Day 33 - November 16, 2021

Before testimony, the parties disputed whether the defense's LIS questioning could permit additional government evidence or affect closing argument. The court moved on without announcing a new LIS ruling. It then declined to reconsider its exclusion of Theranos customer survey reports, finding insufficient relevance and concluding that their minimal probative value was outweighed by prejudice and the time required to review them. So-Han Spivey testified about the approval and payment of Theranos advertising expenses. Records connected a request for third- and fourth-quarter television spending with a $1,126,661 wire to Horizon Media. On cross-examination, Spivey clarified that Holmes and Balwani approved the wire, not the proposed advertising copy, and said she did not know whether the advertisements ran. She also qualified a Theranos balance-sheet figure because the document appeared to rely on assumptions. Brian Grossman described PFM's diligence and investments in Theranos. He attributed claims about Theranos's testing capabilities and commercial prospects to Holmes and Balwani, said PFM repeatedly asked about technical limitations, and testified that undisclosed use of third-party analyzers would have raised additional questions. Transaction records reflected investments by three PFM-related entities. On cross-examination, Grossman acknowledged PFM's independent expertise, conflicting outside information, and authority to decline the investment, while maintaining that Theranos's refusal to permit direct contact with Walgreens and UnitedHealth increased PFM's reliance on company representations. His cross-examination remained unfinished, and the court later held a sealed proceeding outside the jury's presence.