The Dropout (2022) s01e08 Episode Script


Wall Street Journal is doing an article.
I don't think it's going to be positive.
Does Schultz know his grandson is talking to us? Did you speak to the reporter? - No.
- Here's the restraining order.
We're preparing to file a lawsuit against you.
I am a little bit worried they're going to come after my sources.
Oh my god.
It's bad right now.
They're suing me.
They're tracking everything I do.
You haven't heard from Tyler? No.
But that also means I haven't heard that he's recanted.
Elizabeth, they're running it.
I don't know what I'm supposed to fucking do.
You should have protected me.
I think it might be time to consider whether you have the right people around you.
So if you look at the third text message down at 7:26 p.
from Mr.
Balwani, he says, "Okay, WAG freaking out.
Lack of transparency.
" - You see that? - Yes.
And you understand "WAG" is Walgreens? Yes.
What did you understand him to be referring to here? I I don't know.
I don't remember text exchanges with Sunny from years ago.
Do you remember discussing with Mr.
Balwani the concerns Walgreens had following Mr.
Carreyrou's article? Um I'm just thinking back.
Hi, this is Elizabeth Holmes.
How are you? Th-that's why I'm calling.
You may have seen a recent piece about Theranos in The Wall Street Journal.
First and foremost, I, I just want to make sure that you know that everything that they have written about us is false.
You're such a valued member of our board, and, uh, I wanted you to hear it from me.
Well, it's sexism.
Yeah, this reporter clearly has an issue with women.
Women in power.
That's right.
John Carreyrou.
Yeah, apparently he was born in France.
Wade, it's Sunny again.
Look, I, I know you're unhappy, but the fact is the story is bullshit.
And because of his sexist reporting, I'm, I'm now the target for all sorts of harassment.
Jay, if you will call me back, I will happily explain in more detail.
Yeah, you, you wouldn't believe the kinds of messages that I've been receiving on social media.
Cocksucker! Death threats, sexual, perverse.
I've had to put bulletproof glass on my office windows.
Yeah, like the White House.
Yes, a woman does belong there.
Well, you know me.
I'm a fighter.
And I-I've actually been promoting a hashtag on Twitter.
Iron Sisters.
Amelia Earhart.
Margaret Thatcher.
Other great women in history who faced tremendous resistance in their time.
- Marie Curie, Rosa Parks - Dr.
Hi, it's Sunny Balwani trying you again We knew there were problems with the nanotainer.
That's, that's why we pulled it.
We are ahead of it.
Our labs are still running.
We're containing the problem.
The biggest challenges create the biggest opportunities.
Yeah, it's kind of like an ocean.
Big waves, they come and they go.
But there's a reason that you're still there.
Obviously, you're the kind of guy who gets it Obviously, you're the kind of guy who gets it Obviously, you're the kind of guy who gets it Henry, I consider you an ally of, of me.
Of women as a whole.
I'm, I'm, I'm so glad to hear it.
I can't tell you how much it means to me to have your support It means the world to me Thank you so much.
Take care.
Mattis is still with us.
- That's the whole board, isn't it? - It is.
What about Carreyrou? We're workin' on it.
Everything? Just everything on my computer gets copied and preserved forever by The Journal? They're strongly advising us to be prepared for a defamation lawsuit.
This is what prepared looks like.
You know what they're doing, right? They protect themselves with NDAs, right, and then they go out and terrorize people.
They've been following me for months.
- John - Boies is getting away with it.
He is.
She is getting away with it.
She hasn't lost a single member of her board.
She called me a misogynist in public.
I mean, she is stalling until people forget.
She's stalling because she knows that people are going to forget.
Are you going to give me another speech on the relentless speed of the modern American news cycle.
Donald Trump called McCain a loser, and no one cares.
This is the battleground, John.
And the best way to keep the pressure on Theranos is to keep making news, and the best way to keep making news, and I hope this doesn't come as a shock, is to tell the people something new.
Go to Tyler and make him go on the record.
And then the story becomes about George Schultz.
And then we have more news, right? Right.
That was the kind of pep talk I've been waiting years for you to give.
Okay! Who's got an extra computer? Yeah.
Thanks for calling me back.
It's not a good time to talk.
I know.
I want to discuss what my options are, get your perspective on what my exposure is.
You know, I'll call you back another time.
