Theranos is about to shut down for good

Theranos is about to shut down for good

The once high flying blood-testing start-up Theranos, accused with cheating investors, will dissolve, the Wall Street Journal reported on Wednesday.

Theranos was founded and helmed by then-19-year-old Stanford dropout Elizabeth Holmes in 2003 promising the development of blood tests requiring only tiny amounts of blood (1/100 - 1/1000 the norm).

Holmes was succeeded as CEO by Taylor in June this year, after the former was indicted with nine counts of wire fraud and two counts of conspiracy to commit wire fraud by a U.S. grand jury.

Mr Taylor, who also serves as general counsel to the firm, said that Theranos had engaged the services of investment bank Jeffries to try to "maximise the value of the company" for shareholders.

In June, an incredibly overconfident Holmes was briefly reported as interested in starting another company, despite the SEC settlement preventing her from serving as an officer of a public firm for a decade.

In June, Holmes appeared in federal court in San Jose to face charges of criminal fraud, and resigned as CEO of Theranos. The company plans to get everything finished as soon as possible, proceeding next Monday with a complete dissolution of the organization.

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But an investigation by The Wall Street Journal two years ago found that Theranos' technology was inaccurate at best, and that the Palo Alto, Calif. -based company was using routine blood-testing equipment for the vast majority of its tests. Former CEO Elizabeth Holmes' black turtleneck and lofty goals drew comparisons with Apple's Steve Jobs. Walgreens ended its relationship with Theranos in 2016.

As for its business outlook rating - how employees believe the company will fare in the next six months - Theranos has been on a slow dive for over a year.

With little choice left, Taylor said they have begun new negotiations with Fortress, under which Fortress would take ownership of Theranos' interests but relinquish its rights to the company's remaining cash.

Theranos is now negotiating with Fortress to keep part of its remaining cash to pay off other investors.

Theranos Chief Executive Officer Elizabeth Holmes speaks on stage at the Glamour Women of the Year Awards where she receives an award, in the Manhattan borough of NY, U.S., November 9, 2015.

Information for this article was contributed by staff members of The Associated Press, by Jeff Sutherland of Bloomberg News and by Reed Ableson of The New York Times.

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