« The Dropout

The Whistleblower

With Theranos technology now being used by real customers, many employees are at a breaking point. They are horrified by what they believe to be widespread deception and dangerous practices, but Theranos has implemented increasingly extreme measures to stop them from speaking out. As the threat of litigation lingers, one brave and unlikely whistleblower, with close ties to Elizabeth Holmes and the board of directors, emerges.

Support this podcast with a review: http://bit.ly/2REHEs9


Recommended listening:

-- No Limits with Rebecca Jarvis: Rebecca speaks to bold and influential women about their paths to success, their choices and tradeoffs along the way, and their pitfalls and lessons learned. Conversations focus on practical advice and never-before-shared wisdom from across industries. Plus, Rebecca always asks her signature question "What's the worst advice you've ever received?" Apple Podcasts: http://abcn.ws/nolimits | Google Podcasts: http://bit.ly/2Uc8Dbo

-- Start Here: The daily 20-minute news podcast from ABC News. Apple Podcasts: https://apple.co/2pvq8Ws | Google Podcasts: http://bit.ly/2JZSK70

-- Nightline: Listen to full episodes of ABC News' award-winning late-night news program. Apple Podcasts: https://apple.co/2Dq57Ew | Google Podcasts: http://bit.ly/2HEg7mb


The Dropout is produced by Rebecca Jarvis, Victoria Thompson, and Taylor Dunn and is a product of ABC News Nightline & ABC Radio. More info: http://www.abcnewspodcasts.com

This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Previously, on the drop out, there knows his alleged deceptive practices had created some dear a fine health scares. The first thing that came to my was: oh, my god. It's recurring there could be a tumor broil somewhere, no one from fairness ever called me to apologise, and, in my opinion, that's the least you can do
when you mess up so badly, but Elizabeth was now a star. Ladies and gentlemen, please welcome the only person I know it makes me feel like a lazy, Bastard Elizabeth HOMES and a wealthy one and tat at least on paper, with their induces valuation loose to ten billion dollars. Is it a special thing for me to be here, especially with this group of people in and thank you, but those who had seen Elizabeth up close felt? It was only a matter of time or she'd be exposed. I literally wouldn't google farragos scam wondering why, when that information was gonna come out most would it may not be today may not be next week next year, but the truth will come and remain easy radio entangling. This episode for the whistle blower,
I was probably the first person to really like drink the Kuwait. The tongue was a senior in college, Agnew, see Berkeley when she first heard about their knows. She was closed. Graduation with a degree and molecular and sell biology. She went to a career fair on campus and thoroughness. Was there There is a long line for this company and I really hit it off with iter. Recruiter and she said you know I fear graduating like you're at a graduated you're looking for a job, and you are looking for research and development position within the sciences. We have spots for you Erica's now in her mid twenties with long Brown here, she's laid back and not the kind of person who puts on airs a former lab directory spoke to us as Erika was one the smartest people he worked with apparent else, so I gave her my resonating out the clear, fair and then almost instantly. I got it. I got an interview it, exciting, to talk about a kind of how you can apply the science
and then all changing the world yeah, that was the big pool, was changing the world and not only that but making healthcare more accessible, making it more affordable and doing. Thing that never or no one had ever done before. Even though, Erica had to other offers she chose. There knows she really admired Elizabeth and the companies mission Erica began working at the company as a lab associate in October? Twenty thirteen right off the bat she says you could feel it was an extremely secret. Place, and it was a sort of instilled in us in our on boarding like we need to keep certain things secret, you're not allowed to talk to you. Your friends and family about what's going on here, When barricade certain portions of the lab, so you can see Erika says she wasn't even allowed to tell people where she worked, which didn't as far as the young, ambitious staff seem to be hold up their day and night, the majority of the people that had actually worked with the technology ten