Baby, are you there? Yeah, I'm just heading home.
I have some things to finish.
I'll meet you there.
Look, she's fooled lots of people.
I don't get why CMS would be any different.
The articles aren't enough.
Alright? She's still running her labs.
She's still sending bad results to people.
- I know - Fuck this.
No, fuck everything, I'm going to send that motherfucking letter! To some obscure government agency that no one's ever heard of? C-M-fucking-S.
You're swearing a lot.
I like it.
I'm just pointing it out.
What is CMS going to do that The Wall Street Journal can't do? Does CMS excite you? Okay, does it get you all, uh, hot and thirsty? I don't know how to answer that.
No, it doesn't.
Because it's boring.
My god, even the name's boring.
Center for Medicare and Medicaid Services.
It-it's just, like, so boring that I can't even say it without being bored.
And Elizabeth, no, she can't spin boring.
Underfunded and understaffed, but if they get a formal complaint, they have to investigate it.
It's just this fucking boring fucking federal fucking regulatory agency that can shut her ass down.
You signed your name? Yeah, I know.
Are-are you sure? No.
But I'm doing it.
Like, I, I want there to be a record.
And I want people to remember what she did, and I want it down on paper and I want to sign my name.
Do you think it's dumb? No.
I think it's fucking amazing.
Charlotte tells me you have something you'd like to say.
Yeah, I, uh I, I wrote it down.
And I'm I'm just going to read it.
Before I explain everything, I think it's important that I tell you the truth.
That you are the reporter's source.
- George.
- You've been his source all along.
Just say it.
I was the one who talked to the reporter from The Wall Street I trusted you.
I asked you not to lie.
And you lied to me.
And I am now planning to go on the record for a future article.
Excuse me? I'm going to let John use my name.
Your name? You mean my name? - It's my name, too.
- You go on the record and this story becomes about me.
You understand that, right? Do you understand what my name means to people? Yes! Your name has been my whole life.
And that makes you angry? Do you know how lucky you are? George, let him read the letter.
Over the past year, I've been followed by multiple private investigators.
I have been frightened for my safety.
I've stopped seeing most of my friends.
I've struggled with depression.
My parents, your son and daughter-in-law, almost had to sell their house to pay hundreds of thousands of dollars in legal fees.
And the only reasons I can think as to why you continue to believe Elizabeth's lies You're the one who just admitted to being a liar.
The only reasons that make sense are that you are complicit in what Theranos is doing Ridiculous! Or Um Or what? That I'm losing my mind? That I have dementia.
The only way that I believe our relationship could be repaired at this point is if you stepped forward as the first board member of Theranos to come out against Elizabeth and her company.
I I love you.
Get out of my home.
Thank-thank you for the tea.
Jared Leto's presenting me with the award.
- He's an actor.
- Oh, that's fun.
So glamorous.
Uh, thank you for I just, I know it's been a hard couple weeks, and I feel like you've just, you've become a friend, Linda.
So I think I I don't have many friends, so Oh, well.
You have arrived.
Thank you.
Hi, I'm Gary Yamamoto from the Centers for Medicare and Medicaid Services.
I'm here to inspect the labs.
You have arrived.
I can't figure out how to turn this thing off.
Uhh What is he eating? Is that a snack? - I can't see.
- Is it, uh, is it fruit? Is it grapes? We have to show him the lab.
We knew this could happen.
Maybe we can get away with a fine.
He can shut down the labs.
- We don't know that yet.
- Who complained to CMS? Somebody had to have complained.
Do you think it was Mark or Tyler? He just went on record with Carreyrou.
I'll find out.
I find out and nail the motherfucker.
I'm so sick and tired of wasting time on this bullshit instead of on what really matters.
Yes, the products? Yes.
The rules are outdated.
How can we actually get anything done? How can we make any changes if we're being hunted? Hunted and harassed by the government.
Who's telling them what to do? Quest, Labcorp? Maybe.
But we do have to talk to him at some point.
So what are we going to do? - Who's going to sit with him? - Um Um Uh, one, one of us should talk to him.
- Oh, definitely, definitely.
- Yeah.
Or we go in together.
Yeah, maybe.
Well, from a legal perspective, I, I think that we should keep Elizabeth out of it.
Really? Yeah, I mean, I-I-I I'm not afraid of, of talking to him or, you know, answering questions.
