Embattled blood-testing firm Theranos to dissolve


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

The executives have denied the charges and face a coming criminal trial.

Theranos did not immediately respond to Reuters' request for comment.

The end is nigh for Theranos, the allegedly fraudulent blood testing firm, according to a new report.

A notoriously secretive company, Theranos shared very little about its blood-testing machine, nicknamed Edison, with the public or medical community.

Theranos laid off most of its staff earlier this year. But that unraveled spectacularly under the scrutiny of Wall Street Journal investigative reporter John Carreyrou. But her net worth was later revised down to nothing.

It is the latest twist in one of the most dramatic rise-and-fall stories United States business has ever seen and comes three months after Elizabeth Holmes, who founded the company at the age of 19, was charged with fraud along with Sunny Balwani, her former lover and the company's former chief operating officer.

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.

Holmes and Balwani both pleaded not guilty at their arraignment.

Holmes and Balwani in March were also charged by the Securities and Exchange Commission with "massive fraud. We are now out of time", he wrote.

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.

Theranos was once valued at $9 billion.

The Fortress Investment Group loaned $65 million to Theranos a year ago, with one condition being that Theranos maintain a cash level that has now been breached-hence the dissolution process that will play out over the coming months. He said it owes at least $60 million.



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