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Federal Criminal Trialtrial-daytrial-dayJohn C. BosticKevin M. DowneyAlan EisenmancrossredirectrecrossDay 32 - November 15, 2021Cross-examination of Alan Eisenman focused on Theranos disclosures, his 2013 investment, possible share sales, and his contacts with government agents. The court also deferred a dispute over his original notes while redirect addressed the present-tense technology claims he said informed his investment.
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Day 32 - November 15, 2021

Eisenman Questioned on Disclosures, Government Contacts, and Original Notes

Judge Edward J. Davila
4Proceedings
2Pages
1Witnesses
1,691Lines
Day 32 of 51
Appearing:

Cross-examination of Alan Eisenman focused on Theranos disclosures, his 2013 investment, possible share sales, and his contacts with government agents. The court also deferred a dispute over his original notes while redirect addressed the present-tense technology claims he said informed his investment.

Full day summary

Before testimony resumed, the parties addressed whether the defense could question Alan Eisenman about an approximately 20-year-old securities-regulatory matter. The defense disclaimed presenting the documents, penalties, or a pattern of conduct, and the court cautioned that the jury should not hear that Eisenman had committed a violation. On cross-examination, the defense used emails and investment documents to examine Eisenman's repeated requests for Theranos information, the written risk disclosures he received, his 2013 investment, possible opportunities to sell his shares, and his contacts with prosecutors and FBI agents. Eisenman acknowledged that he lacked a legal right to frequent updates and had received warnings describing the investment as highly risky, but maintained that Holmes withheld information he believed shareholders should receive and that the written provisions did not reflect his understanding that Theranos had proven technology. He also acknowledged emailing an agent with reflections after being told not to discuss the substance of his ongoing testimony, denied seeking feedback, and said his cooperation reflected his belief that he had been lied to and taken advantage of. The court repeatedly struck nonresponsive portions of his answers or directed him to answer the question asked. Eisenman's original handwritten notes prompted a separate dispute after the defense pointed to different ink colors and page ordering as possible discrepancies. The court retained the originals for color copying, confirmed that the notes were not evidence, and deferred any further examination while the defense reviewed them. On redirect, Eisenman said Holmes made present-tense claims about Theranos's capabilities and that he relied on then-current information from several sources when investing in 2013. Brief recross addressed decision-making and information sharing among related family investment entities. Eisenman remained subject to possible recall pending the defense's review of his notes.

2. Alan Eisenman — Cross/Redirect/Recross (Continued)

Alan Eisenman's testimony continued through cross-examination, redirect, and recross, while the court separately addressed defense concerns about his handwritten notes and kept him subject to possible recall.

Cross
Alan EisenmanKevin M. Downey
826 lines

Defense counsel used investor emails, prior statements, and Eisenman's communications with prosecutors during his ongoing testimony to challenge his recollection and credibility. Eisenman maintained that Theranos withheld information and that Balwani encouraged his 2013 investment, while acknowledging limits on his information rights and an email to the prosecution after a no-contact instruction.

Procedural
Hearing on Alan Eisenman's Testimonial Notes

The court retained Alan Eisenman's original notes for color copying and further review after the defense questioned their ink colors and page order; the disputed notes remained outside evidence and the issue was withheld from the jury.

Cross
Alan EisenmanKevin M. Downey
458 lines

Defense counsel confronted Alan Eisenman with written risk warnings, investment agreements, possible share-sale opportunities, and his contacts with the prosecution. Eisenman acknowledged the documents and market inquiries but maintained that the warnings conflicted with earlier representations, that proposed company offers were not completed, and that he lacked adequate financial information to decide whether to sell.

Redirect
Alan EisenmanJohn C. Bostic
117 lines

Alan Eisenman distinguished speculative projections from claims about Theranos's existing capabilities and explained the information he relied on for his 2013 investment. He also addressed his requests for company information, Balwani's response to the investment, possible stock sales, and his conclusion that the shares were now worth zero.

Recross
Alan EisenmanKevin M. Downey
62 lines

Alan Eisenman identified family investment entities associated with his 2013 Theranos investment and qualified how often he shared company information or his views with them. The court kept him subject to possible recall.

Procedural
Post-Testimony Hearing on Alan Eisenman's Notes

The defense received additional time to review Alan Eisenman's original notes and agreed to notify the court that evening whether he needed to be recalled.

Highlights

Alan Eisenman — CrossconfrontationThe defense introduced the May 2010 email chain and used it to distinguish Eisenman's specific Theranos experience from his general understanding that equity offerings can restrict company and investor disclosures. After repeated nonresponsive answers, the court struck responses and reframed the question.Alan Eisenman — Cross“NO. I UNDERSTOOD THAT SHE WAS HIDING INFORMATION THAT I SHOULD KNOW AS A SHAREHOLDER.”— Alan EisenmanEisenman rejected the defense characterization of Holmes's communications and stated his own understanding of why information was not being provided.Alan Eisenman — CrossimpeachmentEisenman acknowledged that prosecutors told him not to discuss the substance of his ongoing testimony and that he nevertheless emailed Agent Hernandez with reflections on that testimony. He denied sending the message to obtain feedback, and the defense withdrew its request to admit the heavily redacted email after an objection.Hearing on Alan Eisenman's Testimonial NotesrulingThe court kept the original notes for color copying and continued the cross-examination. The parties agreed not to raise the notes issue before the jury pending further discussion, and the court clarified that the notes were not evidence.Alan Eisenman — Cross (Resumed)testimony highlightDefense counsel confronted Eisenman with the representations and warranties in the stock-purchase agreement. Eisenman repeatedly characterized the provisions as boilerplate and distinguished them from his understanding that Theranos had proved itself and was succeeding.Alan Eisenman — Cross (Resumed)“NO, I'M NOT ACKNOWLEDGING THAT THAT'S MY UNDERSTANDING. I'M ACKNOWLEDGING THAT THIS IS BOILERPLATE. THAT IF YOU WANT TO INVEST, YOU MUST SIGN THIS. AND I HAD NO POWER TO CHANGE THIS. BUT THAT'S NOT MY UNDERSTANDING OF WHERE THE COMPANY WAS.”— Alan EisenmanThe answer captures Eisenman's distinction between the agreement's written warnings and his claimed understanding of Theranos when he invested.Alan Eisenman — Cross (Resumed)impeachmentAfter Defendant's Exhibit 14109 was admitted, counsel questioned Eisenman about describing himself as a faithful part of the prosecution team. Eisenman rejected that characterization as subjective but said he believed he had been lied to and taken advantage of and shared the goal that justice be served.Alan Eisenman — Cross (Resumed)“OKAY. FAITHFUL IS A SUBJECTIVE CLAUSE. I'LL BE MORE OBJECTIVE. I THINK THERE WAS BUSINESS FRAUD. I THINK THAT I WAS LIED TO AND TAKEN ADVANTAGE OF. I THINK THAT THERE WAS A LOT OF ABUSE THROUGH THE YEARS, AND I WOULD DO WHAT I CAN TO TELL MY STORY, AND I KNOW THAT WE, WE HAVE THE SAME OUTCOME, THAT JUSTICE BE SERVED.”— Alan EisenmanEisenman articulated his personal view of the case and his motivation for cooperating, making the answer central to the defense examination of possible bias.Alan Eisenman — Redirecttestimony highlightEisenman distinguished speculative projections from statements about present capabilities, testifying that Holmes described what Theranos technology could do at the time and that he relied on those representations when investing in 2013.
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