The U.S. recovery slowed in the third quarter as the Delta variant surged.

The gross domestic product grew 0.5 percent (a 2 percent annualized rate) as supply-chain bottlenecks and the resurgent pandemic hampered the economy.

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seasonality, at annual rates


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economy was

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reach before

the pandemic.

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seasonality, at annual rates

Economic growth slowed sharply over the summer as supply-chain bottlenecks and the resurgent pandemic restrained activity at stores, factories and restaurants.

Gross domestic product, adjusted for inflation, grew 0.5 percent in the third quarter, the Commerce Department said Thursday. That was down from 1.6 percent in the second quarter, dashing earlier hopes that the recovery would accelerate as the year went on.

Growth in consumer spending, which has helped drive the recovery, slowed to 0.4 percent, from 2.9 percent in the second quarter, and spending on goods fell sharply. Business investment also slowed.

On an annualized basis, G.D.P. rose 2 percent in the third quarter, down from 6.7 percent in the second quarter.

The slowdown was partly a result of the spread of the Delta variant of the coronavirus, which led many Americans to pull back on travel, restaurant meals and other in-person activities. More recent data suggests that people have returned to those activities as virus cases have fallen, and most economists expect significantly faster growth in the final three months of the year.

But another major restriction on growth may be slower to recede. The pandemic has snarled supply chains around the world, even as demand for many products has surged. The resulting backups have made it hard for U.S. stores and factories to get the products and parts they need. Economists initially expected the disruptions to be short, but many now expect the issues to linger into next year.

Many businesses are also struggling to find enough workers to make, sell and deliver products — another supply shortage that is holding back growth longer than economists expected.

“The economy doesn’t have a demand problem,” said Ben Herzon, executive director of IHS Markit, a forecasting firm. “It has a supply problem.”

In some cases, those supply issues are resulting in delayed deliveries, reduced selection and empty shelves. In other cases, they are resulting in higher prices: Inflation soared last spring and has remained elevated. Consumer prices rose 1.3 percent in the third quarter, slightly slower than in the prior quarter, but still well above the prepandemic rate. Prices were up 4.3 percent from a year earlier.

In government statistics, faster price increases result in slower inflation-adjusted growth: Consumers are spending just as much, but getting less in return.

The combination of faster inflation and slower growth is causing headaches for the Federal Reserve, which has indicated it expects to being pulling back support for the economy as early as next month. It is also a political problem for President Biden as he tries to push his longer-term economic agenda through Congress.

Still, the economy is in much better shape than forecasters expected for most of last year. Gross domestic product returned to its prepandemic level in the second quarter, although it has not caught up to where it would be if the pandemic had never occurred. Government aid, along with reduced spending during the pandemic, has left Americans flush with cash, which should support spending for the rest of the year.

“Supply chain disruptions together with Delta conspired to hold back growth,” said Constance L. Hunter, chief economist for KPMG, the accounting firm. “It’s a speed bump not a slowdown.”

To understand how supply-chain woes are holding back the economic recovery, look no further than auto sales.

Spending on motor vehicles and parts, adjusted for inflation, fell 17.6 percent in the third quarter, according to the government data released Thursday. The problem wasn’t that Americans didn’t want cars — it was that dealers didn’t have enough to sell them. A global shortage of computer chips led to a slump in auto production, which in turn led to a slump in sales.

When consumers can find cars to buy, they are paying more for them. Total spending on motor vehicles, not adjusted for inflation, fell 13.5 percent — still a big drop, but not quite as big as the inflation-adjusted figure. In other words, consumers were getting less for their money.

The drop in car production was big enough to drag down overall economic growth for the quarter. Gross domestic product would have risen 0.9 percent in the third quarter had it not been for the slump in auto output.

Supply-chain issues have been particularly acute in the auto sector, but they are much broader than that. Spending on other long-lasting goods also fell.

“It’s not just in autos,” said Robert Rosener, senior U.S. economist at Morgan Stanley. “There are other consumer goods that are also in short supply.”

The snarled supply chain is partly a result of the surge in spending on goods during the pandemic, as Americans bought cars instead of plane tickets, workout equipment instead of gym memberships and cooking equipment instead of restaurant meals. Those patterns have begun to reverse as the pandemic has ebbed, but not all the way. Spending on goods remains far above its prepandemic level, while services spending, adjusted for inflation, had yet to return to its prior level in the third quarter.

