The hearing for Theranos founder Elizabeth Holmes began Tuesday in federal court in San Jose, California, as discussions on its upcoming trial continue.
Holmes, who is pregnant, appeared in person for the preliminary proceedings, during which her lawyers insisted on leaving some things out of the pending case.
Issues discussed on Tuesday included an exchange of texts, reports from regulators and information related to Holmes̵
She has another day of pre-trial proceedings on Wednesday.
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Holmes, once thought to be a billionaire, has achieved a spectacular rise in the technology community based on its vision of building a simplified blood test system.
In its heyday, the company, founded in 2003, is valued at more than $ 9 billion after raising nearly $ 900 million from investors, according to The Wall Street Journal. However, Holmes is said to have misrepresented her company, its technology and its capabilities.
Following the start of follow-up inspections triggered by a Wall Street Journal investigation, lawsuits and failed deals, the company had less than $ 200 million at the end of 2016 – less than 25% of the amount in cash , which was initially raised by investors. Theranos did not generate any revenue in 2015 or 2016.
The company was closed in 2018.
Holmes’ lawyers said Tuesday that prosecutors had no evidence that the blood tests did not work, according to The Journal.
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Terranos, Holmes and former President Ramesh “Sunny” Balvani have agreed to an agreement with the SEC, which claims they have committed a “massive fraud” in lying about one of the company’s key products. In addition, Holmes was deprived of control of the company and banned from serving as an officer or director in any public company for the next decade.
Holmes and Balvani were indicted by a grand jury in June 2018, against which they are still defending themselves.
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The trial against Holmes is due in August, while the trial against Balvani is due to begin early next year.