A Wall Street Genius's Final Investment Playbook-Chapter 111

"Access to the informant is absolutely impossible. We also cannot provide any information that might hint at their identity."

Jonathan's voice carried a firm resolve.

So, I thought he was rejecting my proposal outright.

But he came back with an unexpected counteroffer.

"However, if it doesn't involve pointing to a specific individual, we can provide information. Why not listen to it and decide if it's worth the trade?"

Jonathan wanted me to hear the information first and then decide whether it was valuable enough to exchange for coverage on the board members.

‘It’s not like he trusts me or anything…'

Jonathan's gaze resembled that of a scientist observing a test subject.

As if determined to figure out my true intentions, he focused on every nuance of my expression.

His motive was clear.

"You're testing me, aren't you?"

His strategy was evident.

He’d provide the information, then observe my reaction to determine if I was a spy for Theranos.

Jonathan didn’t bother denying it.

"It's not that I particularly suspect you. It's just safer for me to assume the worst-case scenario."

"Understood. Let's hear it then."

At my response, Jonathan's expression grew more serious.

"First of all, even if you sue Theranos, winning is impossible."

I showed no reaction to his assertive statement.

He continued.

"Theranos's diagnostic device, Newton, is like a goose that lays golden eggs."

It was an apt metaphor.

It’s a product that generates money, yet its secret must never be revealed.

"But you intend to claim that ‘this goose can't lay golden eggs.' To prove that, you'd have to scrutinize proprietary technologies protected as trade secrets… Theranos will argue that it's like cutting open the goose's belly. They’ll claim that revealing core technologies would lead to a flood of imitators. In goose terms, if everyone starts laying golden eggs, the goose loses its value."

In fact, Theranos's argument wasn’t entirely wrong.

True innovation often leads to countless imitations once its core idea is exposed.

Like the flood of smartphones after the iPhone, or the boom in electric vehicles following Tesla's success.

‘The problem is, it's all a lie.'

Theranos doesn’t actually have the ability to lay golden eggs—no core technology at all.

Which is exactly why they’re so desperate to hide the truth.

"The key is to cut open the goose's belly. That’s the only way to reveal the truth. There are three main methods."

Jonathan pulled out a notebook and started jotting down notes with a pen.

<Method 1: Voluntary Disclosure by Shareholders>

"First is voluntary disclosure by shareholders. But they’d never step forward to reveal the truth, so we'd need a forced measure—namely, the court."

He glanced at my face again, but I remained expressionless.

"If the court deems it necessary, it can order the goose's belly to be cut open. Your intention to sue likely stems from this."

It was a reasonable assumption, but incorrect.

Still, I nodded for now.

"For the court to issue such an order, there needs to be solid grounds. In other words, claims like ‘misdiagnoses caused by this device’s errors could endanger lives,' supported by evidence. That’s why I’ve collected cases of such misdiagnoses."

Jonathan claimed to have investigated various medical centers that requested tests from Theranos, uncovering doctors who harbored doubts about the technology.

Surprisingly, even among just 40 centers, there were as many as five doctors with suspicions.

"It’s hard not to be skeptical. PSA levels, considered an early sign of prostate cancer, spiking abnormally; thyroid hormone levels, platelets, fibrinogen markers reaching dangerous levels—all while the patient was actually healthy. So they retested at other hospitals, and this time, everything was normal. Many doctors found this suspicious. I believed their testimonies alone would be enough to persuade the court."

Jonathan wrote again in his notebook.

<Method 2: Testimonies from Medical Professionals>

But as soon as he wrote it, his expression darkened.

"I thought I’d secured key testimonies… but the doctors suddenly refused to be interviewed. They were initially passionate about revealing the truth for public safety but abruptly changed their stance, saying, ‘Don’t quote or use my words.'"

"Isn’t this information from your ‘informant'?"

I asked.

Because he was voluntarily revealing matters related to the so-called informant he’d insisted on keeping confidential.

Jonathan gave a bitter smile and replied.

"They’re no longer my informants. Of course, that doesn’t mean I’ll disclose their identities… If you want, you’ll have to find them yourself among roughly 300 medical professionals."

In other words, this alone isn’t enough to identify them.

Besides, sharing this information with me wouldn’t pose much risk anyway.

"They suddenly refused interviews… Was it because of Theranos?"

"Yes, that’s correct."

After all , Theranos must already be aware of those doctors’ existence.

Even if I were a spy, telling me this wouldn’t make much difference.

"After my visits, Theranos's vice president Sharma showed up with a lawyer, threatening to sue for defamation if they gave negative testimony about Theranos’s products."

At this point, I felt a twinge of doubt.

No matter how shameless they are…

"Wouldn’t a defamation lawsuit be difficult with concrete evidence? The doctors are basing their claims on actual test errors."

Jonathan gave a faint smile.

"They said, ‘Just because the results were briefly incorrect doesn’t mean the technology itself is flawed.' After all, any test can have a 1-5% error margin."

In other words, all the errors the doctors found were dismissed as part of a standard 1% margin of error.

It was the height of shamelessness.

"But the issue isn’t minor errors—it’s that misdiagnoses happened so frequently the doctors grew suspicious."

"Even that argument doesn’t help. The response I received was, ‘It was a temporary error caused by a component defect in the device at the time.'"