the recent graduates, tended to be people that didn't have a lot of experience. But many thus work twelve, sometimes sixteen hours a day, it was a chaotic environment former lab director puts it. There are NOS, looked like it was run by mad scientists. There were, acres and chemicals scattered across the labs, and even though the company was now about ten years old, still felt like a start up seniors software engineer, Michael Craig, we first met an episode to remembers frustrations from that time paper. Hurt a lot of complaints by project managers about having to change. Actions constantly having everyone's olenin there's no no ever made spell on this and it felt like it was just being mismanaged but Erika, says speaking up, wasn't really an option. People
Mary scare enough of upsetting Elizabeth HOMES and am settings honey about wanting what makes you say that why were people afraid one people plainly saying that they were scared of losing their jobs to people working insane hours, three, the kind of blame game where, when things were, go wrong. Everyone was looking to point to some one to blame people I'm trying to understand was actually going wrong, but people are just getting upset about what's going wrong, Erika who was working in the lab that processed patient samples became more and more disheartened, so you basically start out with a base test. So you know what the expectation is writ. So you take the sample right from that person and you put them base test in your machine. Just to say, okay. We know that it's working, we know that it's cleared and what happened, and it felt and kept failing. I kept running it
over and over and how it was handled with totally blooming away Eric says she told a supervisor things worth working the way she describes. It reminds me of a call to the cable company. The type where they ask you, whether you ve unplugged your set top box? When Superman She'll remedies didn't work. This is how Erica says Superior suggested, resolving the problem, show you how it got resolved. Is they took out data and they said all while this is like the best two out of six, the way that we can have average thing, those near you're, saying essentially that you were cherry picking exactly information right in order to make me information makes sense right, This, as you may have gathered, is a big. No now here's clinical pathologist Doktor Stephen Master, explaining why
that it would never be appropriate for someone to do that kind of quality control. If you cherry pick the data and only fit the quality controls that look like they fit so that you can just keep going without actually doing anything to the fundamental problem. Then you are again not doing quality control in the correct way. Erica says she raised these issues directly with Sonny foresaw the lab operations and he gettin raged here. So how do you like working for this company and in how are things going for you so far in this, and I really enjoyed working for this company? But there are a lot of problems. We're having a lot of issues with our quality controls. And then he D sort of lost it. At that point, Well, what makes you think that we have problems What was your training and statistics? I'm tired, people coming in here and in starting fires where there are no fires, and problems when there are no problems. But really unsettled. Erika was the fact there knows was running these tests on real people.
We could have given all these different excuses, but it took the problems warrant being fixed in a cab continuously: processing patients, meaning those patients were taking information that you were providing to them and making medical decisions. With that formation. Cracked Erika wasn't the only one who noticed issues just before she started a new employ with close ties to Elizabeth the company Elizabeth in my grandfather's living room, wishes on Stamford Campus that way The fall of two thousand Levin, that's Tyler shots speak here in a deposition he's the grandson of there Us board. Member George Schulz, the former Secretary of State Tyler, who's about six years, younger than Elizabeth remembers the first time he met her when he was a junior at Stanford. I was in love with her vision, I thought she was brilliant.
