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posted by mrpg on Thursday September 06 2018, @08:55AM   Printer-friendly
from the positive dept.

Theranos, Blood-Testing Company Plagued By Scandal, Says It Will Dissolve

Theranos — the Silicon Valley blood-testing startup whose former top executives are accused of carrying out a massive, years-long fraud — is shutting down.

David Taylor, who became CEO in June, said Theranos will dissolve after it attempts to pay creditors with its remaining cash. The news was first reported by The Wall Street Journal, which published the letter.

The letter explains that the company "intends to enter into an assignment for the benefit of creditors." This arrangement would allow for all of Theranos' assets, other than its intellectual property, to be assigned to a third party in trust for the company's creditors. The company says it has about $5 million remaining in cash.

Previously: Theranos Introduces New Product to Distract from Scandal
Theranos Lays Off 340, Closes Labs and "Wellness Centers"
Theranos Given Indirect Lifeline From Softbank
Blood Unicorn Fairy Tale: Theranos Founder Charged With Fraud
Elizabeth Holmes Steps Down as Theranos CEO as DoJ Levels Charges


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  • (Score: 5, Insightful) by MichaelDavidCrawford on Thursday September 06 2018, @09:58AM (8 children)

    by MichaelDavidCrawford (2339) Subscriber Badge <mdcrawford@gmail.com> on Thursday September 06 2018, @09:58AM (#731225) Homepage Journal

    You say that like it's a bad thing.

    --
    Yes I Have No Bananas. [gofundme.com]
    • (Score: 2) by takyon on Thursday September 06 2018, @10:01AM (7 children)

      by takyon (881) <takyonNO@SPAMsoylentnews.org> on Thursday September 06 2018, @10:01AM (#731226) Journal

      Did they get their blood-soaked parachute in time?

      --
      [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
      • (Score: 1, Troll) by VLM on Thursday September 06 2018, @11:51AM (5 children)

        by VLM (445) on Thursday September 06 2018, @11:51AM (#731254)

        They got a lot of fawning PR for having a woman in charge. Well, this is what that leads to...

        • (Score: 3, Funny) by takyon on Thursday September 06 2018, @12:18PM

          by takyon (881) <takyonNO@SPAMsoylentnews.org> on Thursday September 06 2018, @12:18PM (#731258) Journal

          It wasn't merely a woman. It was a woman who had raided Steve Jobs's wardrobe [businessinsider.com].

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        • (Score: 3, Insightful) by DannyB on Thursday September 06 2018, @01:39PM

          by DannyB (5839) Subscriber Badge on Thursday September 06 2018, @01:39PM (#731296) Journal

          Did she say . . .

          I'm melting! melting! Oh, what a world! What a world! Who would have thought a good little girl like you could destroy my beautiful wickedness?

          --
          To transfer files: right-click on file, pick Copy. Unplug mouse, plug mouse into other computer. Right-click, paste.
        • (Score: 2) by bob_super on Thursday September 06 2018, @09:56PM (2 children)

          by bob_super (1357) on Thursday September 06 2018, @09:56PM (#731526)

          Are we dissolving England next ?

          • (Score: 2) by VLM on Friday September 07 2018, @11:29AM (1 child)

            by VLM (445) on Friday September 07 2018, @11:29AM (#731710)

            Hasn't it already been taken over and turned into the Islamic Republic of Airstrip One?

            • (Score: 2) by bob_super on Friday September 07 2018, @04:56PM

              by bob_super (1357) on Friday September 07 2018, @04:56PM (#731839)

              Not quite : still officially a kingdom, for another 20 years until the lady thinks her son is ready to pass it up and let the popular grandson take her place.

      • (Score: 2) by RS3 on Friday September 07 2018, @02:46AM

        by RS3 (6367) on Friday September 07 2018, @02:46AM (#731613)

        Did they get their blood-soaked parachute in time?

        They're not sure yet- still trying to get the test to work.

