Why a Theranos whistleblower decided to come forward: Part 2

Tyler Shultz, a Theranos employee and grandson of one of Theranos' board members, said he and other employees were concerned that Theranos was providing patients with inaccurate test results.
7:49 | 03/16/19

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Transcript for Why a Theranos whistleblower decided to come forward: Part 2
This special edition of Nightline did drop that continues. Here again rip that picture. Wall Street Journal investigative reporter John Kerry room was about to globally an office parent hopes. Having gathered enough information from inside sources like Tyler shields in the hearing room was ready to publish. Me as he underestimated Hui was up again. Good afternoon my name is David Boies. Outside counsel. Fourth there dose was David's voice David Boies was known for being one of the most aggressive litigators of his time. One of Weinsteins lawyers he was on the winning side of history making cases it's David. Poison to his associates of Boies Schiller came to our newsroom. Their demeanor was very aggressive they proceeded to tell us that I had misappropriated. Terrorist trade secrets. 43 page long letter comes a few days after that. That letter essentially a searing indictment of me as a journalist. The threat is very explicit that they're just going as soon as we proceed any further with the story. But it wasn't just the journal that there are nose was threatening. My dad asked me. I didn't speaking with the Wall Street Journal reporter and I was. Yes. And he. Needs. They know you're totally. You know how aggressive they are movies are then I called my grandfather and she's there's a one page confidentiality agreement room. And as you sign and there will make everything go ahead as. That sounds fine but I can talk to you in person first without any lawyers around. He's. Yes. Tyler shows up in his grandfather's place and not he thinks he's really gonna talk just was grandfather. IA reiterated. My concerns and she continued and believe me when Elizabeth had told in. And then she just says whatever the case may be willing to sign this one page. Document to make everything go way. Mess in the unknowns at my son. And then you send their team Dennis lawyers here right now and I go get them. There's 72 lawyers can someone else. Well what we're was a reaction. Totaling spreads. His attorneys should come down and are extremely aggressive with Tyler. Try to get him a sign. Document. You know naming the journal's other sources. Did you ever sign anything. Never signed any. Tyler. With stands this unbelievable pressure my grandfather would say things like. Your career will be ruined and this article comes out over the course of several months his attorneys negotiate with their nose turns. Heads up Carson's parents plus a half million dollars in legal fees. But the stays firm and then in the end. I'm able to publish. On October 15 2015. And the Wall Street Journal ran the first of many reports stated among other claims that the company wasn't using its technology for all the tests it offers but instead it was using traditional machines are not from companies like Siemens to run the majority of its tests. Our panel that reporters won't. I wanted to do. Leave so damn week how great. Did it would be just for a shrewdest. We're gonna. But me turn out not to be so instead you start did you. She really big east's. What things going on here this is what happens when you work to change things ends. First they think you're crazy than this what you and then all of a sudden change the world and. How come from not. Enough novelists and clerks they help with this belief in yourself what Elizabeth. Empire began tumbling down in a matter of months Walgreens. Housing plans to open any new wellness centers ultimately terminating its contract and suing Aron it was the two companies settled for an undisclosed sum would no finding or admission of liability from the federal lab inspectors issued a warning in the area was hasn't posed immediate did you ever need a patient health and safety. Forbes cut Elizabeth's net worth from four and a half billion dollars. Jazeera and from Sonny left Erin knows it may two when he sixteen. And that's the biggest blow yet this his rhetoric. She was finally forced to answer to the Securities and Exchange Commission as she was investigated for an alleged elaborate years long fraud case where's all the chicken poultry and in the country. Elizabeth's carefully crafted narrative began twin raffle. There were those hundreds of blood test she said her signature technology could supposedly her courtroom and mixing it. Possible to do you. Any lab tests. From a tiny droplets from the finger how many tests connect time. I'm I don't know exactly what the number was there was probably. And tens of both tests that we see tens of testing means something less than a hundred best. Most clean she allegedly peddled to high powered board members was Daryn isn't technology to play. An emergency plans hospitals and plot out. It was fairness and captures nice average place. Was never displayed. As this divide between the lives of its grandiose vision vs reality became clear that. And after lengthy depositions with Elizabeth and sunny people on the inside. The FCC was now ready to bring civil charges Elizabeth Holmes charged with massive fraud her company's geragos raising more than 700 million dollars from investors third elaborate years long fraud now she and the company having US government agreed to settle the case and pay 500000 dollar fine. Elizabeth settled. With no admission of wrongdoing she got up with a slap on the wrist by the story's not over yet. She was about to face criminal charges for multiple counts of rock which could land her in jail for decades if convicted. Homes and or national Lonny wells pleaded not guilty. I would be shocked. Finished terrorists act behind walks.

This transcript has been automatically generated and may not be 100% accurate.

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