I was totally sold on the idea of changing the way by testing is done. Tyler is now in his mid twenties. He has sandy blonde hair and looks like the kind of all american kid you find out of college campuses, he's friendly and affable and ask for summer, internship at their nose was eager to work their full time. Life first day was the day after they opened the first fog rings wellness centre. Slight Erika Tyler started out bright, eyed and enthusiastic about their noses vision, but on his very first day, Tyler as the head of assets or blood tests, development was fired on the spot, Elizabeth after asking too many questions that colors at the tone for the entire scientific community within their knows, where work
smart was not valued, but working hard was it's worth reminding here, Tyler's grandfather, George Schulz was extremely close to Elizabeth he's the one who helped bring so many heavy hitters tour board of directors He or she would go, have lunches or dinners with my grandfather all the time, and I was there for some of them- the former sect precarious state and Elizabeth met through mutual friend at the Hoover institution humor. She shuddered warfare did a double, as he would later tell it. He could. See the momentous potential for her technology right away. Referred going to be a revolution in preventive medicine, and that is going to have a big impact on quality of life and on the force of the health care system. He and Elizabeth would connect you'll early in the first year of knowing each other. He says they and almost thirty times and Elizabeth became
sort of family friend who comes to Thanksgiving dinner. It was an uncommon for Elizabeth to talk up their announced that at these celebrations, like every time she came to our family Christmas day? or other family events like that should always talk about how their nose was more accurate than existing methods, Tyler, says his experience at the company didn't match the image Elizabeth was selling his family. He especially didn't like she was paddling to his then ninety three year old grandfather, like Father would go, get fairness test done and you haven't needle in his arm and there'd be You no excuse about why they needed to take a Venus draw for him, but you know for everybody else: it's a finger and he continued to buy into that. Also told him that, most of it, ass, one even run on their nose platform, so Not only were they can run through, hundred tests in one single drop of blood, but they weren't even running mostly tests on the fairness devices. He told me that Elizabeth told him
The only reason they have third Pray Devices is to validate their own technologies, but that no blood tests were run on those devices. I worked and I, while I was working there, we only ran seven tests on that. There are no devices. She also made it sound, like the devices can simultaneously run multiple tests, but in reality each device, was calibrated to run one thing at a time, listening to Tyler speak. You can imagine the frustration how difficult it would be to convince grandparent they're wrong, especially when that grand Parent has money and reputation on the line. You also said that MS homes was manipulative. What do you mean by that? I think, she's really get at telling you what you need to hear to keep going. She did that with me to some degree, but she did that a lot with my grandfather. I she,
became really close. My grandfather- and I felt like she just she- used her personal relationship with him, too I guess a business advantage and your shoe and just like he'd hen, and you know what maybe busily feeding everybody things artists completely, factually not true. There's a point Tyler's deposition, where he describes a lengthy list of the problems he says he witnessed happening with the fair announced machines from what He says the devices sounded more like a failed science experiment in a state of the art
adequate pension. There was this mechanical armed had a pat on the end that would go and suck up different regions, often times it either when pick up the right tips and then, though, usually fall on some time during the tacitly fall into the bottom of the machine, and it would get in big ears dislike wire. I think it was just like a close here beside doors when closer you'd have to safety at sea have taken, it shows changed. The resolution was temperature sensitive, as was TAT says. Most employees were well aware of the problems, a lot of people with promotion, joke about how for they were. I went out with some housemaids, and I saw some private. Manders. There, one and was heading on. One of my friends were saying that he was clean, LCD Free there
we're making jokes, but how we didn't actually now because he was tested with the fairest vice. Joking aside, there were real stakes here. People were getting inaccurate result and potentially making dangerous decisions about their health. Everyone was concerned that we weren't giving patients the right results To your knowledge? Did Miss Hall No, that farragos could not do all those she National Erika say she began documenting the problems she encountered. She was really concerned with quality control failures. These are happy really frequently? I remember she was like keeping a pretty precise tally of how often these were failing. I wouldn't put up error reporting sheets by the machines, and it would be taken down by people want to actually know the number of times that we were having issues and was probably because they were starting to real, as we were having them so frequently Eric
says a manager cautioned her against reporting the issues he told me that he told her don't speak up. Speak up then you are on the right. Are you don't want beyond on the reader? Do you form impression that it was not acceptable, are encouraged to ask questions yet thousands. People knew they would say they go, don't speak up or you get fired, I mean yet. There is definitely a call here I don't know exactly how it started, but it was definitely their arrogance as sunny got wind of the fact she in Tyler we're talking so sunny. Confronted her there was should that I got was basically, you need to sit down and keep your mouth shut and you don't know what you're doing About and you need to do the job that I hired you for which this process, patient samples, and that was when I was like there's this is this is now an environment. This is not a culture where they really care about. You know what consequences this might have on patients Erika felt her concerns. Were falling on deaf ears but Tyler.
