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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
(Score: 3, Interesting) by Alfred on Thursday September 06 2018, @01:05PM (11 children)
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)
"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)
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
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
Just like Bernie Madoff
(Score: 2) by NotSanguine on Thursday September 06 2018, @09:05PM
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
> 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)
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.
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.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday September 07 2018, @12:03AM
Alas, nowadays it is.
(Score: 0) by Anonymous Coward on Thursday September 06 2018, @01:34PM (1 child)
It could also be that they attempted to scam the wrong people. Same mistake that Bernie Madoff made.
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....
(Score: 2) by Alfred on Thursday September 06 2018, @01:56PM
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
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.