SoylentNews is people
SoylentNews
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 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.