Who she was in a unique position, given his family connections, even with some political cover he wanted to be absolutely certain is: can turns were valid before raising them with Elizabeth, so under an alias he reached out to the New York State Department of Health, I didn't even say where I worked initially, I wanted to get the information from but if you really understood it about whether what we did was okay- and I wanted It- do you not from somebody inside their nose but from somebody who didn't have skin and essentially who knew what they are talking about. Tyler described. Would he and Erika had been seeing apparent house and sure enough? The regulators told him in the sound right. They advised him to file an anonymous complaint, but they said I would like to know the name of the company we can work with them to improve the practices. So then, I gave him the name Let us give them the lists of the tests we ve been running. Tyler says you
like the issues in an email to Elizabeth. Actually like I liked Elizabeth, and I thought we could- it changes by new the hard conversations have she wrote back Tyler. These are very, very serious comments and allegations that you're making sure I want to say she'd, have the teams go through this line by line? So it would take some time before I get back to you on this but rather than a follow up from Elizabeth what Tyler? God was a response from Sonny. I think sending an email like this from Elizabeth when not but gave her an edge, and I think Our relationship with my grandfather was so really important to her, so it made more sense to have something spun. Take a listen to this extra sunny rights, quote that reckless comment and accusation about the tag ready of our company. Its leadership at its core team members based on absolute ignorance, is so insulting to me that had any other person made these statements, we would have held them accountable and the strongest way the only
these, and I have taken so much time away from work to address this personally is because you Mr Schulz is grandson, the? My email on this topic I want to see from you going forward, is an apology. Tyler was done instead of an apology. He gave his two weeks notice. Are you tired of being tired? You ve gotta, try a purple mattress the only mattress with the purple grid. They gives you the soft comfort you crave and the firm support you need. It works for anybody type in any sleep position, sound too good to be true, feel it for yourself with a hundred night risk free trial and Ten year warranty listeners will get a free purple pillow with a purchase of a mattress. That's in addition to the great deals they're offering statewide just text dropout to eighty thousand four hundred and eighty eight. The only way to get this free pillow is to text drop out. Twenty eight thousand four hundred and eighty eight, Tyler's
as there are NOS asked him to leave that day after time some loose ends. He says he waited around at a conference room making himself available in case Elizabeth wanted to me. He was told Security would come to escort him out but they never did eventually you just stood up and left on his own. Then he broke them is to his grandfather. She said that the list told him that I had quit in a really dramatic and unprofessional and inappropriate where he said they're trying to convince me that you're stupid, but they can't do that. They can help convinced me that you're wrong- and in this case I do believe you're on you're that night Tyler went to his grandfathers for dinner and invited Erika Erika was really frustrated about how this was handled is well. She had similar concerns she was trying to face. We find a voice, and I said I don't know. If anything will happen, but I know my grandfather always listen to you, Joe
shelters home is on the Stanford Campus in a row of faculty houses. It's there He stories slightly set back from the road with green bushes, framing the entrance of a stone walkway leading to a blue front door. Tyler Erica made their case over dinner Erika shit. What she'd seen happening with real patients, samples George His response was startling. Grandfather said that there are those devices were currently being used in that it back helicopters. He said he said he didn't say who told him that whenever they killed gas, who do you believe, told I would assume that Elizabeth told him that he also said, serving as an operating rooms. I remember Eric now saying that that can possibly be true because, devices were barely working within the walls of their nose. He said that highly qualified people are telling him that This is the real deal and others gonna, revolutionise Medicine Erika in time
left the dinner feeling defeated Erika quit the next day Seven months after she started at their house, while the two were crestfallen, What they didn't know was that someone outside their else was taking the first critical look at the company legally run Doktor John, I united as a professor of medicine at Stanford University. He lives in near their noses headquarters. He litter we walked by the building one day and saw the sign wondered what it was. I was just passing by its headquarters practically B. Of a greek origin. Fairness sounded like a greek term that was very weird The terms that come to mind are Tito knows, which is tyrant and senators which is death. So I said what should accompany want to how such a name first met doctor I united at his office Stanford. There are both us and stacks of paper everywhere. You look
