROUND IT WITH THE OTHER MEMBERS OF THE INVESTMENT COMMITTEE. IT COULD HAVE HAPPENED ON THE PLANE AS WELL. I DON'T KNOW HOW MANY PEOPLE HAD TO -- ON THE WAY HOME. I DON'T KNOW HOW MANY HAD TO OKAY THE INVESTMENT --
LISA PETERSON: -- AS PART OF THE INVESTMENT COMMITTEE.
(PAUSE IN PROCEEDINGS.)
BY MR. WADE:
MR. WADE: AFTER YOUR INTERACTIONS IN THE MEETING WITH MS. HOLMES, WERE YOUR NEXT INTERACTIONS WITH PEOPLE FROM THERANOS THE INTERACTIONS WITH MR. BALWANI?
LISA PETERSON: THROUGH THE EMAILS AND A CONVERSATION ON THE TELEPHONE?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND COMMUNICATIONS THAT HAPPENED THEREAFTER WERE COMMUNICATIONS THAT HAPPENED AFTER "THE WALL STREET JOURNAL"?
LISA PETERSON: CORRECT.
MR. WADE: OKAY. AND YOU TESTIFIED ON DIRECT THAT -- OR YOU WERE SHOWN THE JIM CRAMER CLIP. DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. DO YOU RECALL OTHER -- YOU HAD OTHER INTERACTIONS WITH MS. HOLMES IN THE PERIOD FOLLOWING THAT CLIP? YOU TALKED ABOUT SOME OF THEM. DO YOU RECALL THAT?
LISA PETERSON: I DON'T RECALL THE EXACT DATE OF THAT CLIP. THE NEXT TIME THAT WE SAW ELIZABETH WAS APRIL -- LATE APRIL OF 2016.
LISA PETERSON: YES.
MR. WADE: OKAY. AND THAT WAS ATTENDED BY, I THINK YOU SAID, MR. MOSLEY, MR. TUBERGEN, AND SOME OTHERS AT THERANOS? DO YOU RECALL THAT?
LISA PETERSON: MYSELF AND LEGAL COUNSEL, HEATHER KING, AND DAN EDLIN, AND ELIZABETH.
MR. WADE: OKAY. AND DO YOU RECALL THAT THEY GAVE YOU AN UPDATE ON THE REGULATORY ISSUES AT THAT MEETING?
LISA PETERSON: YES.
MR. WADE: AND THEY GAVE YOU AN UPDATE ON SOME CHANGES THAT WERE BEING MADE WITHIN MANAGEMENT? DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: AND SET FORTH WHAT THEY THOUGHT WAS THEIR STRATEGY GOING FORWARD TO TRY TO REGAIN CREDIBILITY IN THE MARKETPLACE? DO YOU RECALL THAT?
LISA PETERSON: YES.
MR. WADE: AND ONE OF THOSE WAS TO TRY TO FOCUS ON, TRY TO WORK TO GET SOME PEER REVIEW PUBLICATIONS. DO YOU RECALL THAT?
LISA PETERSON: RIGHT.
MR. WADE: AND THERE WAS ALSO A PLAN TO FORM SOME COMMITTEES TO GIVE SCIENTIFIC AND TECHNICAL ADVICE TO THE COMPANY? DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: THEY DIDN'T GIVE US ANY PAPER AT THAT MEETING.
LISA PETERSON: WE DIDN'T LEAVE WITH ANYTHING. THERE MIGHT HAVE BEEN SOME VERBAL AROUND WHERE THE CASH WAS OF THE COMPANY, BUT I DON'T RECALL SPECIFICALLY.
MR. WADE: OKAY. DO YOU RECALL THAT THERE WAS DISCUSSION ABOUT HOW THEY HAD ABOUT $375 MILLION IN CASH AT THAT TIME?
LISA PETERSON: I DON'T RECALL THE EXACT NUMBERS.
