Theranos is finally dead, company to wind down

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The company plans to get everything finished as soon as possible, proceeding next Monday with a complete dissolution of the organization.

The Wall Street Journal reported Wednesday that Theranos would formally dissolve, citing an email to the company's shareholders from David Taylor, the company's CEO and general counsel.

Prosecutors alleged that they defrauded investors out of hundreds of millions of dollars and defrauded doctors and patients.

We've covered Theranos numerous times. Theranos is known for its false claims to have devised blood tests that only needed very small amounts of blood. In 2015, Forbes declared Holmes to be the world's youngest self-made female billionaire - with a personal net worth of $4.5 billion.

Theranos, which owes at least $60 million to unsecured creditors, will turn over its assets and intellectual property to credit and investment firm Fortress, says the e-mailed letter, first reported by The Wall Street Journal.

While Theranos touted its technology as revolutionary, the blood analyzer had only been successfully tested a few times, the Securities and Exchange Commission concluded.

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. The story raised concerns about the accuracy of Theranos' blood-testing technology, which put patients at risk of having conditions either misdiagnosed or ignored.

Holmes and Balwani are accused of faking demonstrations of the technology, lying to investors about the anticipated returns, lying to the media, lying about the deployment of the technology on the battlefield, using third-party equipment to conduct tests while claiming to use Theranos's own gear, and misrepresenting the progress of a partnership with Walgreens (wba).

As part of the settlement, Ms Holmes had to return millions of shares to the privately held company and pay a $500,000 fine.

As for its business outlook rating - how employees believe the company will fare in the next six months - Theranos has been on a slow dive for over a year.

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]".

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