the whiteboard scribbled with math problems. He's got a moustache and a big smile, and the day we met he was wearing a white Blazer white shirt and dress pants with a rat in great. I google him it's the same outfit that comes up and whilst the images soap after randomly passing the thoroughness headquarters, he says he couldn't help but dig deeper. Basically, I'm looking four papers that have been peer, reviewed that have been published and respectable journals and that convey how this is done and what did you find practically I've Nothing Doktor United tells me why that such an issue show the three basic premise of science is that you need to have scientific documentation of the evidence that supports your claim and if you of extraordinary claims extravagant claims like in the case of fair knows, they were promising that they have some
that would revolutionise the entire healthcare system in it. It would be completely disruptive type of innovation, that the world had not seen before you for even more evidence a year, you're not happy just to see a few papers with very questionable. Then send a large of question marks and what is typical when it comes to the amount of papers that you would see just on that one thing alone for some time: there's like tens of thousands of papers, so he took it extraordinary step So I wrote a paper in a scientific journal. The journal, the American Medical Association where I just presented my experience that this is a start up, that is missing to disrupt the entire medical care world and the sea always highly respected and everything's that this is the way to go, but our scientific
Literature doesn't include any evidence and it was published early in two thousand fifteen at a time when No one to my knowledge had really question fairness. His colleagues applauded the move. There are no six acts. On the other hand, weren't happy After I united says he promptly got a call from their noses General Council. I think that they would Trying to win me over to their side and was actually in Rome and it just When that I was outside the tempo of romantic, a masterpiece. Of the renaissance, but it is hidden. In a larger structure, so you can really seed from the outside. You need to go inside, and then you see a spectacular building It seems very similar that foreigners was saying as you know, if you come inside of you could become an insider We will see this masterpiece. That is the best thing that has happened to diagnostic testing by
If you're an outsider, you will not see anything and you're, not to see anything. How did you leave the kind frustration on foot. Really terms with with a plan that we will keep in touch, have me meet with Elizabeth HOMES and try to discuss further tried to convince. That they need to publish in the scientific literature and you may be sure, to convince me that I should co author of paper with them. What happened next? That didn't materialise? practically? There was no follow up to that suggestion that the that meeting would happen around this. In Time John Kerry, real a Wall Street Journal reporter in New York was getting interested and thoroughness to allow John, is a dog it investigative journalist with a twenty year track record. Like he's broken all kinds of stories about financial meltdown That's a red profile of Elizabeth HOMES in December two thousand fourteen written by cannot let in the new Yorker
and one of the first things that struck me as off in that story was this notion that she had dropped out of Stanford with just two semester: of chemical engineering classes under her belt. And gone on to pioneer ground breaking new medical science to to really value in medicine. You have to have the formal training which often means going to medical school, and sometimes it means getting a phd afterwards. And there's there's a reason that most Nobel winners in medicine or in their sixtys when they win. The Nobel John had a feeling some, thing was seriously amiss, but it was tough to get sources to talk on the record. Threat of litigation was always in the air. When you worked at their nose and employs knew it was not an empty threat because Elizabeth had sued, employees in the early years of the company,
also knew that starting in two thousand and eleven, the outside council for thoroughness, was David boys, even boys by the way is one of the least, trial. Attorneys of his time represented Al Gore and the presidential recount of two thousand. You later helped pioneer. The legalization of gay marriage, but he's also known as an intimidating corporate litigator, and he was there. On time attorney of Harvey Wine steam, for there are no simple She was a scarecrow. They thought that if they expressed their misgivings either internally or after they left two regulator or a reporter It would be David boys in his law from that would becoming after them. Employees, like Tyler Shalt, knew the stakes of talking. He was seriously worried when he crossed John Kerry Ruse radar. I noticed the detract on my profile on Linkedin must have heard from other employees. There was beginning to poke around and make calls so I
