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Theranos bleeds dry, company to dissolve

08 September 2018
Theranos bleeds dry, company to dissolve

Taylor said the company is looking to pay its remaining cash - roughly $5 million - to creditors, which could take about six to 12 months.

However the technology was flawed and the company, its CEO Elizabeth Holmes and president Ramesh "Sunny" Balwani were charged with fraud by the US Securities and Exchange Commission. The company claimed it could perform a number of traditional lab tests with just a few drops of blood.

In June, an incredibly overconfident Holmes was briefly reported as interested in starting another company, despite the SEC settlement preventing her from serving as an officer of a public firm for a decade.

Prosecutors say they engaged in a multi-million dollar scheme to defraud investors, doctors and patients.

But Theranos came under scrutiny after the Journal published articles questioning its claims.

"Holmes and Balwani knew that many of their representations about the analyzer were false", the Justice Department said when the charges were announced in June.

CEO and General Counsel David Taylor spoke of "difficult news" about the California-based company's future to stockholders on Tuesday, in an email acquired by The Wall Street Journal.

The unraveling of Theranos came after reports alleged it was not using its own technology in numerous blood tests it performed. Theranos will begin its dissolution proceedings on September 10. The Journal reports that most of the company's employees - reported to be down to fewer than two dozen as of April, a drastic fall from a peak of 800 - worked their last day on August 31.

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.

Lawyers for the company did not respond to requests for comment.

After years of damning headlines, federal investigations, lawsuits, fines, infighting and desperate attempts to save the furniture, Elizabeth Holmes' Theranos is officially dead and buried.

Holmes and the company settled the SEC's allegations.

Balwani issued a statement through a representative: "As an investor who put millions of dollars of his own money and almost seven years of his life into Theranos, Mr. Balwani was saddened to see the letter from Theranos to investors [Tuesday]".