The spread of the Delta variant has slowed the service-sector rebound. Spending at hotels and restaurants rose just 3 percent in the third quarter, down from nearly 14 percent in the second quarter, adjusted for inflation.

The South Belridge Oil Field near McKittrick, Calif., a joint venture between Royal Dutch Shell and Exxon Mobil, whose leaders will be among the executives appearing before Congress.Credit…David McNew/Getty Images

House Democrats are set to grill the executives of some of the world’s biggest oil and gas companies — Exxon Mobil, Chevron, BP and Shell — over allegations that the industry spread disinformation about the role fossil fuels play in global warming to derail action on climate change.

The hearings are the first time oil executives will be pressed to answer questions, under oath, about whether their companies misled the public about the reality of climate change by obscuring the scientific consensus: that the burning of fossil fuels is raising Earth’s temperature and sea levels with devastating consequences worldwide, including intensifying storms, worsening drought and deadlier wildfires.

“Today, the CEOs of the largest oil companies in the world face a stark choice,” Ro Khanna, the Democratic representative from California, who has been central to the effort to bring executives before a congressional committee, said in prepared remarks seen by The New York Times.

“You can either come clean, admit your past misrepresentations and ongoing inconsistencies, and stop supporting climate disinformation,” he said. “Or you can sit here in front of the American public and lie under oath.”

Industry executives are expected to defend their evolving statements regarding climate science, and stress that they support global action on climate, including the Paris accord — the agreement among nations to fight climate change and cut emissions of carbon dioxide — and that the oil and gas industry will play a critical role in solving the climate crisis.

“Inaction is not an option,” Suzanne Clark, president of the U.S. Chamber of Commerce is expected to say, according to prepared remarks.

House Democrats compare the inquiry with the historic tobacco hearings of the 1990s, which brought into sharp relief how tobacco companies had lied about the health dangers of smoking, paving the way for tough nicotine regulations. Climate scientists are now as certain that the burning of fossil fuels causes global warming as public health experts are sure that smoking tobacco causes cancer.

The evidence showing that fossil fuel companies distorted and downplayed the realities of climate change has been documented by academic researchers.

The European Central Bank building in Frankfurt, Germany. The bank said Thursday it would continue its pandemic-era bond-buying program at a slightly slower pace than earlier this year.Credit…Ralph Orlowski/Reuters

As major economies grapple with higher-than-expected inflation and lingering supply chain disruptions, the European Central Bank held firm on its policy stance on Thursday. It continued its pandemic-era bond-buying program at a slightly slower pace than earlier this year and kept interest rates steady.

Last month, policymakers slowed down the pace of purchases in the bank’s pandemic-era bond-buying program, from about 80 billion euros a month. The bond purchases are one of the ways the bank keeps interest rates low, and at the time the central bank’s president, Christine Lagarde, attributed the change to an improved outlook for the economy and higher inflation expectations.

The annual inflation rate for the eurozone climbed to 3.4 percent in September, the highest in 13 years. The economy is recovering from the pandemic, but the demand for goods has disrupted supply chains. The central bank estimated that exports from the eurozone would have been almost 7 percent higher in the first half of the year without these bottlenecks — a more severe impact than for the rest of the world, which would have seen exports rise an additional 2.3 percent, Ms. Lagarde said in a speech earlier this month.

The central bank’s 1.85 trillion euro ($2.15 trillion) pandemic bond-buying program is scheduled to run until at least March, and investors are eager to know whether it will be extended or if the central bank’s older bond-buying program will be expanded to help meet the target of 2 percent inflation in the medium term. Ms. Lagarde said last month that the future of these bond programs wouldn’t be discussed until the central bank’s December meeting, when policymakers will get a new set of forecasts for economic growth and inflation.

The European Central Bank is expected to have a looser monetary stance, with lower interest rates, in place for longer than the policies of the Federal Reserve and Bank of England because its longer-term forecasts for inflation are still below the central bank’s target. In Britain, inflation is expected to rise above 4 percent, above the Bank of England’s target of about 2 percent. The bank’s governor, Andrew Bailey, has said the rate of inflation was concerning and that officials needed to prevent high inflation from becoming permanent.