held him, I ignored it for a few weeks. I didn't hear back for four weeks waiting to take you so long I was afraid all this would happen. Then eventually I got really curious about what he knew and then one day I pick up the phone and its Tyler, and then I got section he was terrifies. Well, was calling me from burner phone because he didn't want our communications to be traced. Tyler says John was very. Then say John, had a lot of information and the right track record felt like giving him more information would go towards correcting a lot of the problems that I saw. I was there which would ultimately save some some patients from getting incorrect medical result, I guess I felt like John would actually ask the right questions and it wasn't long before their noses legal team sprung to action in late June, twenty fifteen,
John was preparing to publish his first article about the company when attorney Boys came in for what John recalls was a marathon five hour meeting at the Wall Street Journal came, and we had a meeting with them in which their demeanor was very aggressive. They proceeded to tell us that I had misappropriated their nose. Trade secrets and that I needed to destroy them or return them immediately. You respond to that. I mean we made clear that that wasn't gonna happen. We try to keep things court even though they were pretty aggressive. Essentially, we started through these eighty questions that I sent them in advance and the basic question was: Do you use commercial mission is made by third parties or some, if not most, of your tests,
and if the answer was yes than they ve been lying to everyone, and also how many tasks do you use proprietary fairness technology for in all the tests reliable and when I started asking those questions, they wouldn't answer invoking trade secrets and become a rent, went around in circles for hours. Five hour meeting road and they I can tell you whether they were using outside machines to do what they claimed. Thoroughness machines were doing, all they would concede to is that day they did own some commercial machines and these they claim to use them only for comparison purpose, internally, essentially for research but they wouldn't comment on whether they use them to test patient samples. It was frustrating, but it was that the stonewalling was also a sign that I was on the right track, and so
I came out of that fine. Our meeting feeling like we were on the something big and I was just going to redouble my efforts so the meaning ads they haven't answered. Your question is completely Is there still a threat hanging over your head? Well, David boys lets the snow during the meeting that we're gonna be receiving a letter pretty soon making explicit fairness, legal stance we turn off. We get that letter. A couple these later. It again reiterate that I essentially stolen thoroughness. Trade secrets in that I need destroy them, more return them. Twenty three page, on letter comes a few days after that. That letter is essentially, you know a searing indictment of me as a journalist and of my methods as a journalist is it's an attempt to really get the journal to disavow me and at the end of that letter the threat is very explicit. That fairness is going to sue. If we proceed, the story. Elizabeth was up buying her own pressure even pub
shaken up ad in the Wall Street Journal before John could publish his story in it. She wrote there was ushering in a new era of preventive care, she argued all I'm tests should undergo review by the Food and Drug Administration Thoap. Ironically, just single farragos test. The one for Herpes was actually approved by the FDA. I think it was that they pretty much I had already filed my my story to monitor and I went to his office and I said you know, I think we need to speed up the process here, because not only is she continued to two given their use and use our own newspaper as her mouth peace, but we new that she was putting this pressure or this pressure on some of the Mai confidential sources, and I felt very concerned, John Synonymous Sources, Tyler and Erika, say they were also feeling their noses heat they
one sit outside my work, your new job at my new job and it scared my own coworkers. They were curious like why as a psychiatrist been sitting outside of our our lab for such a law. Time that they had waited to walk me to my car, because I was the last one working that night as Erika left the office She says a man walked out of an suv and handed her a threatening letter from David boys. The letter that they had addressed was an address no one knew I was living at The temporary homesite freaked me out like. Are they following me? How did they figure out where I lived, because even my own mother had not known this address the letters there are no had reason to believe Erika was disclosing quote trade secrets and they threatened to sue. If she didn't stop she consulted a lawyer who advised her to report what she'd witness to regulators and Erika wasn
the only one on the companies radar to fair and house of a private investigator? Follow you at any time to knowledge, yes over the summer like strange in two dozen fifteen, yet Tyler pretty facing pressure from their nose and his grandfather says when his parents found out he'd been speaking to a reporter. They were. Curious. My dad was on the phone with my grandfather and then got off the phone and he asked me have even speaking with Wash regional reporter, and I said yes. And he said they know you're totally and he was. He was more angry with me than I had ever seen in my life.
