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Did Elizabeth Holmes (Theranos) Threaten Erika Cheung? — Transcript

by Michele's Analysis · 2,798 words · 531 segments · language en · Watch on YouTube

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0:02how did elizabeth holmes deal with
0:05whistleblowers
0:07in particular how did she deal with
0:09erica chung
0:11who used to work at their nose who quit
0:14and was one of the whistleblowers to the
0:16wall street journal
0:19so we're going to take a look at that
0:21letter and you decide you decide whether
0:24you think that was your average
0:25ceased and assist letter
0:27whether it was proper
0:29whether it was threatening
0:31whether it was harassing
0:33i watched erica chung testify in the
0:36elizabeth holmes trial and she talked
0:38about this letter so i thought i would
0:40share this letter with you
0:43hi there i'm michelle hagan
0:45i'm a legal analyst and a former
0:47prosecutor
0:49i'm also
0:51you may recognize me because i provided
0:54a lot of legal analysis in the elizabeth
0:56holmes trial
0:58so
0:59i created this channel because a lot of
1:01you reached out and said hey michelle
1:03where can we get more of your legal
1:05analysis
1:06so here it is
1:08so please leave your comments your
1:09questions and do subscribe
1:13okay let me give you a little background
1:15in case you popped on this channel and
1:16don't know who elizabeth holmes is
1:19so
1:19miss home started a blood testing
1:22company
1:24and in january of 2022 she was found
1:28guilty of four counts of fraud basically
1:31making
1:32misrepresentations
1:34to investors
1:36turns out the technology didn't work
1:38according to
1:40many of the witnesses and the jury found
1:43that she committed fraud
1:46so
1:48there were four whistleblowers and if
1:50you go to my previous video
1:52i think it's called texts
1:55reveal elizabeth holmes whistleblowers
1:58you'll find out who those four
2:00whistleblowers are and who that
2:02investigative reporter is who blew the
2:04lid off of theranos
2:07so let's take a look at this letter that
2:10erica chung got
2:12from theranos
2:20okay here's the letter and i'm going to
2:22go through it with you
2:24but um so i apologize if these yellow
2:28highlights are annoying but this is how
2:30i work this is how i roll
2:32all right so i'm going to point out a
2:34few things you know as a lawyer looking
2:36at this
2:37and i want to say something first
2:40you know it takes a lot of courage for
2:42whistleblowers to come come forward
2:44you know in erica chung when she
2:46received this letter i think she was in
2:48her very i think she was in early 20s 20
2:5121 years old
2:54so
2:55you know put yourself in her shoes and
2:58think about how this must have
3:00felt for her to get this kind of a
3:02letter
3:03and
3:05also whether you know
3:07you think it's a proper letter to you
3:09know what we call lawyers call a cease
3:11and desist letter
3:13not particularly a letter i would send
3:15but i'll point that out to you all right
3:18so let's break this letter down let's
3:20take a look at it this is a letter that
3:22erica got
3:24from theranos from their lawyers
3:28and this took place if you go back to my
3:30previous video you will see that it was
3:33january 26th
3:35when sonny balwani says to elizabeth
3:37holmes text to her
3:41that it was okay i think it was okay to
3:43send the letter to erica well this is
3:45the letter they sent to erica chung
3:48look at the date june 26 2015.