Royal Dutch Shell is “one of the cheapest large-cap stocks in the world,” said Daniel S. Loeb of Third Point.Credit…Thilo Schmuelgen/Reuters

As Royal Dutch Shell announced its quarterly earnings on Thursday, including a jump in profit that failed to meet investor expectations, company executives were dealing with an activist fund’s proposal that the oil giant be broken up.

Third Point, an activist fund management firm in New York, has taken a stake in Shell worth about $750 million, according to a person familiar with the matter, and called for it to be broken up into “multiple stand-alone companies” that could address competing shareholder interests.

These companies could include a unit encompassing Shell’s legacy oil- and gas-extraction businesses and another with its renewable-energy and liquefied-natural-gas activities, Third Point’s chief executive, Daniel S. Loeb, said in a letter to investors.

Mr. Loeb called Shell “one of the cheapest large-cap stocks in the world.” He also said that by most metrics, Shell was trading at a 35 percent discount to its rivals Exxon Mobil and Chevron, despite what he called “higher quality and more sustainable” business lines.

He blamed the company’s “attempting to appease multiple interests but satisfying none” for the lack of investor interest in Shell.

Third Point’s move recalled the successful battle waged this spring by another activist hedge fund, Engine No. 1, to install three directors on the board of Exxon Mobil with the goal of pushing it to reduce its carbon footprint.

Shell’s chief financial officer, Jessica Uhl, said on a call with reporters Thursday that the company did not have much information about Third Point’s intentions beyond the investor letter.

“We have had some very preliminary discussions with Third Point over the last year, not particularly specific,” she said. She added that Shell would “respond appropriately” after finding out more.

Ms. Uhl conceded that “we haven’t done a good enough job” in explaining Shell’s strategy for shifting to cleaner energy, which involves using the cash from oil and gas to fund new cleaner businesses.

Shell executives argue that as a large, well-capitalized organization with more than a century of experience delivering various forms of energy, Shell is well-placed to make multibillion-dollar investments in areas like carbon capture and storage and hydrogen that will be needed in the shift to cleaner energy.

“A very significant part of this energy transition is going to be funded by the legacy businesses that we still have,” said Ben van Beurden, Shell’s chief executive on the call. “If you want to exclude us from it, I don’t think it will go as fast as it would otherwise go,” he added.

Shell has also been under pressure to shed fossil fuel investments after a Dutch court ordered the company in May to cut greenhouse-gas emissions 45 percent by 2030 compared with 2019 levels. Shell is appealing the ruling.

Shell may resist the idea of a breakup, but pressure from Third Point or others is likely to have some impact, analysts say. Most of the big European oil companies are investing in clean energy like wind and solar, and related businesses like electric vehicle charging, but are not being given credit by the markets for doing so, they say.

Some energy companies are likely to make changes to appeal to investors. Eni, the Italian oil and gas company, is studying whether to make a stock market listing for its renewable energy businesses.

News of the Third Point’s interest came as Shell, Europe’s largest oil company, reported $4.1 billion in adjusted earnings for the third quarter of this year, a substantial increase over the $955 million reported in the period a year earlier, thanks mainly to higher oil and gas prices. The earnings came in below analysts’ expectations.

Shell shares were 1.7 percent lower in midday trading in Europe.

Emily Flitter and Michael J. de la Merced contributed reporting.

Alec Gores in 2019. “The market has shifted — and we totally get that,” he said of a merger with the boutique apartment-hotel company Sonder that was restructured.Credit…Leon Bennett/Getty Images

A special purpose acquisition company led by the buyout specialist Alec Gores, which announced a merger with the boutique apartment-hotel company Sonder in April, is restructuring the terms of its deal. The revised transaction will value Sonder at just over $1.9 billion, rather than $2.2 billion as originally planned, the DealBook newsletter reports.

The restructuring comes as SPACs strain under pressure. (At least, the SPACs not affiliated with former President Donald J. Trump.) Wariness of the blank-check vehicles is dragging many down below $10 per share, the price at which these companies tend to go public. This entices investors to exercise their right to redeem their shares at that price when a merger is consummated, a unique feature of the SPAC structure.

Every redeemed share means less cash available to the newly merged company. The Gores SPAC merging with Sonder has been trading just a few cents below $10 per share in recent months. The proposed business combination remains on track to close in the second half of 2021.