He said they know you did it like how like. Why would you like? You know how aggressive they are? Why would you do this? They're gonna ruin your life. Basically, Tyler then called his grandfather, and he said well, fairness knows that you ve been speaking to a wash regional reporter, and I said I don't know. Why do you think that? And he said in any case, there is a one page. Confidence the agreement, and, if you sign it, they will make everything go away, how about you meet with the fairness lawyers tomorrow morning and you signed this agreement, and I said that sounds fine, but can I can talk to you in person first, without any words around, and he said yes that evening, Tyler stopped by his grandfathers house on Stanford campus? He wanted to reiterate his concerns about the company. According to Tyler George,
said. There are no had undeniable proof. His grandson was leaking information to tell me that there is complete and says that they know came from my email sign. I'm saying I don't know how that could possibly be true and then he just says well again like whatever the case may be, will you just signed this one page document to make everything go away? yeah. I will definitely sign that and then things took a shocking turn and then he said there are two Turnus lairs here right now can I go get them and I said, yeah, go get them all signed. The one page, seven b to lawyers someone else will? Where was a reaction to learning that I totally surprised they come down and they don't come with me, page confidentiality agreement, they come with. Paris to appear in court, two to mornings later, I think
a letter signed by the boys. His step grandmother became uncomfortable. In her grandson was being ambushed. George showed escorted the lawyers away, but the drama wooden end there grandfather would say like things like career will be ruined if this article comes out, as all of this was happening, there was chaos back at their announce according to employees. I definitely think that was a very unexpected super as for them, and definitely not something good, to put it mildly. Early on a Tuesday morning in August, twenty fifteen FDA agent, descended on their nose for a surprise. Inspection of its lapsed, employee, Michael Craig, was in the building. Is it all went down, they came in through the you're an someone from the legal department was notified and came out and ordered them quickly into a room where they were.
Showed them into one of the conference rooms. Some employers were there with all the heart pounding moment when the agents entered looking very official and determined, but there was First. In an era knows who did seem to take the whole thing in stride, at least on the surface, it was Elizabeth Border, my friends from there said to me: you know if you really want to believe something you will do all necessary gymnastics. You need to do in order to believe it, and I kind of feel that that's fleetly, apropos of of Elizabeth HOMES after almost two weeks of top to bottom inspections, the FDA found fourteen compliance issue. There are no said it would resolve most of them in seven days, whether they actually did the FDA will not confirm the welfare NEWS was dealing with the FDA. Tyler we're still dealing with their nose. He lawyers to fight it out with the companies attorneys costing his parents close to have
a million dollars in legal fees and he kept talking to John Kerry Room. Despite the tremendous stakes family relationships his career, his future. And in the end I am able to publish in large part thanks to Tyler on October fifteenth twenty fifth, in the Wall Street Journal round the first of many explosive thoroughness articles with John reporting that the company It was not using its own technology for all the tests it offers. Instead, according to the article, they are knows, was using traditional machines bought from companies like Siemens to run a majority of its tasks, so once we think we publish the story was pretty much bullet proof it would. Stood the the counter attacks and then regulators acted and eventually everything that we written was proven right back at their house Elizabeth called in all hands meeting employees crowded into the cafeteria packing into boots leaning against, whenever they could Michael Craig remembers,
Elizabeth and sunny standing in the center of the room with a microphone and speakers. They told him Please they were under attack John Kerry it was enemy number one. They said he was doing bidding of big corporations should definitely did thing where you unite people in common opposition against someone else, which is probably can read, and out of war. Then a chant broke out, do you carry railways what we chanted. Drawing any kind of like tongue in cheek, and what did you think when you were chanting believed it when you really committed to something, you really want to believe something, I believe you'll do whatever you needed here, believe it did. You apologize guess I haven't sergeant some fairness. Employees even created a video game. John, was the village I'm playing
