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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: 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.

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