As part of the revised deal, affiliates of the Gores Group will contribute an additional $110 million in financing, alongside Fidelity, BlackRock and others. That’s on top of the deal’s original $200 million “PIPE” (private investment in public equity), which is a pot of money raised alongside a SPAC’s initial public offering. There’s also a new $220 million debt facility.

“The market has shifted — and we totally get that,” Mr. Gores told DealBook. “As long as you have a great company, the market is going to go in 100 different ways, and we just have to be smart enough to recognize where the market is.”

The Gores Group, a serial SPAC sponsor, has access to capital and a network that other SPACs might not, giving it the ability to shift with market conditions. Still, there are drawbacks to these adjustments: A larger PIPE means more dilution for shareholders.

“Our focus is to make sure the plan is fully funded,” said Sanjay Banker, Sonder’s president and chief financial officer. “The arithmetic in the short run is much less important.”

The hospitality firm, which reported record revenue and widening losses this month, recently opened a property in Paris as well as expanded in the Middle East and Mexico.

Food prices are surging, and food banks and pantries are struggling to keep up. To cope, they’re substituting or pulling the most expensive products, like beef, from their offerings, The New York Times’s Nelson D. Schwartz and Coral Murphy Marcos report.

The Latest on Food Prices

Nelson D. SchwartzReporting on economics

The Latest on Food Prices

Nelson D. SchwartzReporting on economics

Kaiti Sullivan for The New York Times

The cost of food is soaring — and it’s changing shopping and eating habits for tens of millions of Americans. Some are skipping the most expensive items, while others are working longer hours to put food on the table.

Here’s what to know ->

The Latest on Food Prices

Nelson D. SchwartzReporting on economics

Prices of meat, poultry, fish and eggs in U.S. cities are up 15 percent since the start of 2020, according to the Bureau of Labor Statistics.

Steak, ground beef for hamburger, and turkey are especially costly.

The increases are due to supply chain shortages and higher labor costs and there is little relief in sight. In fact, some economists think prices could rise even more, given the increase in energy prices.

The Latest on Food Prices

Nelson D. SchwartzReporting on economics

Hiroko Masuike/The New York Times

I spoke to Americans from all over the country about the high costs.

Robin Mueller, who lives in Indianapolis, would buy ground beef for meatloaf or hamburgers to serve once or twice a week for her family. Now she can afford to cook it only once or twice a month.

The Latest on Food Prices

Nelson D. SchwartzReporting on economics

Food banks, too, are feeling stretched.

A case of peanut butter that was $13 to $14 before the pandemic now costs $16 to $19, according to Alexandra McMahon, director of food strategy for the Gleaners Food Bank of Indianapolis.

Green beans that used to retail for $9 a case now sell for $14.

As a result, some food banks are limiting offerings or seeking more in donations to cover their costs.

The Latest on Food Prices

Nelson D. SchwartzReporting on economics

Kaiti Sullivan for The New York Times

The trend is a sharp reversal from much of the last decade, when food prices were relatively stable and meals didn’t take up as big of a part of household budgets.

Unfortunately, it looks like bigger grocery bills aren’t going away soon.

Read more about food prices:

6m ago

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Roblox requires players to upload a government ID, and a selfie to prove it’s theirs, if they want access to the game’s voice chat.Credit…Andrew Mangum for The New York Times

Responding to mounting pressure from activists, parents and regulators who believe tech companies haven’t done enough to protect children online, businesses and governments around the globe are placing major parts of the internet behind stricter digital age checks.

People in Japan must provide a document proving their age to use the dating app Tinder. The popular game Roblox requires players to upload a form of government identification — and a selfie to prove the ID belongs to them — if they want access to a voice chat feature. Laws in Germany and France require pornography websites to check visitors’ ages.

This month, lawmakers in Washington, which has lagged other world capitals in regulating tech companies, called for new rules to protect young people after a former Facebook employee said the company knew its products harmed some teenagers. They repeated those calls on Tuesday in a hearing with executives from YouTube, TikTok and the parent company of Snapchat.

The New York Times’s David McCabe reports that the changes, which have picked up speed over the last two years, could upend one of the internet’s central traits: the ability to remain anonymous. Since the days of dial-up modems and AOL chat rooms, people could traverse huge swaths of the web without divulging any personal details. Many people created an online persona entirely separate from their offline one.