  • (Score: 3, Interesting) by Alfred on Thursday September 06 2018, @01:05PM (11 children)

    by Alfred (4006) on Thursday September 06 2018, @01:05PM (#731276) Journal
    This ongoing story has had so much inordinately strange coverage that I can't help but think wonder if she is innocent. Tech startups come and go but who cares? Maybe she was set up. Or railroaded. Or intentionally given bad info on the tech. She wants to be actively involved in the product and won't give up so she sees the potential. Maybe the tech is sound and an outside force arranged for internal sabotage so they could pick up the patents later. Maybe she overpromised to another CEO and they bet their career on it and then got upset and came at her with a vengance. journalists are not so good at their jobs that they report truth, they report the first thing they find, which is often not the truth but that gets them a check and the public get the report that is exactly what someone want you to believe about her.

    It might come down to she didn't give a bilderburger (or whatever superclass money infused villian you chose) the BJ he demanded.

    Whatever it is she got way more attention than she deserves and way more bad press than any bad CEO normally gets which stands out as an outlier so i trust the narrative even less.
    • (Score: 0) by Anonymous Coward on Thursday September 06 2018, @01:26PM (5 children)

      by Anonymous Coward on Thursday September 06 2018, @01:26PM (#731284)

      "way more bad press than any bad CEO normally gets"

      Yes, but this doesn't seem like your usual story of CEO incompetence in doing good stuff.
      More like impressive competence in doing evil stuff.

      If that is proven true, then the bad press will be much deserved along with the free room, board, and orange clothes.

      • (Score: 2) by Alfred on Thursday September 06 2018, @01:47PM (4 children)

        by Alfred (4006) on Thursday September 06 2018, @01:47PM (#731300) Journal
        If proven true then yes string her up.

        But the people out to get her will fabricate whatever truth they need to get their way.

        She has not actually hurt anyone, just their pocketbooks. This isn't "love canal" bad where there are actual physical damages. But in the comparison of toxic waste for kids compared to hurting a rich mans ledger, the later will be punished harder.
        • (Score: 3, Interesting) by All Your Lawn Are Belong To Us on Thursday September 06 2018, @02:53PM

          by All Your Lawn Are Belong To Us (6553) on Thursday September 06 2018, @02:53PM (#731330) Journal

          Actually, CMS found that Theranos' testing for Warfarin levels, along with many others, were incorrect. Just because there just aren't any confirmed reports of patient damage occurring yet because of it doesn't mean that there wasn't harm done.

          The Wikipedia article stated, " In February 2016, Theranos announced that it would permit the Cleveland Clinic to complete a validation study of its technology.[63] In March, 2016, the Journal of Clinical Investigation found that the company's blood test results were flagged "outside their normal range 1.6x more often than other testing services", that 68% of lab measurements evaluated "showed significant interservice (sic) variability", and that "lipid panel test results between Theranos and other clinical services" were "nonequivalent""

          Holmes and Balwani have been indicted for fraud because it is alleged they knew full well that the tests they were hyping didn't live up to their hype. When patient care decisions are based on that data there is certainly damage potential, let alone investors who bought into what they were saying because they were saying it and now have lost their investment because they allegedly lied.

          --
          This sig for rent.
        • (Score: 0) by Anonymous Coward on Thursday September 06 2018, @03:41PM

          by Anonymous Coward on Thursday September 06 2018, @03:41PM (#731348)

          She has not actually hurt anyone, just their pocketbooks.

          Just like Bernie Madoff

        • (Score: 2) by NotSanguine on Thursday September 06 2018, @09:05PM

          by NotSanguine (285) <{NotSanguine} {at} {SoylentNews.Org}> on Thursday September 06 2018, @09:05PM (#731505) Homepage Journal

          But the people out to get her will fabricate whatever truth they need to get their way.

          Which people? Names please. I've read several articles (some fawning, some not) about Elizabeth Holmes. Apparently, she modeled herself as a startup entrepreneur and took the time (as a 20 year old) to find some rich older guy to fuck and fund her startups.

          From a technical standpoint, she was in way too deep and really had no vision other than to sell her company. The problem was that the developed products didn't actually work [businessinsider.com].

          What's more, apparently Holmes hid this from investors and customers. It's not clear if anyone died because of her deception, but there is ample evidence that she lied about the efficacy of her products and . Repeatedly. [sciencemag.org] To actual and potential investors, regulators and actual and potential customers.

