Embattled blood-testing firm Theranos to dissolve

Faith Castro
September 8, 2018

The company aims to seek board and shareholder consent for the Fortress settlement and corporate dissolution later this week and proceed with the actions starting Monday, Taylor said.

A letter to Theranos shareholders was picked up by The Wall Street Journal, revealing Taylor's lament that "w$3 e are now finally out of time".

The announcement comes almost three months after Theranos founder and former chief exective Elizabeth Holmes and former chief operating officer Ramesh Balwani were charged with criminal fraud.

In a new Wall Street Journal piece, John Carreyrou-the journalist who exposed Theranos' misleading claims about the efficacy of its tests-reported that the company will next week begin to formally dissolve.

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Mr Taylor said the firm had breached the terms of its loan agreement with investor Fortress Investment Group, meaning the firm was now entitled to sell or take ownership of Theranos' intellectual property and assets.

The company pivoted to focus its resources on a different product area - clinical lab testing, including the ubiquitous blood test. Most of Theranos's two-dozen remaining employees worked their last day on Friday, Aug. 31.

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The once-heralded blood-testing startup Theranos is shutting down, according to a media report.

The indictment by the USA attorney in San Francisco alleging wire fraud follows claims by the Securities and Exchange Commission that Theranos, Holmes and Balwani lied about the company's technology while raising more than $700 million to build the medical-testing startup. In 2015, Forbes declared Holmes to be the world's youngest self-made female billionaire - with a personal net worth of $4.5 billion.

Holmes and Balwani in March were also charged by the Securities and Exchange Commission with "massive fraud".

It accused them of orchestrating an "elaborate, years-long fraud in which they exaggerated or made false statements about the company's technology, business, and financial performance".

Holmes and the company settled the SEC's allegations.

Investors poured almost $1 billion into Theranos and three former USA cabinet secretaries, two former United States senators, a retired admiral and a retired Marine Corps general joined its board. She eventually convinced her chemical engineering professor to join her, and he gave up his Stanford tenure to join her new company Theranos, which is an amalgam of the words "therapy" and "diagnosis".

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