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 [wsj.com] by The Wall Street Journal, which published the letter [wsj.com].
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 [soylentnews.org]
Theranos Lays Off 340, Closes Labs and "Wellness Centers" [soylentnews.org]
Theranos Given Indirect Lifeline From Softbank [soylentnews.org]
Blood Unicorn Fairy Tale: Theranos Founder Charged With Fraud [soylentnews.org]
Elizabeth Holmes Steps Down as Theranos CEO as DoJ Levels Charges [soylentnews.org]