Theranos Gone for Good - Company Says It Will Disolve

Theranos Gone for Good - Company Says It Will Disolve

Theranos founder Elizabeth Holmes, who started the company when she was 19, was celebrated as a rising Silicon Valley star until it became clear that numerous claims about the company's supposedly revolutionary blood test were bogus.

In a new Wall Street Journal piece, John Carreyrou-the journalist who exposed Theranos' misleading claims about the efficacy of its tests-reported that the company will next week begin to formally dissolve.

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

Holmes was succeeded as CEO by Taylor in June this year, after the former was indicted with nine counts of wire fraud and two counts of conspiracy to commit wire fraud by a U.S. grand jury. Both executives have denied the charges, according to the Journal. At one time, Holmes was the youngest self-made female billionaire. Instead of the familiar needles, tourniquets, vials, and bandages of the past, Theranos offered a comprehensive blood test that required just a finger stick and a single drop of blood. Her bold talk and black turtlenecks drew comparisons to Steve Jobs.

Holmes, who did not admit wrongdoing, was fined $500,000 and ordered to relinquish 18.9 million shares in the company.

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]".

When 19-year-old Elizabeth Holmes developed the idea of using microchip-enabled technology to conduct blood tests, she realized that she needed to build a company that would make the testing cheaper, more convenient, and accessible to consumers.

Theranos was started in 2003 with a goal to revolutionize medical blood tests and was worth an estimated $9 billion at one point.

Theranos's founder and chairman, Ms. Holmes, and her ex-boyfriend, Ramesh "Sunny" Balwani were indicted on nine counts of wire fraud and two counts of conspiracy to commit wire fraud in June.

In 2016, federal prosecutors opened criminal investigations into Theranos's promises to investors, and in March 2018, the SEC sued Elizabeth and her company for fraudulently raising more than $700 million from investors.

The Journal's investigation marked the beginning of the end of Theranos.

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

FOX Business' Brittany De Lea contributed to this article.



Related Posts

Samsung's going to release its foldable smartphone this year
The smartphone may sound similar to a traditional flip phone which relied on a hinge to connect the two parts of the handset. Lenovo is working on bendable phones and tablets, and Microsoft has been dreaming of a dual-screen Surface device for years.

Eden Hazard sends Premier League title warning, makes Liverpool claim
However, when pressed, the 26-year-old opted for Manchester City . We just try to do our job, win games and then we will see".

‘Lodestar’ and ‘first principles’: Twitter’s hunt for the White House turncoat
The Times says it knows who the author is but isn't disclosing their identity in order to protect their job. At the same time , I can't say whether we would have done it or not, so I don't want to sound churlish.

Plane quarantined at Kennedy Airport amid reports of 100 ill passengers
The passengers remained on the airliner for more than three hours and medical screens were done on all 521 passengers. Emirates flight 203, a double-deck Airbus A388 carrying about 500 passengers, landed shortly after 9 a.m.

Burt Reynolds passes away at 82
Reynolds suffered cardiac arrest on Thursday and passed away at a hospital in Florida while surrounded by his family. Reynolds eventually paid her $234,794.13 in the divorce.

Paraguay moving embassy back to Tel Aviv; Israel shuts mission in Asuncion
He also said he hopes Israel "will not be bothered" by the decision, and that the "friends and historic allies" will remain so. The announcement came hours after Paraguay moved its embassy back to Tel Aviv, which is just four months after moving it.

Captain Marvel's Brie Larson Teases Internet-Breaking News for Tomorrow
The air-force-pilot-turned-intergalactic-hero is the latest entrant in the Marvel Cinematic Universe or the MCU as fans dub it. Lee Pace returns as Ronan the Accuser , Djimon Hounsou returns as Korath , and Clark Gregg returns as Phil Coulson .

NY plane quarantined amid reports of ill passengers
Passengers aboard the double-deck Airbus A380 aircraft had reported similar symptoms, including cough and fever . Medical workers in masks and gloves took passengers' temperatures on the tarmac while evaluating them.

India signs crucial pact with USA on access to latest defence tech
"We have agreed to speed up the process of India's entry into the Nuclear Suppliers Group", Swaraj said. In the US military scheme of the world, India is in the US' Pacific Command area of responsibility.

Mom charged with murder in case of missing son
Charisse Stinson reported her son missing earlier this week and an Amber Alert was issued for Jordan Belliveau on Monday. Police searched woods, divers searched ponds, and a sketch of an apparent suspect spread across social media.

© 2015 ExpressNewsline. All Rights reserved.