Elizabeth Holmes trial: SF hedge fund manager testifies about Theranos investment

SAN JOSE - A San Francisco based hedge fund manager was set to continue his testimony Wednesday in the federal fraud trial against Theranos founder Elizabeth Holmes.

Brian Grossman, a managing partner with PFM Health Sciences, invested $96 million in the failed blood testing startup after meeting with Holmes and others at the company starting in 2013.

He testified Tuesday that Holmes falsely told him Thearnos' technology was verified by major pharmaceutical companies and was being used by the military. 

Follow below for live updates about the trial from KTVU's Evan Sernoffsky who is reporting from the federal court in San Jose. (Mobile users click here to follow the blog if it does not display below.)

He also said he was convinced that Thearnos could conduct some 1,000 blood tests and that he had no idea the company was using modified third-party analyzers for many of its tests.

Holmes' defense attorneys will continue cross examining Grossman before the prosecution calls its final witnesses this week.