Theranos Is Reportedly Closing After Failing To Sell Itself

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It will formally disband in the coming months, according to an email to shareholders obtained by The Wall Street Journal.

Friday, Aug 31. was the last day of work for Theranos' remaining two-dozen employees and overall, investors have lost about $1 billion, the WSJ reported.

The train wreck finally came to a climax in March of this year when the SEC charged the company, Holmes, and former President Ramesh Balwani with raising more than $700 million from investors through an "elaborate, years-long fraud in which they exaggerated or made false statements about the company's technology, business, and financial performance".

A blood-testing company that was once the toast of Silicon Valley will soon shut down.

Ms Holmes raised over $700m in funding for Theranos, but when she tried to pitch the technology to the US Department of Defense in 2012, her pitch was rejected due to the devices' unpredictable results. Former CEO Elizabeth Holmes' black turtleneck and lofty goals drew comparisons with Apple's Steve Jobs.

The Wall Street Journal began investigating and published a series of exposes starting from October 2015.

Prosecutors allege Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood-testing technologies going back to at least 2013. At one time, Holmes was the youngest self-made female billionaire.

The Journal's investigation marked the beginning of the end of Theranos.

Holmes had claimed that the company's technology could run comprehensive lab tests using just a few drops of blood - a pitch that appealed to Walgreens, which partnered with Theranos to offer the blood tests in its stores.

In July 2016, the Centers for Medicare and Medicaid Services (CMS) revoked Theranos' CLIA license and prohibited Holmes from owning and operating a laboratory for two years. John Carreyrou, the journalist who helped take the company down with a series of explosive articles, told Vanity Fair in June that Holmes had "sociopathic tendencies" and viewed herself as the victim of incompetent staff and attack-dog journalists.

Fortress gave the embattled Silicon Valley company a loan in 2017, helping Theranos avoid bankruptcy.

Following a series of exposes from WSJ, the credibility of Theranos was questioned by investors, federal agencies and medical authorities.

Despite the fact the disgraced former CEO, now 34, has already paid half a million dollars in fines to the Securities and Exchange Commission and is facing the prospect of serious jail time, Theranos hadn't given up hope of saving itself - until now.

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