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Erika Cheung worked as a lab assistant at Theranos for six months in 2013 and 2014 before reporting lab testing problems to federal agents.
By Erin Griffith
SAN JOSE, Calif. — A key whistle-blower against Theranos, the blood testing start-up that collapsed under scandal in 2018, testified on Tuesday in the fraud trial of the company’s founder, Elizabeth Holmes.
The whistle-blower, Erika Cheung, worked as a lab assistant at Theranos for six months in 2013 and 2014 before reporting lab testing problems at the company to federal agents at the Centers for Medicare & Medicaid Services in 2015. Her first day of testimony revealed to a jury what those following the Theranos saga most likely already knew: The company’s celebrated blood testing technology did not work.
Her testimony is expected to continue on Wednesday.
In a crowded courtroom, Ms. Cheung said she had turned down other job offers out of college to join Theranos because she was dazzled by Ms. Holmes’s charisma and inspired by her success as a woman in technology. Ms. Holmes said Theranos’s machines, called Edison, would be able to quickly and cheaply discern whether people had a variety of health ailments using just a few drops of blood.
“She was very articulate and had a strong sense of conviction about her mission,” Ms. Cheung said of Ms. Holmes.
Who’s Who in the Elizabeth Holmes Trial
Who’s Who in the Elizabeth Holmes Trial
Elizabeth Holmes, the disgraced founder of the blood testing start-up Theranos, was found guilty of four of 11 charges of fraud.
Here are some key figures in the case →
Who’s Who in the Elizabeth Holmes Trial
Holmes founded Theranos in 2003 as a 19-year-old Stanford dropout. She raised $945 million and was crowned the world’s youngest billionaire, but was accused of lying about how well Theranos’s technology worked. She pleaded not guilty.
Who’s Who in the Elizabeth Holmes Trial
Ramesh Balwani, known as Sunny, was Theranos’s president and chief operating officer from 2009 through 2016 and was in a romantic relationship with Holmes. He has been accused of fraud and may stand trial next year. He has pleaded not guilty.
Who’s Who in the Elizabeth Holmes Trial
David Boies, a prominent litigator, represented Theranos as its lawyer and served on its board.
He tried to shut down whistle-blowers and reporters who questioned the company’s business practices.
Who’s Who in the Elizabeth Holmes Trial
The journalist John Carreyrou wrote stories exposing fraudulent practices at Theranos.
His coverage for The Wall Street Journal helped lead to the implosion of Theranos.
Who’s Who in the Elizabeth Holmes Trial
Tyler Shultz and Erika Cheung are former Theranos employees and were whistle-blowers. They worked at the start-up in 2013 and 2014. Shultz is a grandson of George Shultz, a former secretary of state who was on the Theranos board.
Who’s Who in the Elizabeth Holmes Trial
James Mattis, a retired four-star general, was a member of Theranos’s board.
He went on to serve as President Donald J. Trump’s secretary of defense.
Who’s Who in the Elizabeth Holmes Trial
Edward Davila, a federal judge for the Northern District of California, will oversee the case.
Kevin Downey, a partner at the Washington law firm Williams & Connolly, is the lead lawyer for Holmes.
Robert Leach, an assistant United States attorney for the Northern District of California, will lead the prosecution for the government, along with other prosecutors from the U.S. attorney’s office.
Read more about Elizabeth Holmes:
- They Still Live in the Shadow of Theranos’s Elizabeth Holmes
- Theranos Founder Elizabeth Holmes Indicted on Fraud Charges
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But Ms. Cheung’s excitement faded after she witnessed actions she disagreed with in Theranos’s lab, she said. In some cases, outlier results of the blood tests were deleted to ensure that Theranos’s technology passed quality control tests. Ms. Cheung was also alarmed when she donated her own blood to Theranos and tests on the company’s machines said she had a vitamin D deficiency but traditional tests did not, she testified.
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