ibusinesslines.com November 20, 2018

Blood-testing startup Theranos is said to be shutting down

06 September 2018, 01:13 | Melissa Porter

Scandal-hit United States blood-testing start-up Theranos is to formally dissolve, the firm's chief executive David Taylor has told shareholders in an email.

Holmes founded the company in 2003 to develop technology that she claimed was able to conduct clinical tests on small amounts of blood.

The most damaging revelation in the article was that the nanotainers themselves were so flawed that Theranos had been using equipment made by other companies to carry out blood tests in its laboratories. Former CEO Elizabeth Holmes' black turtleneck and lofty goals drew comparisons with Apple's Steve Jobs.

She and Mr Balwani still face up to 20 years in prison and fines of millions of dollars if convicted of fraud.

Federal prosecutors have charged Holmes and her deputy, Ramesh Balwani, with fraud against investors, doctors and patients.

She carefully crafted her image as well, wearing nearly entirely black turtleneck sweaters that earned her the moniker in Silicon Valley as "the next Steve Jobs".

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.

The Wall Street Journal reported late Tuesday that Theranos CEO David Taylor emailed shareholders to announce the blood-testing company will dissolve.

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 was seen for a time as a rising star in Silicon Valley, appearing at events like the Women In Technology and Politics dinner hosted by Glamour and Facebook, the Vanity Fair New Establishment Summit and events hosted by the Wall Street Journal and TechCrunch. The SEC accused them of lying about the company's abilities, financial health and connections to the Department of Defense.

The Securities and Exchange Commission brought civil fraud charges against Holmes and Balwani earlier this year.

Holmes and the company settled the SEC's allegations. Balwani is fighting the charges.

Theranos founder Elizabeth Holmes was once lauded as the youngest self-made female billionaire.

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