3:52all right so let's go through it
3:54via hand delivery hand delivery they
3:57didn't mail this letter to her they had
3:59someone hand it to her
4:02hmm
4:04okay
4:06redacted part i didn't redact this this
4:08is from the court this is one of the
4:10exhibits
4:12from the holmes trial
4:14so i didn't do any of this redacting
4:16this is just how the exhibit appears all
4:18right
4:20so let's go ahead and read it dear miss
4:22chung
4:23this firm
4:25represents theranose
4:28we have reason to believe that you have
4:30disclosed
4:32certain of the company's trade secrets
4:34there's that trade secrets again
4:37and other confidential information
4:39without authorization
4:42you see this letter came out when sunny
4:44and elizabeth were figuring out who the
4:47four whistleblowers are they figured out
4:49one of them was erica chung
4:52and if you go back and look at that
4:53video that i did you will see that they
4:55were talking about getting their legal
4:57involved
4:58this is their law this is their legal
5:00sending her a
5:01cease-and-desist letter
5:04cease and desist means stop what you're
5:06doing don't be divulging any secrets
5:10proprietary information about the
5:11company and they're routinely sent
5:14i don't know about this letter but
5:16this is the letter they felt appropriate
5:18to send ms chung
5:20so let's read on
5:22we also have reason to believe that you
5:24have done so in connection with making
5:26false
5:27and defamatory statements about the
5:30company
5:31for the purpose of harming its business
5:34in other words
5:35they found out elizabeth holmes and
5:37sonny balawani found out
5:40that they identified erica chung as one
5:42of the whistleblowers so they're trying
5:44to stop they're trying to
5:47stop any more information coming out
5:49they're trying to deter these
5:51whistleblowers from cooperating or
5:52giving further information
5:54they want to silence them they want to
5:57protect their trade secrets any
5:59information that's
6:02proprietary to theranos
6:04all right so they're saying stop making
6:06any false or defamatory statements about
6:08the company
6:10you are directed they this these lawyers
6:12are directing
6:14erica chung
6:15a 20 21 22 year old young woman
6:19to immediately cease and desist from
6:21these activities
6:23unless this matter is resolved in
6:26accordance with the term set forth in
6:27this letter
6:29in other words according to their terms
6:31by 5 pm friday july 3rd so it basically
6:35gives her a week
6:37one week
6:38fairness we'll consider we'll consider
6:40all appropriate remedies including
6:43filing suit against you
6:46they're basically telling you they're
6:47going to sewer right filing suit against
6:49you they're going to consider it
6:55as you are aware during your employment
6:57at their nose
6:59you had access to their nose trade
7:01secrets
7:02and other confidential information okay
7:05i get it they want to protect it right
7:08as a condition of your employment you
7:10executed an at will employment
7:13confidential information and
7:15intervention assignment agreement i'm
7:17sorry invention assignment agreement
7:20dated october 14 2013.
7:23so approximately almost two years prior
7:26in which you agreed not to disclose
7:28without authorization any theranose
7:30confidential information
7:32so what they're trying to do is they're
7:34trying to stop her from disclosing
7:36anything that's confidential
7:38which i think
7:41which i think you could say would be
7:45what erica chung thinks about
7:48the technology right
7:50it's what she testified to on the stand
7:53it's one one of the basis many of the
7:54basis for why the jury i'm sure why the
7:57jury
7:59found
8:00elizabeth holmes guilty
8:04so under that agreement confidential
8:06information includes what does it
8:08include what is she supposed to stop
8:10talking about right allegedly right
8:14any non-public information that relates
8:16to the actual or anticipated business
8:20or research and development of the
8:21company technical data trade secrets or
8:24know-how
8:25okay does that include the fact that the
8:27technology doesn't work
8:29in
8:31as many witnesses testified to
8:35so how are you supposed to figure out
8:37what this means right
8:39i assume erica chung didn't go to law
8:41school even i'm looking at it going um
8:44okay what does that mean
8:47all right so
8:50indeed upon the termination of your
8:52employment remember she only worked
8:54there for a couple months i think up to
8:55six months
8:57she figured out the skinny on what was
8:59going on and she quit
9:02indeed upon the termination of your
9:03employment with their nose honor about
9:05april 16 2014
9:08april 2014 this letter was sent to her
9:11in june of 2015 a year later
9:16can you imagine you quit you've moved on
9:18and you get a letter from a former
9:20employer that tells you to
