04. Goodbye East Paly

Dated May 21, 2018; last modified on Sun, 14 Mar 2021

For some terminated employees, Holmes requested a dossier on them for leverage. Mosley (finance guy) had stored porn on his work laptop. Holmes (retroactively) used that as the cause for his termination and lack of stock options.

Matt (IT) wanted to leave to start IT consulting firm. Holmes asking him to use ununionized (mob controlled) movers for a last minute move from East Paly was one of the final straws. Holmes tried asking Matt’s peer to build dossier in exchange for Matt’s position, but they declined.

I’m guessing Ed Ruiz wasn’t fired after declining the request - otherwise Carreyrou would have mentioned it.

Aaron’s field trial: prick finger and put blood in catridge. Few people got it right on their first try. Holmes and Tony didn’t think these usability problems were a priority.

After bamboozling Novartis in Switzerland in late 2006, Holmes arranged a Jan 2008 visit. The devices failed with a software error, which Holmes dismissed as a technical glitch.

Tim Kemp, a yes-man, sent the fabricated results in 2006. Holmes viewed him most loyal and never reprimanded him. (Later in the Chapter)

After the first Novartis demo in late 2006 during which Tim Kemp had beamed a fabricated result from California to Switzerland , Elizabeth had continued to court the drugmaker and had arranged a second visit to its headquarters in January 2008.

Todd raised financial and technical concerns to Esquivel, formerly legal and now a director. Esquivel pointed him to Don Lucas. Lucas took the concerns seriously this time. The board was to remove Holmes as CEO. Holmes admitted management issues, lack of transparency and unresponsive but promised to change. When you strike at the king, you must kill him. Holmes fired Todd and Esquivel.

So much drama. Juicy!