Blood-testing startup Theranos said to be closing


Over time, the company also anticipated making the nanotainers available in major store chains like Walgreens, allowing patients to carry out their own blood tests and saving them a trip to the doctor.

Theranos, the once-celebrated Silicon Valley blood testing firm, is about to dissolve itself months after top executives were indicted for defrauding investors, the Wall Street Journal reported on Wednesday. Former CEO Elizabeth Holmes' black turtleneck and lofty goals drew comparisons with Apple's Steve Jobs.

Theranos founder Elizabeth Holmes settled a shareholder lawsuit in July that was created to recover whatever can be salvaged from the firm, the Journal said.

She and Balwani pitched a tale in investor presentations, product demonstrations and media articles about the startup's key product - a portable blood analyzer - which they claimed could revolutionize the industry by inexpensively conducting comprehensive tests from drops of blood from fingers. "We are now out of time", Taylor wrote in the email, a copy of which was published by the WSJ (paywall). But that unraveled spectacularly under the scrutiny of Wall Street Journal investigative reporter John Carreyrou.

Theranos was once valued at $9 billion. They have negotiated a deal with Fortress Investment Group, their lender, where Fortress retains what intellectual property Theranos had left.

Theranos will seek to pay unsecured creditors its remaining cash in coming months, the letter said.

Ms Holmes raised over $700m in funding for Theranos, but when she tried to pitch the technology to the US Department of Defense in 2012, her pitch was rejected due to the devices' unpredictable results.

In March, Ms Holmes settled charges with the Securities and Exchange Commission, a top U.S. financial regulator.

But prosecutors allege that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood-testing technologies going back to at least 2013. Holmes settled with the SEC, agreeing to pay $500,000 in fines and penalties.