LISA PETERSON: YES, WE WERE TALKING ABOUT THE CASH POSITION OF THE COMPANY.
LISA PETERSON: BUT THERE WERE NO FINANCIALS SHOWN.
MR. WADE: UNDERSTOOD. AND DID THEY TELL YOU THAT THEY WERE ACTUALLY IN THE PROCESS OF TRYING TO IMPROVE THE FINANCIALS OF THE COMPANY IN THAT TIME?
LISA PETERSON: I DON'T RECALL THAT PART OF THE CONVERSATION.
MR. WADE: DO YOU RECALL THAT THEY WERE BRINGING IN NEW PEOPLE INTO THE FINANCIAL OPERATIONS TO TRY TO IMPROVE THE ACCOUNTING FUNCTION?
LISA PETERSON: I RECALL WE SENT AHEAD A LIST OF QUESTIONS THAT WE HAD, AND A LOT OF IT WAS AROUND THE FINANCIALS AND EVERYTHING, AND WE DIDN'T RECEIVE ANY HARD CORE -- ANYTHING TO TAKE BACK WITH US. THAT IS WHAT I REMEMBER.
MR. WADE: OKAY. DO YOU REMEMBER THAT, AS PART OF THAT, THE COMPANY TOLD YOU THAT THEY -- PART OF THEIR STRATEGY FOR MOVING FORWARD WAS TO INCREASE ENGAGEMENT WITH THE SCIENTIFIC COMMUNITY? DO YOU RECALL THAT?
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND THAT THEY WERE WORKING, THAT THEY HAD PLANNED TO GIVE A PRESENTATION ABOUT THE TECHNOLOGY, THEIR TECHNOLOGY AT THE AACC --
LISA PETERSON: YES.
LISA PETERSON: YES. BUT WE WERE ALSO TOLD IN THAT MEETING -- MUCH OF WHAT YOU HEARD IN THE TWO CLIPS THAT WERE SHOWN IS THE SAME THING THAT SHE WAS SAYING IN THAT MEETING, THAT A LOT OF IT WAS ERRONEOUS AND UNFOUNDED AND DONE BY A VERY OVERZEALOUS REPORTER WHO WANTED TO WIN A PULITZER. THERE WAS A LOT OF CONVERSATION AROUND WE WERE TRYING TO UNDERSTAND WHAT WAS GOING ON IN THE NEWSPAPER AND TRYING TO GET HER TO EXPLAIN A LOT OF IS IT TRUE OR IS IT NOT TRUE? AND SHE DOWNPLAYED A LOT OF IT. AND THAT WAS MUCH OF THE CONVERSATION, MUCH MORE SO AROUND THAT NOT BEING BASED ON FACT OF WHAT WAS BEING WRITTEN IN THE NEWSPAPER THAN THE CHANGING OF THE PEOPLE.
MR. WADE: YOUR HONOR, I WOULD MOVE TO STRIKE EVERYTHING AFTER THE IMMEDIATE ANSWER TO MY QUESTION.
(PAUSE IN PROCEEDINGS.)
JUDGE DAVILA: ALL RIGHT. I'LL STRIKE -- EVERYTHING AFTER "YES" IS STRICKEN AS NONRESPONSIVE.
BY MR. WADE:
MR. WADE: AND ONE OF THE THINGS THAT YOU CAME AWAY FROM THAT MEETING WAS A REQUEST TO GET -- YOU WANTED TO GET AN INVITE TO THE AACC PRESENTATION?
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES. THAT WAS MY VIEW OF THINGS, YES.
MR. WADE: BUT THERANOS WENT IN AND GAVE -- A NUMBER OF PEOPLE GAVE A PRESENTATION AND PARTICIPATED IN THE Q AND A WITH RESPECT TO THEIR TECHNOLOGY; CORRECT?
LISA PETERSON: A NUMBER OF -- I'M SORRY, SAY AGAIN.
