Theranos, Elizabeth Holmes' startup, is shutting down for good

Holmes who was once considered a wunderkind of Silicon Valley launched Theranos in 2003 in Palo Alto California pitching its technology as a cheaper way to run dozens of blood tests

Blood-testing startup Theranos reportedly to dissolve

The company told shareholders in an email that it will dissolve and pay out the remaining cash to creditors, according to the Journal.

They were all lured by Ms Holmes's claim to have come up with a revolutionary form of blood-testing technology that involved a small prick to a patient's fingertip, collecting just a few drops of blood, rather than using needles and venous draws.

The once-heralded blood-testing startup Theranos is shutting down, according to a report by the newspaper responsible for exposing the company as an elaborate fraud.

The company's dissolution comes months after its top two executives, ex-CEO Elizabeth Holmes, and former president Ramesh "Sunny" Balwani, were federally prosecuted for criminal wire fraud.

But prosecutors allege that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood-testing technologies going back to at least 2013.

It was briefly one of the most celebrated companies in Silicon Valley - but Theranos, a company valued at $9bn (£7bn) at its peak, will soon be no more.




Among the charges with which they have been indicted is claiming to investors that Theranos would enjoy sales of $1bn in 2015 when, in fact, it made just a few hundred thousand dollars.

Holmes, once considered a wunderkind in Silicon Valley, had pitched Theranos' technology as a cheaper way to run dozens of blood tests. But that unraveled spectacularly under the scrutiny of Wall Street Journal investigative reporter John Carreyrou.

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.

Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services effectively banned Theranos in 2016 from doing any blood testing work at all.

As part of the settlement, Ms Holmes had to return millions of shares to the privately held company and pay a $500,000 fine.

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