Scandal-Ridden Theranos To Formally Dissolve Following Failed Bid To Sell The Blood-Testing Company
The big-name investors who poured money into Theranos will get nothing. All told, investors in Theranos have lost nearly $1 billion.
The Wall Street Journal:
Blood-Testing Firm Theranos To Dissolve
Theranos Inc., the blood-testing company accused of perpetrating Silicon Valley’s biggest fraud, will soon cease to exist. In the wake of a high-profile scandal, the company will formally dissolve, according to an email to shareholders. Theranos will seek to pay unsecured creditors its remaining cash in coming months, the email said. The move comes after federal prosecutors filed criminal charges against Theranos founder Elizabeth Holmes and the blood-testing company’s former No. 2 executive, alleging that they defrauded investors out of hundreds of millions of dollars and defrauded doctors and patients. (Carreyrou, 9/5)
The Hill:
Theranos To Formally Dissolve In Wake Of Scandal
Elizabeth Holmes, founder of the embattled blood-testing company, was charged with fraud alongside Ramesh “Sunny” Balwani, the former chief operating officer of Theranos. Holmes and Balwani are also accused of lying to investors about the company's technological abilities. (Anapol, 9/4)
USA Today:
Theranos Blood-Testing Company To Dissolve, Pay Creditors
Theranos, which owes at least $60 million to unsecured creditors, will turn over its assets and intellectual property to credit and investment firm Fortress, says the e-mailed letter, first reported by The Wall Street Journal. This move, rather than a bankruptcy, will leave $5 million to distribute to creditors, it says. The action is the final act in Theranos' dramatic downfall. Founded in 2003 by then teen-age Stanford dropout Elizabeth Holmes, Theranos grew into a $9 billion firm based on its promise of a blood test requiring only a finger prick, rather than a vial of blood. (Snider, 9/5)
Financial Times:
Blood-Testing Group Theranos To Dissolve Following Fraud Scandal
Ms Holmes sold that vision to a roster of well known investors, including Walgreens, the drugstore group, media mogul Rupert Murdoch, and Oracle co-founder Larry Ellison. Theranos raised $700M, giving it valuation of roughly $9B at its zenith. She also assembled a board of directors that included the elite of political and corporate America, including Jim Mattis, the current US defence secretary, two former secretaries of state — Henry Kissinger and George Shultz — and David Boies, the high-profile lawyer. (Crow, 9/5)
