Theranos to formally dissolve

Blood-testing firm Theranos to formally dissolve report says

Blood-testing firm Theranos to formally dissolve report says

Taylor's email appears to herald the final stages of Theranos, which was once one of Silicon Valley's most lauded startups, drawing investments from Oracle (ORCL) founder Larry Ellison and media mogul Rupert Murdoch.

Taylor, who took over from her as CEO in June, said in the email cited by The Journal that Theranos was in default for a loan from Fortress Investment Group, which now has the right to take ownership of all of its assets. That came three months after the Securities and Exchange Commission charged Theranos with "massive fraud."

She carefully crafted her image as well, wearing nearly entirely black turtleneck sweaters that earned her the moniker in Silicon Valley as 'the next Steve Jobs'. An investigation by The Wall Street Journal in October 2015 revealed that Theranos was having trouble with the accuracy of its results, and a federal investigation began six months later.

It says most of the company's remaining two dozen employees finished work last Friday and that Fortress, the United States private equity firm, is set to take control of the company's patents - leaving just $5m to be distributed among unsecured creditors.

Wednesday's announcement comes almost three months after Theranos founder and former CEO Elizabeth Holmes and former Chief Operating Officer Ramesh Balwani were charged with criminal fraud.


She launched Theranos in 2003 in Palo Alto, California, pitching its technology as a cheaper way to run dozens of blood tests.

The big-name investors who poured money into Theranos will get nothing. Most of the company's employees worked their last days on the previous Friday, August 31, with CEO David Taylor and a few support staff remaining on payroll for a few more days.

If convicted, they could face prison sentences that would keep them behind bars for the rest of their lives, and total fines of $3.69m each. Mr. Balwani was Theranos's president and chief operating officer until he retired from the company in May 2016. The pharmacy chain has said it was misled by Theranos about its technology and prospects. Instead of the familiar needles, tourniquets, vials, and bandages of the past, Theranos offered a comprehensive blood test that required just a finger stick and a single drop of blood. Behind the scenes, it performed the vast majority of the tests with commercial analyzers purchased from other companies.

That same June, Walgreens formally terminated its relationship with Theranos, shutting down all 40 of its Arizona-based testing centers and effectively cutting Theranos off from bringing in new customers. It has about $5 million left that will be distributed to investors.

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