It will formally disband in the coming months, according to an email to shareholders obtained by The Wall Street Journal.

Theranos, the blood-testing company founded by Elizabeth Holmes, is going out of business.

The Wall Street Journal is reporting that the blood-testing company is about to wind itself up after failing to find a buyer.

Neither Taylor nor representatives for Palo Alto, California-based Theranos immediately responded to Reuters' requests for comment.

The biotech company, which was once valued at $9 billion, built its reputation on the claim that it had come up with a cheaper, more efficient alternative to traditional medical tests. In reality, the SEC says, the analyzer could only complete a small number of tests, and the company "conducted the vast majority of patient tests on modified and industry-standard commercial analyzers manufactured by others".

The Journal's investigation marked the beginning of the end of Theranos. But her net worth was later revised down to nothing.

Federal prosecutors have charged Holmes and her deputy, Ramesh Balwani, with fraud against investors, doctors and patients. Founder and former CEO Elizabeth Holmes is facing criminal charges.

Serena Williams through to a 13th US Open semi-final
The defeats of Stephens and Pliskova completed the exodus of top 10 seeds. This is the American tennis legend's 18th US Open tournament.

Holmes and Balwani both pleaded not guilty at their arraignment.

As Ars reported previously, in March 2018, the Securities and Exchange Commission filed civil charges against Holmes, Balwani, and Theranos, alleging that they had committed "massive fraud".

Taylor's email to shareholders was also reported by the Financial Times.

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.

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.

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


COMMENTS