9:22i mean this letter i'm sure would scare
9:24most people right
9:28so
9:29you were specifically reminded in
9:31greeting writing that those
9:32confidentiality obligations continued
9:35even after your departure they're
9:37reminding her
9:38that she is still needs to
9:41abide by that agreement that she signed
9:44even though she's left
9:46this is to remind her
9:48that she's not supposed to be disclosing
9:50information
9:53then they say we have reason to believe
9:55that you have violated your
9:56confidentiality obligations in
9:59connection with your efforts to
10:00disseminate false
10:02and defamatory statements about fairness
10:04for purposes of harming its business
10:07well we all know that the jury didn't
10:09find those statements to be false or
10:11defend well let me let me step back a
10:14second
10:14we found we do know that the jury did
10:17find elizabeth holmes guilty of fraud
10:21okay so again this this video is just my
10:24opinion i'm curious to see what your
10:25analysis is what your take is on this
10:28too
10:29so don't forget to leave your comments
10:30and subscribe but let's move on
10:33the company is prepared to file suit
10:36against you
10:37to remedy and prevent further harm
10:40reminding
10:41ms chung again
10:43that they're prepared to sue her
10:47if you wish to avoid litigation
10:50prior to the deadline noted above in
10:52other words if we don't hear from you by
10:55july 3rd
10:58the company is prepared to sue you
11:01if you wish to avoid litigation prior to
11:03the deadline noted above you must not
11:06shall
11:07not may you must
11:10here are the terms
11:11here are the
11:12terms
11:14immediately gather and return to the
11:16firm
11:17i guess that means
11:19the law firm
11:22immediately gather and return to this
11:24firm
11:26any and all theranos confidential
11:28information in whatever form
11:30that remains in your possession in other
11:32words turn it all over
11:35are they referring to are there
11:37documents that erica chung provided to
11:39the wall street journal
11:41two other parties is that what they're
11:43implying now keep in mind they just
11:45figured out
11:47they just figured out
11:49within the last month
11:52who these whistleblowers were
11:55okay two oh and by the way pfm depot
11:58refers to the pm pfm
12:04um
12:05investor is the pfm health sciences fund
12:08which was one of the investors
12:11that elizabeth holmes was convicted of
12:14defrauding to the tune of 38 million
12:17dollars
12:18so this is stamped relating to a
12:20deposition that was given depot in that
12:23case there was an underlying there was
12:25an earlier case in which pfm sued
12:28theranos and settled okay
12:31so this document is part of that
12:34uh proceeding
12:36but it's also part of the holmes case it
12:38came in as a trial exhibit
12:41all right so anyway she has to gather
12:43all the information now she has to
12:45identify and describe with
12:48particularity any and all those any and
12:51all theranos confidential information
12:53disclosed by you
12:55without authorization or received by you
12:57since your departure for the company in
13:00other words tell us tell us what you
13:01told
13:02anybody
13:05number three identify all persons to
13:07whom you have discussed
13:09in otherwise disclosed information all
13:11right tell us who you spoke to we want
13:13to know
13:15number four identify all persons from
13:17whom you have received
13:20confidential information
13:23so who did she get information from
13:25since she left
13:30number five agree to refrain from
13:32further violations
13:36of your ongoing confidentiality
13:38obligations and from making any false or
13:41defamatory statements
13:43regarding theranos its principles or its
13:45business so in other words stop talking
13:48is that what that's saying
13:52and these are their terms this is the
13:54terms of the lawyers representing
13:56theranos
13:58this is what they're telling erica chung
14:00to do and if she doesn't do it
14:03then she may get sued
14:07submit to an interview oh okay so you
14:09not only want me to turn over everything
14:11rat out everybody who i may have talked
14:13to but you want me to submit to an
14:16interview by outside counsel
14:18not by the people who sent me this
14:20letter
14:21but by outside counsel
14:23among other things your actions your
14:26compliance with these directives the
14:28false and defamatory's information
14:31disseminated by you
14:32and the steps you must
14:34take to ratify so you have to erica
14:37chung has to submit this 20
14:40early 20 or year old young woman has to
14:42submit to an interview
14:44by outs by probably a bunch of lawyers
14:48regarding what
14:49she may have said or done
14:51regarding false or defamatory
14:53information
14:56okay
14:57number seven
14:59so not only does she have to turn over
