Rise and fall of Theranos puts Silicon Valley firmly in focus

Blood-testing firm Theranos to formally dissolve report says

Mr Taylor, who also serves as general counsel to the firm, said that Theranos had engaged the services of investment bank Jeffries to try to "maximise the value of the company" for shareholders.

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.

After the charade unravelled and the US Securities and Exchange Commission (SEC) charged its Steve Jobs-imitating CEO Elizabeth Holmes and former president Ramesh Balwani with "massive" civil fraud, the company laid off almost all of its 125 remaining staff in April 2018. The Wall Street Journal has however reported the company's claims that the "unsecured creditors" will be paid the debt amount before the company closes down.

"She is now telling people she is going to start a new company", he said. If convicted, they will face up to 20 years jail time and a fine of $250,000 per count. At one time, Holmes was the youngest self-made female billionaire.

A controversial health tech firm which made headlines after fraudulent claims over the accuracy of its blood-testing technology has reportedly closed its doors.

It was briefly one of the most celebrated companies in Silicon Valley - but Theranos, a company valued at $9bn (£7bn) at its peak, will soon be no more. Former CEO Elizabeth Holmes' black turtleneck and lofty goals drew comparisons with Apple's Steve Jobs.

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

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

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 didn't respond for a request to comment outside regular business hours.

The roster of Theranos investors-most of whom poured money into the company after its commercial rollout in Walgreens stores in late 2013-included the Waltons, heirs to Walmart Inc. founder Sam Walton; Atlanta's Cox family; the family of Secretary of Education Betsy DeVos; and Rupert Murdoch, executive chairman of 21st Century Fox and of News Corp, the Journal's parent company.

FOX Business' Brittany De Lea contributed to this article.

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