The Wall Street Journal is reporting that the blood-testing company is about to wind itself up after failing to find a buyer.
Theranos will attempt to pay unsecured creditors its remaining cash in the coming months, WSJ reports, adding that big name investors had lost about $1B.
Enjoying this story? Subscribe to FierceBiotech! Holmes, who did not admit wrongdoing, was fined $500,000 and ordered to relinquish 18.9 million shares in the company. "Despite our careful cash management, we are in default under the Fortress credit facility", Taylor wrote.
Investors who gave the company $100 million or more included the heirs to Walmart Inc. founder Sam Walton; Atlanta's Cox family; the family of Education Secretary Betsy DeVos; and Rupert Murdoch, executive chairman of 21st Century Fox and of News Corp., the The Wall Street Journal's parent company, the newspaper reported Wednesday.
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The SEC charged Holmes and former President Ramesh "Sunny" Balwani with deceiving investors into believing the portable blood analyzer could conduct comprehensive blood tests from drops of blood.
The dissolution process was precipitated by the fact that Theranos breached a covenant governing a $65 million loan it received from Fortress Investment Group past year.
The last working day was the 31st of August and the present CEO David Taylor and other supporting staffs shall be at the office for a few more days until the company completely dissolves. According to the charges from the U.S. Attorney in San Francisco, Balwani and Holmes lied to investors about their technology while they raised $700 million for the startup. In 2015, Forbes declared Holmes to be the world's youngest self-made female billionaire - with a personal net worth of $4.5 billion.
Theranos, which purported to have invented a line of blood-testing machines capable of running complicated tests on just a single finger prick of blood, was in reality a fraud on a staggering scale.
In March, US securities regulators accused the youthful entrepreneur of an "elaborate, years-long fraud".
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. Theranos didn't respond for a request to comment outside regular business hours. In exchange, Fortress would get Theranos's patents.