A US company which claimed to have developed revolutionary blood test technology is to dissolve, according to reports.
Emails to Theranos’ shareholders, which have been seen by the Wall Street Journal, reveal that the company will dissolve and will have to pay unsecured creditors its remaining cash in the next few months.
Founded in 2003, the Silicon Valley-based company claimed to have technology that could run multiple tests on a raindrop-sized pinprick blood sample, rather than the multiple vials usually required.
In June the company’s founder, Elizabeth Holmes, and its former COO, Ramesh “Sunny” Balwani, were both charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud.
The pair were both accused of being involved in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients in a bid to promote the company.
Holmes also stepped down as CEO, with David Taylor being named as her replacement.
In an email to shareholders sent on 4 September, Taylor confirmed the company was dissolving and that the majority of Theranos’s two-dozen remaining employees worked their last day on 31 August.
The case was assigned to a district judge for further proceedings, though no date has been set for Holmes’ and Balwani’s trial.
20 September 2018 @ 15:36
Not everything that shines is Gold. It’s the difference between an Entrepreneur-ship and Entrepreneur-thief.
17 September 2018 @ 09:14
Hideous abuse of trust. It makes those of us working ethically as private providers of innovation look bad.
17 September 2018 @ 11:27
Hear, hear!