Elizabeth Holmes, once the darling of Silicon Valley, is under a different kind of spotlight. Now under investigation by the Securities and Exchange Commission, she is forced to answer tough questions under oath. The claims that Elizabeth had been repeating over and over again to the public, investors, doctors and her board are under fire; the woman who once had all the answers, suddenly seems to have none. And for the first time, the lawyer for former Theranos COO, Sunny Balwani, speaks out, providing a glimpse into his defense. Learn more about your ad choices. Visit megaphone.fm/adchoices
Previously on the Dropout.
Elizabeth's star was fading fast after reporting by the Wall Street Journal's John Carreyroux chronicled bombshell after bombshell about Theranos.
Once we published the story, it was pretty much bulletproof.
And eventually everything that we'd written was proven right.
The cracks were beginning to show.
But ever defiant, Elizabeth wasn't giving up.
She rallied her troops.
You, Carrie Ru is what we chanted.
I joined in, kind of like tongue.
In cheek, and went on Jim Cramer's mad money to make her case.
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's house of cards was finally about to collapse.
Anything at all you want to say?
From ABC radio and Nightline, this is the dropout, episode five the Downfall.
In May 2016, things were not looking good for Elizabeth Holmes.
Theranos was doing triage.
The president and COO Sonny Balwani was leaving the company.
Theranos said they were restructuring and he was going to retire.
According to this deposition, with Elizabeths brother, Christian Holmes, Sonny wasnt just breaking up with Theranos.