Rise and fall of Theranos puts Silicon Valley firmly in focus


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.

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.

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

The announcement comes almost three months after Theranos founder and former CEO Elizabeth Holmes and former Chief Operating Officer Ramesh Balwani were charged with criminal fraud.

In May, it was announced that a movie based on a book by Wall Street Journal writer John Carreyrou was in the works and would star Jennifer Lawrence as Holmes.

In June this year, Holmes and former Theranos president Ramesh "Sunny" Balwani were indicted on charges that they engaged in schemes to defraud investors, doctors and patients.

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The once-heralded blood-testing startup Theranos is shutting down, according to a media report.

Taylor's email to shareholders was also reported by the Financial Times. They have negotiated a deal with Fortress Investment Group, their lender, where Fortress retains what intellectual property Theranos had left.

He said the company was attempting to reach an agreement with Fortress to give it ownership of Theranos's patents but leaving its remaining cash of about $5 million for distribution to other unsecured creditors.

In March, Ms Holmes settled charges with the Securities and Exchange Commission, a top USA financial regulator. "For example, allegedly, Holmes and Balwani knew that the analyzer, in truth, had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines".

Holmes and the company settled the SEC's allegations.