Blood-testing company Theranos is set to dissolve

Holmes who was once considered a wunderkind of Silicon Valley launched Theranos in 2003 in Palo Alto California pitching its technology as a cheaper way to run dozens of blood tests

Holmes who was once considered a wunderkind of Silicon Valley launched Theranos in 2003 in Palo Alto California pitching its technology as a cheaper way to run dozens of blood tests

Besides Fortress, Theranos owes at least $60 million to unsecured creditors, Taylor said.

Ms Holmes herself became a business pin-up, wearing a black turtleneck jumper that drew comparisons with Steve Jobs, while profiles regularly pointed out that, like other successful tech entrepreneurs such as Bill Gates and Mark Zuckerberg, she was a college drop-out.

Prosecutors say they engaged in a multi-million dollar scheme to defraud investors, doctors and patients. By 2014, they were estimated to be worth $9 billion. Taylor said the investment bank with which Theranos was working reached out to more than 80 potential buyers, but none were interested.

"Unfortunately, none of those leads has materialized into a transaction. We are now out of time", Taylor wrote in the email, a copy of which was published by the WSJ (paywall).

Shareholders are expected to receive nothing after the firm's collapse.


Theranos founder Elizabeth Holmes, who started the company when she was 19, was celebrated as a rising Silicon Valley star until it became clear that numerous claims about the company's supposedly revolutionary blood test were bogus.

Ms Holmes raised over $700m in funding for Theranos, but when she tried to pitch the technology to the US Department of Defense in 2012, her pitch was rejected due to the devices' unpredictable results. But that unraveled spectacularly under the scrutiny of Wall Street Journal investigative reporter John Carreyrou. Walgreens ended its relationship with Theranos in 2016.

The company attracted the attention of U.S. regulators, including the Centers for Medicare and Medicaid Services, which in April a year ago took away the company's clinical laboratory testing certificate.

The SEC charged Holmes and former President Ramesh "Sunny" Balwani with deceiving investors into believing the portable blood analyzer could conduct comprehensive blood tests from drops of blood. Holmes settled with the SEC by agreeing to pay $500,000 in fines and penalties, while Balwani is fighting the charges.

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