Theranos, the Silicon Valley-based blood-testing startup that was once valued at $9 billion, is dissolving. The company has been clad in scandal after reports revealed Theranos’ trademark service–to test blood with a single pinprick–wasn’t effective or accurate.
Its founder, Elizabeth Holmes, once heralded as the next Steve Jobs by Inc. Magazine, and Sunny Balwani, Theranos’s former president and COO, are facing criminal charges for defrauding investors out of hundreds of millions of dollars.
The Washington Post first reported the story on the company’s closure, which was detailed in a note to shareholders issued Monday by CEO and General Counsel David Taylor. Theranos will pay its creditors after turning over its assets and intellectual property to Fortress, a credit and investment firm.
The move will leave Theranos with $5 million to pay creditors. It owes more than $60 million.
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Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."