I don't think that you should.
You can do it.
Alone? Well, I have that ceremony tonight, and I think that's going to be really good for our image.
What's the award? I'm one of the women of the year.
I'm so lucky to have you.
You can do this.
You knock the legs out from under him.
You run circles around him.
You do the presentation.
You sell him on us.
The PowerPoint.
What do you mean? I don't need to see a presentation.
I just need to see the labs.
Where's Elizabeth Holmes? Well, I'd like to talk to whoever it is you work for.
We're going to talk to somebody.
We're going to contact your superiors There's no one to talk to.
I'll probably be holed up here for a few days.
I've got my checklist.
I'll just work my way down the list and write a report.
When is the report coming out? You won't have to wait too long.
Holy shit! Two years.
They shut her down for two years.
She won't come back from this.
- Go.
- Oh, I'm going to write it.
Federal bureaucracy.
Red tape.
It is beautiful.
- Go write - It is slow and boring and beautiful.
Go! I just fell in love with federal bureaucracy, and I don't care who knows it! This report is going to come out.
Somebody probably already leaked it.
We're going to have to do something.
I'm going to have to make a move.
Do you remember the first time you spoke to me? In Beijing? I was just remembering.
I was going back over old emails, text messages.
Why would you do that? I told you.
I wanted to remember.
Why? It's romantic to look over old texts.
Are you threatening me? Have you been speaking to a lawyer? Yes.
I called a lawyer.
I have to protect myself.
From what? Do you think that we did something wrong? Or did you do something that I didn't know about? You think that I did things that you didn't do? Did you? I don't know everything that you did.
If you did something wrong, you should tell me.
What did you do, Sunny? Maybe I could help you.
I could set you up with some good lawyers.
So I'm taking the blame? I'm taking the blame? I worked for six years day and night to help you.
This was your dream.
Your passion.
Not mine.
I know how hard it's going to be to transition.
- Transition? - Transition out of the company.
But you should know that I am so grateful to you for everything that you've done.
You've known me since I was a girl.
How old was I when, when I met you? I was barely 18.
You've taught me everything I know.
You are good.
So I just want you to know that this is going to be really hard for me to handle emotionally.
I'm not leaving until we break even.
We'll do this together.
And I will be by your side until the end.
I can't leave like this.
I, I can't.
We will talk and find the perfect focus and perfect plan.
And we'll execute with our heads down and build a new product and break even.
You need me until then.
We're tied together.
Of course.
But where will you live? What do you mean? The house is in my name.
- Hello.
- It's John.
I just wanted to let you know that I just got word that CMS is shutting down the Theranos labs.
- Wait, what? - For two years.
Erika, did you hear me? I want to make sure that you know that this is happening because of you.
Because of the letter that you wrote.
And I know what it took to sign your name and Actually, I don't.
But, uh, you saved people's lives.
Erika, are you there? Um, I probably, I shouldn't be talking to you on the phone right now but thank you.
Hello, Miriam.
Who's Miriam? That's not my name.
Do you know where Elizabeth is? I thought you knew she went home right after the board meeting.
What board meeting? It's seven o'clock in the morning.
She said to let you sleep, that she would catch you up.
I respect your decision.
- My decision? - To step down.
It's the right thing to do for Elizabeth.
What is your current relationship with Sunny Balwani? We haven't talked in a long time.
What happened to the relationship? - What do you mean? - How did it end? - The personal relationship? - Yes.
Elizabeth! Elizabeth! You know, I, I think when he joined the company, it was when we started working together, It was a very intense working relationship.
And there, this sort of romantic piece that was there in the beginning died.
I, I don't think it happened in, in one moment.
I, I think it just became clear that that we were colleagues.
Balwani is no longer at Theranos, correct? - That's right.
- Why did he leave? It was time for new leadership and, um, a different leadership structure.
- Was it mutual? - Yes.
Elizabeth! Elizabeth! - In here.
- Elizabeth! You bitch.
- You bitch.
- What are you going to do? You said you would step down from my company, so you're stepping down.
I said on my terms! I said on my terms.
When we broke even.
- What is this? What is this? - I'm leaving I'm leaving you.
Now you're leaving me? - You said the house was in your name.
- So you go and run away behind my back? I'm going to get my own place.
This is how you treat someone who loves you? Who's loved you for years? Oh my god.