Space invaders. There are no sedition, your sound of him playing it in this video from the walls eternal by shooting his own likeness over and over again with little Nano Tainer bullets the invader, and this version The game is me, along with some zika viruses, the a machine gun at the bottom of the screen. Is there? as many lab blood testing device and the bullets shooting or its little nano tainer vials. You know it's it's another one of the crazy twists and this crazy story that has essentially consume the past year and a half years of my life sure the troops were behind her, but you're such a crushing blow of bad publicity, other Theo's might have stepped down or been forced out, but not Elizabeth Chance ever defiant. She went on
Jim Kramer's mad money in her signature, black turtleneck, to make her case. Thank you was revived Tell you in all my years I can't recall a private company that, as a candidate never heard of getting this kind of attention and scrutiny. What do things go and wonder whether this is what happens when you work to change things. First, they think you're crazy. Then they fight you and then all of a sudden you change the world, but Elizabeth next battle wouldn't be in the court of public opinion. No, the next phase of this fire answers was about to go down in the court, law. This is an investigation by the Securities and Exchange Commission and the matter of thoroughness to determine whether there have been violations of certain provisions of the federal securities laws, Next week's episode of the drop out Elizabeth
and our partners sunny are finally forced to answer tough questions under up to the concern you that a number of tests, one working on thoroughness devices, I know that we made mistakes and for the first time ever, you'll hear from Sonny's attorney glimpse into the defences argument. I think this was no secret, that there was doing traditional blood testing, except for the fact that the advertising itself suggested you could have your task done with a prick of blood. Will that was I never said that the only way it would go when it comes to our health people want to know it's a hundred percent accurate day one. They don't want to feel like the technology that they're using is going to work. Ten years from now, they want to know that what's inside, of a wall greens or at their doctors, office can actually do what it says. It will. Do you no Rebecca, of course, such true. I think, though, the unfortunate thing is there's no perfect answer this mistake.
That are made every day, but that's not fair Elizabeth HOMES, David Boys, Tyler Shalt Sunnyvale money did not respond, declined to foment George old sent us a response in January twenty nineteen more than three years after the events described in this episode, he said quote: I learned, had navigated a very complex situation in ways. They made me proud some material, including court depositions, were added for clarity and time the drop out
written in produced by Taylor, done Victoria Thompson and me, or editors, are Chris, Peru may and Evan Viola, who also green, and our themes on our researchers are Victor or donors in line with our work by Teddy blinks ships, and why the drop out is a production of Nightline. Abc radio and tv sees business unit for Nightline Jenna moment. As the supervising producer and Stephen maker is the executive produce.
Governing runs ABC Specialised units. Thanks to the team and Amy see radio into the Wall Street Journal John Kerry Room after a bad blood was investigative reporting. First expose this remarkable story, you sure to subscribe to the drop out podcast, and if you like, what you heard, leave us review. Listen to new episodes. Everyone's plus join us this Saturday for a special behind the scenes. Look at the drop out will be speaking with ABC stealing your past start here, explaining exactly how we ve with this show together and revealing some of the reactions we ve gone so far, including people who worked with Elizabeth. So if you want to hear that subscribed to start here- and they also include an exclusive club of next week- show
once upon a time we were introduced to a world. Unlike any other, now promise me we do this together, but now a new journey lies ahead. Ginger z come with me as we go inside frozen to with the animated, composers and storytellers who are bringing the next chapter in the frozen saga to live in. Frozen to a behind the scenes. Look at the making of frozen to from ABC Nbc. Listen now for free on your favorite podcast app.
Transcript generated on 2019-12-11.