6. What Now?

The '6. What Now?' episode of 'The Dropout' podcast delves into the aftermath of the charges against Elizabeth Holmes and Sunny Balwani, painting a picture of the broader impact of the Theranos scandal. The episode opens with a recap of the SEC's charges against Holmes and Balwani for an elaborate fraud, and the subsequent criminal charges they faced. Elizabeth settled with the SEC without admitting wrongdoing but was stripped of control over Theranos and fined, while Balwani's lawyer expressed intent to fight the charges, claiming mistakes in executing a business plan do not equate to fraud. The podcast then shifts to explore Elizabeth's past through the eyes of her former schoolmate Megan, who recounts Elizabeth's determination and ambition from a young age, highlighting a memorable track event where Elizabeth would persistently finish last but undeterred.

As the narrative unfolds, listeners are introduced to contrasting views of Elizabeth's character, with former employees describing her as a bully, while Megan remembers her as polite and engaging. The episode explores the dichotomy of Elizabeth's persona, questioning whether her drive was rooted in ambition, delusion, or a combination of both. The podcast also touches on Elizabeth's distinctive voice and her step-uncle, actor Lorenzo Lamas, adding layers to her complex character.

The episode then transitions to the legal perspective, with former US attorney Preet Bharara providing insights into the strength of the government's case against Elizabeth and the potential strategies her defense might employ. He suggests that Elizabeth's best bet might be to plead guilty given the overwhelming evidence, and that Sunny might have a better position in the trial due to the possibility of portraying himself as duped by Elizabeth. Bharara also discusses the challenges of white-collar crime prosecution, emphasizing the need to prove intent beyond a reasonable doubt.

Amidst the legal discussions, the podcast reveals that Elizabeth is engaged and has been seen living a seemingly normal life in San Francisco. Former Theranos employees and associates reflect on their experiences and the personal impact of the scandal, with Michael Craig recounting an unexpected encounter with Elizabeth, who showed no signs of remorse or acknowledgment of the charges against her. The episode concludes with updates on the lives of various individuals involved in the Theranos story, from whistleblowers to former board members, and hints at Elizabeth's possible plans to start a new company, despite the looming trial.