I'm going to take a few of my things now.
- There's nothing there.
- And someone I trust is gonna There's nothing inside you.
I invented you inside my head.
For 12 years, I've been inventing you.
I made you up.
You're not real! You don't have feelings! You aren't a person.
You're a ghost.
You're nothing.
You're nothing! You're not real.
You're nothing.
And you're a mediocre software engineer.
Okay, bye.
You think you can get rid of me and carry on? It's over.
They're going to come for us.
- We could go to jail.
- I have a lot of lawyers.
You have no idea what's about to happen.
Trust me, the world is a mean place.
Everyone has only been nice to you because of greed.
They won't stay.
They'll leave you.
Everyone will leave you.
And they'll say they didn't know anything.
And what are you going to say? I won't hurt you.
Can you touch this part up some? It's looking a little dead.
Did you know almost five million people watch his show every morning? - I had no idea.
- Chris.
- What? - You know, I don't need you.
- I, I can do this.
- It's impressive.
The lawyer said your brother might get deposed.
Is that true, Elizabeth? I don't know yet.
And you got rid of Sunny.
I had no idea he was mismanaging the lab so badly.
Just coming in to wish you good luck.
Well, that's great.
You know, we were just talking about Sunny.
How glad we are that he's gone.
Well, Linda has been over the talking points.
Now this interviewer will be very hard on you, but that's your opportunity to apologize.
Yes, apologize.
And then she can just move on from this.
Own up to the mistakes Sunny made and then talk about how you're going to move the company forward.
And we've gone over the wording of the apology and we feel good about it.
Yes, well, this is going to be great.
We're behind you, and they have set up that conference room with a live feed so we can watch.
Is your makeup done? You look different.
You know, I'm just, I'll, I'll get someone to touch it up, yeah.
So, how are you doing? Did you have a chance to look at the apology that we drafted? - Yeah.
- I don't work in PR, but, uh, I think, I think what people want right now is some acknowledgment, right? Some emotional acknowledgment.
So, uh like they want to know that, that you're ashamed, you know.
Ashamed? Especially in that word, uh, "devastated.
" Keep it really warm.
Really sincere.
Well, it looks like they're ready.
So, you know, you know what, just don't even overthink it.
At all.
Just go be yourself.
The Centers for Medicare and Medicaid have shut down your lab.
One lab.
Okay, but that is a pretty big obstacle for a medical company that's been valued at over $9 billion.
It wouldn't be the first time that we've bounced back from a challenge.
To be frank, this seems like more than just a challenge.
CMS found critical violations throughout the laboratory.
In fact, they say that the lab posed immediate jeopardy to patient safety.
What's your response to that? I feel devastated that we didn't catch and fix the issue faster.
Do you hold yourself responsible for not hiring the right people, for not having critical oversight? Like I said, I feel devastated.
Uh, and we're looking to rebuild from scratch.
I'm, I'm a better leader now, and like I said, it's devastating.
You're running a healthcare startup.
You're dealing with people's lives.
You're dealing with test results that doctors use to diagnose their patients.
So you would have thought that you would have lab integrity in place from the get-go.
Like I said it's devastating.
But I, I believe that, that I don't believe that we put anyone's health in danger.
You ready to go? It's cold.
I think you may need a jacket or something.
George? George.
- Where is everybody? Where's David? - Oh, they just, um That was good.
Tha-that was a good job.
I'm just going to follow up on, on a few You looked great! It was a good start.
Oh, leave me alone.
Don't talk to us like that.
Chris, she needs to change her clothes.
You're going to rebuild.
You will.
You're just smearing it in.
Give it to me.
I think I'm very angry at you.
I am.
I'm very angry.
You told me that, when you visited me at school, after everything that happened, you told me to just put it away and forget it.
If you choose to forget certain things, do you think that's lying? I'll be outside.
I don't understand.
I knew it.
You were faking it.
- I was asleep.
- Liar.
Dude, you're a liar.
Oh, I love you.
I love you too.
Exhibit 264 purports to be a September 23, 2014, email from Elizabeth Holmes to Sunny Balwani with subject line "RE: Innovation payment letter.
" Have you seen exhibit 264 before? I don't remember, but I have no reason to doubt the email.
You just got to give me, like, one, one item of food.
- Anything.
- I, I don't know.
How do you not know? I don't.
