Theranos is about to shut down for good

Blood-testing startup Theranos is now set to formally dissolve just weeks after its CEO Elizabeth Holmes was charged with criminal fraud for allegedly defrauding investors doctors and the public in a multi-million dollar scheme

Theranos Chief Executive Officer Elizabeth Holmes speaks on stage at the Glamour Women of the Year Awards where she receives an award, in the Manhattan borough of NY, U.S., November 9, 2015. Both executives have denied the charges, according to the Journal.

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

Today, David Taylor, who was appointed CEO back in June, penned a letter that said Theranos will dissolve after paying creditors what remains of their cash. To read on the go, sign up today to get biotech news and updates delivered right to your inbox! Theranos didn't respond for a request to comment outside regular business hours. The Journal reports that most of the company's remaining employees worked their last day on August 31, while Taylor and a few others have just a few more days on the payroll.

The once-heralded blood-testing startup Theranos is now set to formally dissolve just weeks after its CEO was charged with criminal fraud.

According to the indictment, the company gave doctors - and through them, their patients - "materially false and misleading information concerning the accuracy and reliability of Theranos's blood testing services".

The downfall of Holmes, who settled with the Securities and Exchange Commission in March over fraud charges it announced against her, has hastened the collapse of her company.

"We are now out of time", Taylor said. They have negotiated a deal with Fortress Investment Group, their lender, where Fortress retains what intellectual property Theranos had left. By 2014, they were estimated to be worth $9 billion.

It says most of the company's remaining two dozen employees finished work last Friday and that Fortress, the USA private equity firm, is set to take control of the company's patents - leaving just $5m to be distributed among unsecured creditors. He said it owes at least $60 million.

However, in October 2015, the Wall Street Journal published a front-page story that claimed the technology was flawed and that the company's former chief scientist had taken his own life two years earlier after telling his wife the technology did not work.

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