Former Safeway CEO said that the Theranos delays raised red flags as an emotional juror is dismissed from the case

Former Safeway CEO said that the Theranos delays raised red flags as an emotional juror is dismissed from the case

October 8, 2021: On Wednesday, Former Safeway CEO Steve Burd testified in the Elizabeth Holmes criminal fraud trial. Repeated is del with Theranos’ blood-testing machine raised red flags about his company’s failed multi-million-dollar partnership with the healthcare startup.

“Deadlines were continuing to be missed, and we often weren’t given an explanation for that,” Burd told the jury.

“I asking, ‘Give me some details here.’ So that was the frustrating part. We always tried to help them any way we could,” Burd said.

Burd’s testimony came on the exact same day that a juror in the trial disclosed that she would have difficulty sending Holmes to prison, prompting the judge to excuse her from the case.

Safeway spent over $300 million to build clinics in hundreds of its grocery stores, anticipating the blood-testing technology. The idea of the partnership is that “while you’re shopping and before you leave, you’re gonna get the results of that blood test,” Burd said.

Burd served as CEO of Safeway for two decades. He testifies that he was initially charmed by Holmes and her vision of creating cheaper and faster blood testing technology for his customers.

“I was very impressed,” Burd added. “There are very few people I had met in the business that I would say are charismatic. She was charismatic, she was brilliant, and she was doing one of the hardest things you can do in a business, and that is to create an enterprise from scratch.”

The former Theranos CEO fights 12 counts of wire fraud and conspiracy to commit wire fraud. Federal prosecutors allege Holmes and the top executive, Ramesh “Sunny” Balwani, engaging in a multi-million dollar scheme to defraud investors and patients. Holmes and Balwani have stated not guilty.

Burd testified that he viewed the partnership with Theranos as an opportunity for Safeway to expand into the healthcare world. Although, repeated delays with the miniLabs, Theranos’ blood-testing machine, are raising red flags.

Burd testifies that Holmes demonstrated the device at a board meeting. They ran a prostate-antigen test on a board member. Burd is recalling that “blood was drawn, it went into the machine, and we never got a result.”

Burd also testified that Holmes would not disclose that she was in an intimate relationship with Balwani.

“It just raises the question of what else is hidden,” Burd said.

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Former Safeway CEO said that the Theranos delays raised red flags
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Former Safeway CEO said that the Theranos delays raised red flags
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Former Safeway CEO Steve Burd testified in the Elizabeth Holmes criminal fraud trial. Repeated is del with Theranos’ blood-testing machine raised red flags about his company’s failed multi-million-dollar partnership with the healthcare startup.
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The Women Leaders
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