But the experience of consuming content and communicating online is increasingly less like an anonymous public square and more like going to the bank, with measures to prove that you are who you say you are.

Critics of the age checks say that in the name of keeping people safe, they could endanger user privacy, dampen free expression and hurt communities that benefit from anonymity online. Authoritarian governments have used protecting children as an argument for limiting online speech: China barred websites this summer from ranking celebrities by popularity as part of a larger crackdown on what it says are the pernicious effects of celebrity culture on young people.

Stocks on Wall Street rose on Thursday, with the S&P 500 climbing further into record territory. The benchmark rose 0.6 percent, while the Nasdaq composite was up about 0.7 percent.

Ford led the gains in the S&P 500, climbing about 12 percent after automaker raised its profit forecast and said it would begin paying a dividend again, noting its supply of semiconductors had improved. Ford’s profits during the latest quarter were hit by the global shortage of computer chips.

Investors were also considering the latest economic data out of the United States. Gross domestic product grew 0.5 percent in the third quarter, the Commerce Department said Thursday, marking a slowdown in economic growth during the summer. The growth was hampered partly by supply chain bottlenecks, as well as the spread of the Delta variant of the coronavirus, which led many Americans to pull back on travel, restaurant meals and other in-person activities.

Initial claims for state jobless benefits fell last week, the Labor Department reported Thursday. The weekly figure was about 281,000, down 10,000 from the previous week.

The yield on 10-year U.S. Treasury notes rose to 1.56 percent on Thursday from 1.54 percent.

Shares of Royal Dutch Shell fell more than 5 percent after the company’s quarterly earnings failed to meet investor expectations on Thursday. The report came as an activist investor, Third Point, has taken a stake in Shell worth about $750 million and called for the oil giant to be broken up.

Amazon and Apple are set to publish their financial performance reports after the market close on Thursday. Microsoft and Alphabet were among the best performers in the S&P 500 on Wednesday after both companies published their quarterly earnings reports on Tuesday.

Elizabeth Holmes faces up to 20 years in prison if she is convicted.Credit…Mike Kai Chen for The New York Times

SAN JOSE, Calif. — The ninth week of testimony in the fraud trial against Elizabeth Holmes raised questions of what risks and responsibilities investors have when they put money into high-growth start-ups like Theranos, Ms. Holmes’s failed blood testing company.

In past weeks of the trial, the jury heard from former Theranos employees who were alarmed by its practices, as well as executives and board members who said they were taken in by Ms. Holmes’s pitch for blood testing machines that could conduct hundreds of blood tests accurately and quickly from a drop of blood.

That built up to testimony from investors, who prosecutors said are the victims in the 12 counts of wire fraud at the heart of the trial. Before Theranos collapsed in 2018, it raised $945 million from investors, valuing it as high as $9 billion and making Ms. Holmes a billionaire.

Ms. Holmes has pleaded not guilty. If convicted, she faces 20 years in prison.

Here are the key takeaways from this week’s proceedings, which took place only on Tuesday after a water main break near the courthouse on Wednesday forced the cancellation of the day’s events.

Lisa Peterson, an investment manager at RDV Corporation, an investment firm representing Michigan’s wealthy DeVos family, explained how the group came to invest — and eventually lose — $100 million in Theranos.

RDV’s chief executive, Jerry Tubergen, met Ms. Holmes at a 2014 conference and became enthusiastic about Theranos, according to an email shown in court. Ms. Peterson, who was put in charge of researching and facilitating the investment, testified that Theranos had handpicked a few wealthy families to invest and that Ms. Holmes made the firm feel lucky to be included.

“She was inviting us to participate in this opportunity,” Ms. Peterson said. Theranos purposely sought out private investors who would not push the company to go public, a presentation shown in court said.

With Ms. Peterson’s testimony, prosecutors built on how Theranos had appeared to use fake endorsements from pharmaceutical companies to deceive its partners and investors. Theranos had shown Walgreens and Safeway executives a validation report that displayed the logos of pharmaceutical companies and said they supported its technology.

Last week, a Pfizer executive testified that the company had dug into Theranos’s technology and “come to the opposite conclusion.” Ms. Peterson said she had seen the validation report and believed it had been prepared by Pfizer, which helped entice her firm to invest.