          The cock she was (not) sucking had nothing to do with bringing her down. If you have *evidence* showing something different, I'd love to see it. I won't hold my breath.

          --
          No, no, you're not thinking; you're just being logical. --Niels Bohr
        • (Score: 2) by bob_super on Thursday September 06 2018, @09:58PM

          by bob_super (1357) on Thursday September 06 2018, @09:58PM (#731528)

          > She has not actually hurt anyone

          Yes, because people get blood tests just for kicks, so getting inaccurate results is inconsequential !
          Moron !

    • (Score: 5, Informative) by takyon on Thursday September 06 2018, @01:28PM (1 child)

      by takyon (881) <takyonNO@SPAMsoylentnews.org> on Thursday September 06 2018, @01:28PM (#731286) Journal

      https://en.wikipedia.org/wiki/Theranos [wikipedia.org]

      The Theranos story combines a hyped up founder who became a billionaire (on paper), an absurd "unicorn" $10 billion valuation, a whistleblower, and outright fraud. It's not your normal tech startup story.

      journalists are not so good at their jobs that they report truth, they report the first thing they find

      That may be responsible for the founder and company being hyped up in the first place, although parts of the company were actively engaged in fraud against journalists AND individual investors. But we're long past that point and there have been federal indictments.

      What your confusion comes down to is ignorance.

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      [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
      • (Score: 0) by Anonymous Coward on Friday September 07 2018, @12:03AM

        by Anonymous Coward on Friday September 07 2018, @12:03AM (#731573)

        It's not your normal tech startup story.

        Alas, nowadays it is.

    • (Score: 0) by Anonymous Coward on Thursday September 06 2018, @01:34PM (1 child)

      by Anonymous Coward on Thursday September 06 2018, @01:34PM (#731289)

      It could also be that they attempted to scam the wrong people. Same mistake that Bernie Madoff made.

      It might come down to she didn't give a bilderburger (or whatever superclass money infused villian you chose) the BJ he demanded.

      The problem with this theory is that she should then be jumping on the #metoo bandwagon. If she truly was victimized for no other reason than she was assigned the female gender at birth, there is no time like the present to name and shame.

      The major problem with this kind of feminist interpretation in general is that the accusation never happens in a timely manner after the act. I think we can give a pass when the #metoo bandwagon comes through town. But this is a larger problem that even #metoo suffers from. If it comes out 20 years from now when she's on her deathbed that it was the case that she was not willing to give a sexual favor to some all-men guy....

      William Wallace: I am William Wallace. And I see a whole army of my countrymen, here in defiance of tyranny! You have come to fight as free men. And free men you are! What will you do without freedom? Will you fight?!

      Young Soldier: No, we will run and live!

      William Wallace: Yes!, Fight and you may die. Run and you will live at least awhile. And dying in your bed many years from now, would you be willing to trade all the days from this day to that for one chance, just one chance, to come back here as young men and tell our enemies that they may take our lives but they will never take our freedom!!!

      s/men/women/g and there you go

      • (Score: 2) by Alfred on Thursday September 06 2018, @01:56PM

        by Alfred (4006) on Thursday September 06 2018, @01:56PM (#731306) Journal
        #metoo is useless against that level of rich. #metoo is leveraged to tactically shoot down certain people of interest. If you have revenge to get and you have money you too can buy a #metoo based character assassination.

        If #metoo had integrity all of Hollywood would be shut down (well all of the male part, which is most of it).
    • (Score: 2) by All Your Lawn Are Belong To Us on Thursday September 06 2018, @02:57PM

      by All Your Lawn Are Belong To Us (6553) on Thursday September 06 2018, @02:57PM (#731332) Journal

      Yes but it was Holmes who was making extraordinary claims. Then she couldn't supply extraordinary proof. Then she couldn't supply plain old proof.

      It may be she was a young girl who thought she had The Next Big Thing but then when the Thing didn't materialize she didn't dial back her rhetoric but instead doubled down on it. They likely could have taken a hit and became a regular labs provider with a heavy R&D department - maybe even get a seat at the big boys table.

      I suppose we'll have some inkling when the their fraud trials are over.

