'The Dropout': The rise and fall of Elizabeth Holmes, Theranos — Transcript

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1. 0:00gM a cover story special investigation
2. 0:02into the rise and fall of the one once
3. 0:04called the next Steve Jobs Elizabeth
4. 0:06Holmes was riding high the world's
5. 0:08youngest self-made woman billionaire now
6. 0:09she's facing the prospect of decades in
7. 0:12prison for fraud our business
8. 0:13correspondent Rebecca Jarvis here with
9. 0:15this exclusive report good morning
10. 0:16Rebecca good morning George a truly
11. 0:18remarkable story at the height her
12. 0:20company was worth nearly ten billion
13. 0:22dollars she attracted some of the most
14. 0:24powerful people in government to her
15. 0:26board and her blood testing technology
16. 0:28was inside of Walgreens stores but it
17. 0:31all came crashing down and this morning
18. 0:33for the first time you're hearing from
19. 0:34Elizabeth Holmes under oath this is the
20. 0:38testimony of Elizabeth Holmes going on
21. 0:40the record in San Francisco California
22. 0:41nine o'clock a.m. on July 11 2017
23. 0:46because those please raise your right
24. 0:48hand
25. 0:49do you swear to tell the truth the whole
26. 0:51truth and nothing but the truth I do
27. 0:53this is Elizabeth Holmes seen here in
28. 0:56this never-before-aired testimonies once
29. 0:58a fast rising star in Silicon Valley she
30. 1:01sits across from 12 attorneys under
31. 1:03investigation for an alleged elaborate
32. 1:06years-long fry did it concern you that a
33. 1:09number of tests weren't working on
34. 1:12fairness assist devices now facing up to
35. 1:1620 years in prison
36. 1:18Holmes has pleaded not guilty it's a
37. 1:20stunning fall from grace for the woman
38. 1:22who is once poised to change the world
39. 1:25this is a revolutionary company that
40. 1:27threatens to change health care there is
41. 1:29no better story than the young woman at
42. 1:32Stanford who dropped out because she
43. 1:34wanted to save people's lives she was
44. 1:37named one of Time Magazine's 100 most
45. 1:39influential people wired called her work
46. 1:43mind-blowing if she had made this work
47. 1:45she would have been the next few jobs
48. 1:47her technology promised to run hundreds
49. 1:50of tests from just a dropper to of blood
50. 1:52this is the Walgreens it was in
51. 1:55Walgreens not only do they fool the
52. 1:57investors they fooled patients they
53. 2:00fooled doctors
54. 2:01we're breast cancer patients like sherry
55. 2:04Eckert got bad results no one from
56. 2:06fairness ever called me to apologize no
57. 2:11one but it all begins to unravel when in
58. 2:14this footage which you're seeing for the
59. 2:16very first time Elizabeth is finally
60. 2:18forced to answer two difficult questions
61. 2:20under oath with the Securities and
62. 2:22Exchange Commission did it concern you
63. 2:24that a number of tests weren't working
64. 2:27on thoroughness devices suddenly the
65. 2:31woman who always seemed to have all the
66. 2:33answers we are the only lab company that
67. 2:36is actually really focused on leading
68. 2:39with transparency now had none I I don't
69. 2:42know specifically I'm not sure and I
70. 2:45don't know exactly I just don't know
71. 2:47there were those hundreds of tests her
72. 2:49signature technology could supposedly
73. 2:51perform at Walgreens and how many
74. 2:54couldn't run at that time in 2010 I I
75. 3:00don't know exactly what the number was
76. 3:02there was probably tens of of tests
77. 3:09so when you say tens of testing me in
78. 3:10something less than 100 yes
79. 3:12a dramatic claims she pedaled to board
80. 3:14members including former Secretary of
81. 3:16State George Shultz with darkness is
82. 3:19technology deployed in emergency rooms
83. 3:23hospitals and provider offices no it was
84. 3:27a fairness manufactured device ever
85. 3:30deployed in the battlefield no was it
86. 3:35ever deployed in
87. 3:37Kocher for the first time the defense
88. 3:40representing the former CEO of Thera
89. 3:43knows on the record in an in-depth
90. 3:45on-camera interview it seems like a
91. 3:47central component of your case is that
92. 3:50Thera nose was on the right track and if
93. 3:53they had enough time they would have
94. 3:54gotten it a hundred percent right I
95. 3:56think eventually the company would have
96. 3:58been a great success if it had been
97. 3:59allowed to run when it comes to our
98. 4:01health people want to know it's a
99. 4:04hundred percent accurate day one they
100. 4:06want to know that what's inside of a
101. 4:09Walgreens or at their doctor's office
102. 4:11can actually do what it says it will do
103. 4:14you know Rebecca of course that's true I
104. 4:16think though the unfortunate thing is
105. 4:18that in our system of health care
106. 4:21there's mistakes that are made every day
107. 4:23there's no perfect answer Elizabeth
108. 4:27Holmes is now awaiting trial she faces
109. 4:29criminal charges from the Department of
110. 4:31Justice she's pleaded not guilty she is
111. 4:33back at home in California and some
112. 4:35insiders tell us that right now she is
113. 4:37already seeking money to start her next
114. 4:40company I wish she was such a rockstar
115. 4:42at the height of all this and getting so
116. 4:44much attention and in Walgreens and this
117. 4:46touched so many lives okay we'll see a
118. 4:49lot more report tonight on Nightline it
119. 4:51is really something