To put it in metaphorical terms, they claimed the goose couldn’t lay eggs temporarily because it was sick.

The mere fact that testing errors occurred wasn’t enough to definitively prove the goose couldn’t lay golden eggs.

It was absurd, yet legally, it held water.

"Not only did Theranos make such excuses, but they also warned that ‘exaggerating these routine defects as technical issues is clear defamation.' They even followed up with daily calls to remind the doctors. Who’d want to cooperate under such pressure?"

For the doctors, the stress alone was overwhelming, not to mention the risk of legal battles, hiring lawyers, and appearing in court.

If Theranos won, they’d even have to pay damages.

With things like this, what doctor would willingly step forward?

"The same thing happened with every doctor I met. So, I concluded that obtaining testimonies from medical professionals would be impossible. That leaves only one way to confirm the absence of the technology."

Jonathan scribbled in his notebook again.

<Method 3: Testimonies from Employees>

"They are, so to speak, the ones who have directly witnessed the goose laying golden eggs. They know the truth about the technology better than anyone. However… the employees won’t give proper answers either. They've all signed NDAs."

NDA (Non-Disclosure Agreement).

This refers to a confidentiality agreement.

Violating it could lead to not just dismissal but also hefty compensation claims.

"All of Theranos's employees are bound by this NDA. In fact, NDAs themselves aren't particularly special. They're common practice in Silicon Valley."

Most Silicon Valley startups dealing with innovative technology require NDA signatures.

However, Theranos had a unique characteristic.

"Theranos actually sues its employees. While other companies only take legal action for NDA breaches after actual damages occur, Theranos responds legally the moment they suspect information has been leaked, regardless of whether there’s been any harm. That’s why the employees keep their mouths shut."

His face darkened as he lowered his gaze and continued.

"Some even claimed they were monitored just for having contact with me, even without cooperating. They felt like someone was following them. So, they didn’t tell their families and hid at a friend’s house, but Theranos's law firm sent a legal notice there. It said, ‘We are aware you have disclosed confidential information and made defamatory remarks to an outsider. If you do not meet with our legal team immediately, we will sue you.' After that, they asked me never to contact them again."

“……”

"I believe they’ve assigned someone to follow me as well. Every employee and doctor I’ve contacted has received similar threats within days. Also, it’s highly likely that my office is under surveillance. That’s why I suggested meeting outside. I can shake off a tail, but I still don’t know the identity of the ‘eyes.'"

It sounded like something out of a movie…

But considering Holmes’ and Sharma’s paranoia and delusions of grandeur, it was entirely plausible.

This case was so absurd that it had even been adapted into films and dramas.

Jonathan stared at his notebook with a lonely smile.

I followed his gaze and saw the clearly underlined phrases.

<Method 1: Voluntary Disclosure by Shareholders>

<Method 2: Testimonies from Medical Professionals>

<Method 3: Testimonies from Employees>

"The only thing I can provide are testimonies that can’t identify the sources. Even if you manage to find these witnesses, they won’t testify in court. They’re afraid of defamation lawsuits and NDA violations."

Finishing his words, Jonathan looked up at me.

"Now, this is the information I have. Do you still think it’s worth the trade?"

It seemed like this was the moment of the test.

He wanted to judge whether I was trustworthy based on my response.

So far, he’d only provided information that Theranos was already aware of, subtly indicating that there was nothing more.

If I were a Theranos spy…

I’d probably ask about the timing of his exposé around this point.

But I’m not a spy.

Therefore, I’m not curious about his exposé schedule.

‘Because I already know it.'

He wouldn’t reveal all this until next year. I’m here to persuade him to move that timeline forward significantly.

Looking straight at him, I opened my mouth.

"I plan to file a lawsuit against Theranos within two months."

"What?"

That seemed unexpected.

Jonathan’s eyes widened in surprise, then he gave a bitter smile and shook his head.

"Impossible. I told you, didn’t I? There’s no way to overcome these three hurdles and win the lawsuit."

"No, Jonathan, you’ve overlooked a gap."

"A gap?"

I smirked slightly and pointed to his notebook.

"Methods 2 and 3 are impossible. Theranos has fortified those areas thoroughly."

Theranos’s legal team kept close tabs on employees and medical professionals.

They didn’t hesitate to employ surveillance and legal intimidation.

"But this area is completely undefended."

What I pointed at was Method 1.

‘Voluntary Disclosure by Shareholders.'

Jonathan looked puzzled.

"Isn’t that because there’s no need to defend it? Why would the owners harm the goose that lays golden eggs themselves?"

"Because… that’s exactly where the danger lies."

I quietly smiled and continued.

"The most dangerous thing in investments is assuming something is ‘obvious.' That’s where traps usually lurk. I plan to set one of those traps."

"But there’s absolutely no reason for the shareholders to act that way… is there?"

"Then we’ll create a reason."

"Huh?"

"Theranos’s board members aren’t people desperate for gold. They’re the kind who’d abandon the goose that lays golden eggs if needed. So, what would make them give up that gold?"

The answer was clear.

"Honor… perhaps?"

"Exactly."

The board members belonged to society’s elite.

Most were former politicians or high-ranking officials.

"If they had to choose between money and honor, with no option to have both, which would they pick?"

I stared directly at Jonathan and declared with determination.

"I intend to force them to make that choice."