Embattled blood-testing company Theranos will dissolve

  • Embattled blood-testing company Theranos will dissolve

Embattled blood-testing company Theranos will dissolve

Holmes, once considered a wunderkind in Silicon Valley and the youngest female billionaire in the United States, had pitched Theranos' technology as a cheaper way to run dozens of blood tests.

Theranos will dissolve itself and pay unsecured investors its remaining cash according to an article in the Wall Street Journal. U.S. pharmacy giant Walgreens showed interest in the company, partnering to offer the blood tests in itsstores. The company grew at a rapid rate in the following ten years, backed by investors who fell in love with Holmes' idea.

In June, Holmes appeared in federal court in San Jose to face charges of criminal fraud, and resigned as CEO of Theranos.

Blood-testing company Theranos plans to go out of business in the wake of one of the tech community's biggest frauds, the Wall Street Journal reported Tuesday night.

Theranos shared very little about its blood-testing machine, nicknamed Edison, with the public or medical community. Founded in 2003 by then teen-age Stanford dropout Elizabeth Holmes, Theranos grew into a $9 billion firm based on its promise of a blood test requiring only a finger prick, rather than a vial of blood.

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. Her bold talk and black turtlenecks drew comparisons to Steve Jobs.

Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services effectively banned Theranos in 2016 from doing any blood testing work at all. The firm's remaining employees worked their last day on August 31. Holmes settled with the SEC, agreeing to pay $500,000 in fines and penalties.

There are many outstanding questions surrounding Theranos, not least the outcome of Ms Holmes and Mr Balwani's forthcoming fraud trial, as well as whether the remaining patents being acquired by Fortress will turn out to have any lasting value. The company is doing this after breaching a covenant in a loan made by Fortress Investment Group to the diagnostics company.

The company did not immediately respond to Ars' request for comment.

Aforementioned CEO David Taylor's approval rating hovered around 52% until Glassdoor shut down the metric after July 7, which it will sometimes do when a company is going through a leadership transition or time of crisis.