Day 46 - December 16, 2021
Judge Davila limited jurors' use of CMS report excerpts before the prosecution argued that Holmes knowingly deceived investors and patients. The defense began its closing by portraying Theranos as a genuine business and disputing fraudulent intent before the court recessed with its argument unfinished.
Full day summary
1. Closing Argument by the Prosecution
Judge Davila addressed exhibit procedures and gave a limiting instruction on Trial Exhibit 4621 before prosecutor Jeff Schenk began the government’s closing argument.
Highlights
Jury Limiting Instruction on Exhibit 4621jury eventBefore closing arguments, Judge Davila instructed jurors that Exhibit 4621 could be considered solely for Holmes's state of mind, not for the truth of the CMS report's assertions. He noted that he had not given the instruction when evidence closed.Jury Limiting Instruction on Exhibit 4621“TRIAL EXHIBIT 4621, WHICH CONTAINS EXCERPTS OF THE JANUARY 25, 2016 CMS REPORT WAS ADMITTED FOR A LIMITED PURPOSE, THE LIMITED PURPOSE OF MS. HOLMES'S STATE OF MIND AND NOT FOR THE TRUTH OF THE MATTER ASSERTED.”— Edward J. DavilaThe court defined the limited evidentiary use jurors could make of the CMS report excerpts immediately before closing arguments.Closing Argument by the ProsecutionotherThe prosecution opened with its central theory that Holmes faced Theranos's financial decline and chose to deceive investors and patients rather than permit the company to fail.Closing Argument by the Prosecution“SHE CHOSE FRAUD OVER BUSINESS FAILURE.”— Jeff SchenkThis sentence stated the prosecution's central theory that the charged conduct was a deliberate alternative to permitting Theranos to fail.Closing Argument by the Prosecutionevidence eventThe prosecution synthesized investor evidence concerning analyzer capabilities, Theranos finances, demonstrations, Walgreens, military work, third-party devices, pharmaceutical validation, media articles, and the charged Fedwire transfers.Closing Argument by the Prosecutionevidence eventAfter the recess, Schenk addressed the patient counts through advertising claims, assay and quality-control records, HCG and PSA timelines, laboratory warnings, physician communications, and the interstate faxes and media-buy transfer.Closing Argument by the ProsecutionconfrontationThe prosecution rebutted defense themes concerning ordinary business failure, Holmes's experience, her decision not to sell stock, the government's asserted 'dirty lens,' defense witnesses, and Holmes's credibility, while telling jurors they need not resolve her abuse allegations to decide the charges.Closing Argument by the Prosecution“IF YOU RETURN A VERDICT OF GUILTY, YOU'RE NOT SAYING THAT WE, THE JURY, DO NOT BELIEVE MS. HOLMES'S CLAIMS OF ABUSE.”— Jeff SchenkThe prosecution argued that jurors could decide the fraud charges without resolving Holmes's allegations about abuse by Balwani.
2. Closing Argument by the Defense
Defense counsel argued that Holmes acted in good faith while leading a genuine but imperfect business, and the court recessed before the defense completed its closing argument.
Highlights
Closing Argument by the DefenseotherDefense counsel opened by characterizing Theranos as a genuine business rather than a criminal enterprise and contending that the complete evidentiary record presented a different picture from the prosecution's account.Closing Argument by the Defense“ELIZABETH HOLMES WAS BUILDING A BUSINESS AND NOT A CRIMINAL ENTERPRISE.”— Kevin M. DowneyThis sentence stated the defense's central theory that Theranos was a genuine commercial effort rather than a fraudulent scheme.Closing Argument by the Defenseevidence eventThe defense used pharmaceutical contracts, projects, witness testimony, and the chronology of report logos to argue that the prosecution presented an incomplete account of Theranos's relationships with Pfizer, GSK, Celgene, and Schering-Plough.Closing Argument by the DefenseotherCounsel emphasized the presumption of innocence, reasonable doubt, intent to defraud, willfulness, and good faith as the governing questions for the wire-fraud and conspiracy counts.Closing Argument by the Defense“IF SOMEONE IS ACTING IN GOOD FAITH, YOU HAVE NO REASON TO FIND THEM GUILTY, EVEN IF THE OTHER ELEMENTS OF AN OFFENSE ARE FOUND.”— Kevin M. DowneyCounsel made good faith the principal bridge between the evidence and the requested not-guilty verdicts.Closing Argument by the Defenseprocedural actionThe court ended the trial day while the defense argument remained unfinished and directed jurors to avoid outside information before closing arguments resumed the next morning.