In a heated cross-examination, Ms. Holmes’s lawyers tried painting Ms. Peterson as a negligent steward of capital who did not do proper research before pouring cash into a young start-up.

Lance Wade, a lawyer for Ms. Holmes, highlighted contradictions between Ms. Peterson’s statements and an earlier legal deposition she had given. When Ms. Peterson insisted that her current testimony was accurate, he shot back, “Your memory has improved over time? Is that your testimony?”

Mr. Wade also prodded Ms. Peterson for not hiring scientific, legal and technology experts to dig into Theranos’s claims, nor did she demand to see copies of Theranos’s contracts with Walgreens and Safeway. “You understand that’s a typical thing to do in investing?” he asked.

Ms. Peterson said the firm relied on what Ms. Holmes and other Theranos executives told them.

Mr. Wade tried to diminish Ms. Peterson’s decision-making power within the firm by pointing out that she was not on RDV’s investment committee and was not present for all the meetings involving Theranos.

By arguing that investors like Ms. Peterson didn’t do enough research, Ms. Holmes’s lawyers walked a delicate line. That’s because their argument included an implied acknowledgment that Theranos’s technology did not do all that it promised, even as they also had to maintain that Ms. Holmes did not lie about the technology.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Carlos Chavarria for The New York Times

Elizabeth Holmes, the disgraced founder of the blood testing start-up Theranos, stands trial for two counts of conspiracy to commit wire fraud and 10 counts of wire fraud.

Here are some of the key figures in the case ->

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Stephen Lam/Reuters

Holmes founded Theranos in 2003 as a 19-year-old Stanford dropout. She raised $700 million from investors and was crowned the world’s youngest billionaire, but has been accused of lying about how well Theranos’s technology worked. She has pleaded not guilty.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Justin Sullivan/Getty Images

Ramesh Balwani, known as Sunny, was Theranos’s president and chief operating officer from 2009 through 2016 and was in a romantic relationship with Holmes. He has also been accused of fraud and may stand trial next year. He has pleaded not guilty.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Jefferson Siegel for The New York Times

David Boies, a prominent litigator, represented Theranos as its lawyer and served on its board.

He tried to shut down whistle-blowers and reporters who questioned the company’s business practices.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Getty Images

The journalist John Carreyrou wrote stories exposing fraudulent practices at Theranos.

His coverage for The Wall Street Journal helped lead to the implosion of Theranos.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Jeff Kravitz/FilmMagic, via Getty Images

Tyler Shultz and Erika Cheung are former Theranos employees and were whistle-blowers. They worked at the start-up in 2013 and 2014.

Shultz is a grandson of George Shultz, a former secretary of state who was on the Theranos board.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Eric Thayer for The New York Times

James Mattis, a retired four-star general, was a member of Theranos’s board.

He went on to serve as President Donald J. Trump’s secretary of defense.

Who’s Who in the Elizabeth Holmes Trial

Erin Woo?Reporting from San Jose, Calif.

Edward Davila, a federal judge for the Northern District of California, will oversee the case.

Kevin Downey, a partner at the Washington law firm Williams & Connolly, is the lead lawyer for Holmes.

Robert Leach, an assistant United States attorney for the Northern District of California, will lead the prosecution for the government, along with other prosecutors from the U.S. attorney’s office.

Read more about Elizabeth Holmes:

Aug. 30, 2021

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Jurors watched two videos of Ms. Holmes — most likely their first time seeing her face without a mask — as she defended Theranos in interviews after The Wall Street Journal reported in 2015 that the start-up’s blood testing machines did not do as much as claimed.

In an appearance on Jim Cramer’s “Mad Money” show on CNBC, Ms. Holmes said Theranos’s machines could do more than 100 tests, dismissing the critical report. In an interview with CBS in 2016, Ms. Holmes was more contrite, saying, “I’m the C.E.O. and founder of this company. Anything that happens in this company is my responsibility.”

Ms. Holmes’s lawyers argued to exclude the videos as evidence, at one point referring to the period of time after The Journal article as the “conspiracy period.”

Ms. Peterson testified that during that time, she and others at RDV met with Ms. Holmes. At the meeting, Ms. Holmes downplayed the revelations, Ms. Peterson said, saying The Journal’s reporting was “done by a very overzealous reporter who wanted to win a Pulitzer.”

Mr. Wade asked the court to strike that comment from the record.

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