Elizabeth Holmes’ high-stakes decision to testify in her own defense could reach its most risk intense phase Monday as prosecutors’ inevitable cross-examination draws nearer. The failed blood-testing entrepreneur is scheduled to return to the stand for her fourth day of testimony.
Holmes, founder and CEO of the now defunct Silicon Valley biotech startup, Theranos, faces 11 counts of fraud for allegedly lying to investors and patients about her company’s capabilities. Each count carries a penalty of up to 20 years in prison.
So far, Holmes has fielded questions solely from her own lawyer. That questioning is scheduled to resume Monday, after which prosecutors will get their chance to hold her feet to the fire.
“The devil will be in the details as to exactly what she knew when she knew it, and what she was telling investors at that particular moment,” Waymaker LLP partner Keri Curtis Axel said on Yahoo Finance Live (video above). “And I expect we'll see a lot of that on cross-examination with the government ... They're going to impeach her with a lot of specific details.”
One of the most challenging details Holmes will need to overcome is an admission, drawn by her lawyer on direct examination, that Holmes added logos for pharmaceutical giants Pfizer (PFE) and Schering-Plough to a 55-page document that Theranos shared with investors. The documents purportedly validated the company's blood-testing technology.
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