      --
      This sig for rent.
  • (Score: 5, Informative) by takyon on Thursday September 06 2018, @01:29PM (7 children)

    by takyon (881) <takyonNO@SPAMsoylentnews.org> on Thursday September 06 2018, @01:29PM (#731287) Journal

    https://en.wikipedia.org/wiki/Theranos#Bad_Blood [wikipedia.org]

    Wall Street Journal investigative reporter John Carreyrou was responsible for uncovering and exposing "that the company was, in effect, a sham". For this he received the 67th annual George Polk Awards for Financial Reporting (2015). He published a book-length treatment in May 2018 titled Bad Blood: Secrets and Lies in a Silicon Valley Startup. A film version is in the works starring Jennifer Lawrence as Elizabeth Holmes, written by Vanessa Taylor and directed by Adam McKay.

    Jennifer Lawrence in a turtleneck.

    --
    [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
    • (Score: 4, Insightful) by zocalo on Thursday September 06 2018, @01:37PM (5 children)

      by zocalo (302) on Thursday September 06 2018, @01:37PM (#731292)

      Jennifer Lawrence in a turtleneck.

      A nice mental image to be sure, but you're going to have to do much better to beat Natalie Portman in hot grits.

      --
      UNIX? They're not even circumcised! Savages!
      • (Score: 2) by takyon on Thursday September 06 2018, @02:33PM (2 children)

        by takyon (881) <takyonNO@SPAMsoylentnews.org> on Thursday September 06 2018, @02:33PM (#731322) Journal

        If they add dream sequences, they could have Jennifer Lawrence in a black turtleneck sinking into a pool of blood.

        --
        [SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
        • (Score: 0) by Anonymous Coward on Thursday September 06 2018, @04:32PM

          by Anonymous Coward on Thursday September 06 2018, @04:32PM (#731381)

          if there are dream sequences, I think we can just skip the theranos chick and just get straight to the hot grits.

        • (Score: 3, Insightful) by krishnoid on Thursday September 06 2018, @09:10PM

          by krishnoid (1156) on Thursday September 06 2018, @09:10PM (#731507)

          Ladies and gentlemen, start up your deepfakes engines! Finally, a proper use for them.

      • (Score: 0) by Anonymous Coward on Thursday September 06 2018, @02:42PM (1 child)

        by Anonymous Coward on Thursday September 06 2018, @02:42PM (#731327)

        Hi people. Jennifer Lawrence just poured a turtleneck down my naked and petrified pants.

        • (Score: 0) by Anonymous Coward on Thursday September 06 2018, @03:19PM

          by Anonymous Coward on Thursday September 06 2018, @03:19PM (#731344)

          If you keep repeating the old memes, you are in SERIOUS danger of summoning the ghost of goat.se
          DECIST IMMEDIATELY!

    • (Score: 2) by bob_super on Thursday September 06 2018, @10:01PM

      by bob_super (1357) on Thursday September 06 2018, @10:01PM (#731530)

      Jennifer Lawrence without ... turtleneck, was worth watching.

  • (Score: -1, Offtopic) by Anonymous Coward on Thursday September 06 2018, @03:21PM (1 child)

    by Anonymous Coward on Thursday September 06 2018, @03:21PM (#731346)

    Nomsg

    • (Score: -1, Offtopic) by Anonymous Coward on Thursday September 06 2018, @06:53PM

      by Anonymous Coward on Thursday September 06 2018, @06:53PM (#731460)

      -takyon

      PGP key: 808080808urmomgay

  • (Score: 3, Informative) by Beryllium Sphere (r) on Friday September 07 2018, @04:20AM

    by Beryllium Sphere (r) (5062) on Friday September 07 2018, @04:20AM (#731639)

    For a scary look at how many frauds happen in the Valley and how much the establishment tolerates them, see Erin Griffith's article in Fortune.
    http://fortune.com/silicon-valley-startups-fraud-venture-capital/ [fortune.com]

  • (Score: 2) by ilsa on Friday September 07 2018, @05:19PM

    by ilsa (6082) Subscriber Badge on Friday September 07 2018, @05:19PM (#731844)

    Unless the executives are slapped with criminal charges and prevented from going into business again, this means nothing. All dissolving the business does is hurt the investors and the employees. The executives are free to go and spin up another business and keep being frauds.

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