The Investors

In 'The Investors' episode of 'The Dropout' podcast, the narrative delves into the experiences of high-profile companies and individuals who invested large sums of money into Theranos, driven by what the prosecution claims was a pattern of misinformation and deceit orchestrated by Elizabeth Holmes. The episode begins with a recount of Brian Tolbert's testimony, revealing how his firm, the Hall Group, was enticed to invest in Theranos based on bold claims made by Elizabeth Holmes during an investor call. Tolbert believed Theranos had perfected its technology, capable of running a full array of tests on a single drop of blood. However, the reality was starkly different, with Theranos only able to accurately perform a fraction of the tests promised, often using traditional venous draws rather than the advertised finger-stick method.

The episode then shifts to the story of the DeVos family, who invested a staggering $100 million in Theranos. Lisa Peterson, managing the DeVos family's investment, was swayed by the same misleading claims about the technology's capabilities and Theranos's alleged partnerships with the military and pharmaceutical companies. The prosecution highlighted how the DeVos family, like other investors, was presented with a doctored report bearing the Pfizer logo, falsely suggesting the pharmaceutical giant had validated Theranos's technology. This revelation is significant as it underpins the prosecution's case that Holmes knowingly misled investors with fabricated endorsements.

The episode also touches on the theme of due diligence, or the lack thereof, as both Tolbert and Peterson admitted to not conducting thorough investigations into Theranos's claims. This point is underscored by venture capitalist Brian Roberts, who criticizes the investors for not performing the necessary due diligence before investing. Despite the defense's attempts to shift blame onto investors for their lack of scrutiny, the legal implications of fraud do not rest on the victims' actions but rather on the intent and actions of the accused.