When Theranos threatened the WSJ with a lawsuit

Nick Bilton of Vanity Fair looks at the culpability of the tech press in the dramatic rise of Theranos and how the company threatened The Wall Street Journal with legal action last year before it published its damning coverage.

Bilton writes, “Yet in April of 2015, when John Carreyrou, an investigative reporter with The Wall Street Journal, reached out for an interview with Holmes, he said he got a very different response.

“After two months of being stonewalled by the Theranos P.R. team, Carreyrou told me an entourage of lawyers arrived at the Journal’s Midtown Manhattan offices at one P.M. on June 23. The pack confidently sauntered past editors and reporters in the fifth-floor newsroom and was led by David Boies, the superstar lawyer who has taken on Bill Gates, the U.S. government, and represented Al Gore in the 2000 Florida recount case. Four other attorneys and a Theranos representative accompanied him. Before anything was said, the lawyers placed two audio recorders at either end of the long oval wood table, and recalcitrantly sat across from Carreyrou, his editor, and a Journal lawyer. Then they hit record.

“Almost immediately, one person present told me, Boies and his team threatened legal action against the paper, accusing it of being in possession of ‘proprietary information’ and ‘trade secrets.’ The Theranos legal team then did their best to discredit dozens of independent sources whom Carreyrou had interviewed. The legal team roared, they showed teeth, they tried to intimidate. After a very tense five hours, the person told me that Boies and his platoon exited the newsroom, leaving behind the very serious specter of a lawsuit. (A spokesperson for both Boies and Theranos declined to comment. But one person close to the company said that Boies had been dispatched because Theranos executives had learned that the Journal possessed sensitive internal documents.)

“For four months after that meeting, Carreyrou continued to try to secure an interview with Holmes, and for four months he was continuously threatened. Finally, in October, the Journal published its now-famous article suggesting that the Theranos narrative was all wrong — that the company’s technology was faulty, that it relied on other companies’ machinery to run many of its tests, and that some of those tests yielded inaccurate results. In fact, as Carreyrou reported, the company was hawking a tale that was too good to be true.”

Read more here.