15:00these things she has to submit to an
15:02interview now she has to execute an
15:04affidavit and again this is just my
15:06opinion
15:07just my opinion here
15:10execute an affidavit under penalty of
15:12perjury so they want to be able to use
15:14this against her
15:15she says something different right
15:17certifying your compliance with the
15:19items one through six i erica chung
15:22agree that i will you know that i have
15:24turned over all the information i
15:26identified all the people i refrained
15:28blah blah blah
15:29and the steps okay addition and oh yeah
15:33certify your compliance with one through
15:35six and additional points
15:37so in other words whatever they decide
15:39to put in this affidavit is that what
15:41that's saying
15:44to be discussed with theranos attorneys
15:46attorneys
15:48during the in-person meeting described
15:50above
15:51you got to show up where we tell you to
15:54and we're going to ask you a bunch of
15:56questions and we're going to want you to
15:57sign an affidavit under perjury penalty
15:59of perjury
16:02wow
16:04you are also hereby on notice of
16:06potential litigation
16:09again they're telling her she's under
16:11notice of potential litigation against
16:13you in connection with these matters
16:15accordingly theranos demands demands
16:18that you preserve all documents tangible
16:21things and electronically stored
16:22information
16:24potentially relevant so she is that eric
16:26has to sit here and figure out okay what
16:28is it that happened a year and a half
16:29ago or
16:30what are they talking about and where do
16:33i have any information
16:35and i have to decide what information is
16:38potentially relevant
16:41including electronic files and other
16:43data generated by and or stored by
16:46computers and storage media hard drives
16:49hard disks backup takes usbs other
16:51drives cds dvds etc
16:54or any other electronic data such as
16:57voicemail
16:58we want your voicemails too
17:00your failure to comply with this demand
17:02can result in severe sanctions
17:05being imposed on you for spoilation
17:08of evidence
17:10or potential evidence be advised that
17:14is that italicized that we are also
17:17contract contacting others be advised
17:20that we're also contacting others whom
17:23we have reason to believe have breached
17:25confidentiality obligations and or
17:27defamed the company so they're telling
17:30erica chung they're telling ms chung
17:33hey erica by the way
17:35we're also looking into other people
17:38and i get it you know it says a prompt
17:41response either for you or your counsel
17:42should be directed to my colleague
17:45sincerely yours
17:49so i get it you know lawyers that's what
17:51we do we try to protect the interests of
17:53our clients
17:54if our clients think that an employee is
17:56walked off or you know with our
17:58information using our trade secrets
18:00great send a cease and desist letter
18:03but i ask you how many times did they
18:05mention the word
18:08litigation lawsuit so let's scroll back
18:11here
18:12imagine being erica chong
18:15she's left over a year ago and she gets
18:17this little gets this hand delivered
18:20not mailed to her hand delivered
18:23hand they could have mailed it to her i
18:25wonder why they hand delivered it to her
18:28so let's count how many times
18:32all appropriate remedies including
18:35filing a suit against you that's one
18:39number two
18:43companies prepare to file suit against
18:46you that's number two
18:48if you wish to avoid litigation that's
18:51number three
18:58okay let's see
19:00you are hereby on notice to of potential
19:03litigation against you
19:04that's for
19:07your failure to comply with this demand
19:10can result in severe sanctions
19:13that's five
19:16i don't know
19:18do you think this is
19:21cease a your typical cease and desist
19:24letter
19:27what was the purpose of this letter do
19:29you think
19:30what was the purpose that theranow sent
19:32this letter to
19:35erica chong
19:37and how would you feel if you got this
19:39letter
19:40so
19:42do let me know please leave a comment
19:45please leave your questions i enjoy
19:46reading them and responding to them
19:49please do like
19:51subscribe
19:52please subscribe
19:54and do share this video thanks so much
19:56for watching i hope this was helpful to
19:59you
20:00and it's also good to see a you know
20:02what a season justice letter
20:04not one that i would send out um i'm old
20:07school we don't usually you know mention
20:10litigation five times or threaten to
20:13i don't know about threaten but mention
20:15that we're gonna sue you
20:17um you know i'm just a different style
20:21so anyway
20:22thank you very much for watching please
20:24subscribe and please do leave a comment

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