MR. WADE: LET ME TAKE IT IN TWO STEPS. DO YOU RECALL THAT THERE WERE SEVERAL PEOPLE FROM THERANOS AT THAT MEETING, AT THAT CONFERENCE?
LISA PETERSON: I ONLY RECALL ELIZABETH TALKING.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. WADE: OKAY. AND DO YOU RECALL THAT AFTER HER PRESENTATION THERE WAS A Q AND A WITH A PANEL OF PEOPLE?
LISA PETERSON: YES -- I DON'T RECALL EXACTLY, NO.
MR. WADE: AND DO YOU RECALL THAT THERE WERE THREE PEOPLE FROM AACC REPRESENTATIVES AND ABOUT FOUR PEOPLE FROM THERANOS?
LISA PETERSON: I DON'T REMEMBER THAT, NO.
MR. WADE: OKAY. DO YOU RECALL -- LET ME GIVE YOU NAMES AND SEE IF YOU REMEMBER THAT. DO YOU RECALL THAT DR. YOUNG WAS THERE?
LISA PETERSON: I DON'T RECALL OBSERVING THAT PART OF IT. I REMEMBER HER PRESENTING, YES.
LISA PETERSON: I JUST PREPARED A SUMMARY OF WHAT I OBSERVED.
LISA PETERSON: I DIDN'T, I DIDN'T TRY TO SUMMARIZE WHAT SHE WAS TRYING TO SAY.
LISA PETERSON: THE WHOLE PURPOSE OF GOING WAS TO TRY TO FIGURE OUT WHETHER THE TECHNOLOGY WORKED OR NOT. WE WERE STILL TRYING TO FIGURE OUT WHAT WAS GOING ON.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
LISA PETERSON: YES.
MR. LEACH: YOUR HONOR, RELEVANCE AND HEARSAY, 403.
(PAUSE IN PROCEEDINGS.)
JUDGE DAVILA: I'M JUST CURIOUS HERE ABOUT THE TIME DIFFERENCE AND THE RELEVANCE.
MR. WADE: WELL, I WONDER IF, GIVEN THE HOUR, MAYBE WE CAN BREAK HERE AND THEN DISCUSS THIS WITHOUT BURDENING THE JURY AND START BACK WITH THIS TOMORROW?
JUDGE DAVILA: LET'S DO THAT THEN. LADIES AND GENTLEMEN, LET'S TAKE OUR RECESS FOR THE DAY. WE'LL RESUME TOMORROW AT 9:00 O'CLOCK. AGAIN, LET ME ADMONISH YOU TO CONTINUE YOUR VIGILANCE NOT TO READ, LISTEN, OR DISCUSS THIS CASE IN ANY WAY WITH ANYONE OR TO FORM ANY OPINIONS ABOUT THIS CASE UNTIL THE CASE HAS BEEN DELIVERED TO YOU FOR YOUR DELIBERATIONS. PLEASE CONTINUE TO DO THAT. I'LL ASK YOU TOMORROW IF ANY OF YOU HAVE INADVERTENTLY COME ACROSS ANY SUBJECT MATTER. LET ME ALSO TELL YOU ANOTHER SCHEDULING ISSUE. NOVEMBER 4TH WE'RE IN SESSION, THAT'S NEXT THURSDAY, BUT WE WON'T START UNTIL 9:30. 9:30 THAT MORNING I EXPECT IS WHEN OUR START TIME WILL BE. I JUST WANT TO LET YOU KNOW THAT FOR PLANNING PURPOSES. TOMORROW WE'LL GO UNTIL 4:00 O'CLOCK I HOPE. IS THAT A PROBLEM FOR ANYONE? OKAY. LET'S SHOOT FOR 4:00 O'CLOCK. OTHER THAN THAT, WE'LL BE IN RECESS FOR THE DAY. THANK YOU VERY MUCH. MS. PETERSON, YOU CAN STAND DOWN AS WELL. THANK YOU. WE'LL SEE YOU TOMORROW AT 9:00 O'CLOCK, PLEASE.