MAN: Favorite food! Did Mr.
Balwani provide financial projections to investors? I can't remember specific instances sitting here.
There's these wind storms, and you have to wear goggles because it's so fucking dusty.
But like, you just feel so much love in the air.
And then at the end, they burn this 60-foot, like, wooden structure of a man and But it's just like all your fears and your inhibitions, they just Like, everything goes up in, like, a big fire.
And it's just so fucking cleansing.
You're beautiful.
You're beautiful.
How old are you? How old are you? I don't remember.
I don't remember.
For VIPs, would Sunny let you know how the demonstrations went? I don't specifically remember.
Did you ever tell investors or prospective investors that I, I don't remember.
I can't recall.
I, I don't recall.
I, I don't remember.
When was the last time you had contact with Sunny Balwani? Uh, I think early this year.
And how did you meet with him? It wasn't a meeting.
I, I think I was running and he was running at the same time.
And we passed each other and said hello.
Was there any substance to the conversation? He said hello, and and that was it.
Thank you, everyone.
Thank you.
Why do you call me that? Because you look like a Lizzy.
- I do? - Mm-hmm.
Hello, Mr.
Schultz, pleasure to meet you.
I'm sure it is.
I understand that you are in town on business with your foundation.
You do your homework.
You said on the phone that there was something you wanted to discuss.
It has to do with my family.
All of this has torn us apart.
In fact, half of them no longer speak with me.
And I put the blame for that on you.
Well, uh, with all due respect, sir Let me finish, Mr.
I put the blame for that on you.
But I was wrong to do it.
I abandoned my own grandson.
I slandered him.
Not at the dinner table.
Not in the privacy of our home.
In the press.
For the world.
You think perhaps you just didn't want to admit you were wrong? I'm not here to be one of your sources.
What I say to you here is not for attribution.
This is my statement.
I want to publicly recognize Tyler's integrity.
I want him to have as much of his good name back as I can give him.
Thank you for your time, Mr.
It's not that I couldn't admit that I was wrong.
I just chose not to see it.
Like an old fool.
Isn't it amazing how far decent people will go when they're sure they're right? With this SEC settlement agreement, you're looking at hundreds of thousands of dollars in costs.
That plus the shareholder settlement.
That's priced in the millions.
Um, Rupert Murdoch sold all of his shares for a dollar, so you should start plans for bankruptcy.
Could you draw up a bankruptcy plan? I can't.
Why? I don't work for you anymore.
You stopped paying me.
I'm actually looking for a new job, but I don't know.
I don't know.
No, no one will hire me.
Silly dog.
Come here, you.
You seem happy.
Are you happy? Can I tell you a secret? I don't, I don't know.
We don't have attorney-client privilege.
I have a boyfriend.
- Oh.
- His name is Billy.
Um, I have a picture I can show you.
I don't, it's okay, I don't He's young.
He's, he's in his, he's in his 20s.
Oh wow, that must be different for you.
- What do you mean? - Because Sunny's so much older.
I can't believe I didn't know.
Wow, you guys are such good liars.
Yeah, you know, uh, actually, Linda, I'm pretty busy.
Come here, come here.
You were young when you met Sunny, and now you're dating this younger guy.
So it's just like you're moving backwards.
Yeah, I'm just, you know, just taking a moment to enjoy myself and have fun.
Oh, is that what we're doing now? Yeah, I guess.
I mean, you're legally barred from running a company for the next ten years.
So, yeah, I guess it makes sense.
Get a dog and a boyfriend and just have fun.
Yes, you could go to jail for 20 years, but, yeah, just pretend what you did never happened.
I was trying to help people.
- Do you really believe that? - We had a clear purpose.
Ultimately, the healthcare industry just was not ready for real innovation.
Is there something wrong with you? The tech companies don't have to work under these restraints and regulations.
Do you have any idea of what you did? I failed to deliver.
I failed.
But failure is not a crime.
- You hurt people.
- I actually have to go.
But I'll be back and we can keep talking.
You hurt people.
You hurt people.
Okay? I worked here, so I have to live with that somehow, but I'm not sure that you understand.
I mean, you must.
Right? Because Because I think people have hurt you.
Right? Elizabeth? Come on.
Elizabeth! You hurt people! Are you Lizzie? Hi.
Yeah, I'm Lizzie.

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