Embattled blood-testing company Theranos will dissolve

Blood-testing firm Theranos to formally dissolve report says

Elizabeth Holmes founder and chief executive of Theranos speaks at the Fortune Global Forum in San Francisco in 2015

Taylor said the company is looking to pay its remaining cash - roughly $5 million - to creditors, which could take about six to 12 months.

The Wall Street Journal, which reported the initial explosive allegations against Theranos, now reports that the firm will dissolve.

"The defendants also represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, the defendants knew Theranos would generate only negligible or modest revenues in 2014 and 2015", the U.S. Attorney's Office said. Theranos claimed its technology was revolutionary and that its tests required only about 1/100 to 1/1,000 of the amount of blood that would ordinarily be needed and cost far less than existing tests.

Theranos founder Elizabeth Holmes, who started the company when she was 19, was celebrated as a rising Silicon Valley star until it became clear that numerous claims about the company's supposedly revolutionary blood test were bogus.

If convicted, they could face prison sentences that would keep them behind bars for the rest of their lives, and total fines of $3.69m each.

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The blood-testing company Theranos, once hailed as a life-saving medical revolution, is to shut down amid claims its executives have conducted years of fraudulent business. 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.

Taylor took over the CEO role from founder Elizabeth Holmes, a Clinton donor and presidential ambassador for global entrepreneurship under former President Barack Obama, after she was charged with "massive fraud". In 2015, Forbes declared Holmes to be the world's youngest self-made female billionaire - with a personal net worth of $4.5 billion. But that unraveled spectacularly under the scrutiny of Wall Street Journal investigative reporter John Carreyrou. The story raised concerns about the accuracy of Theranos' blood testing technology, which put patients at risk of having conditions either misdiagnosed or ignored.

The Journal's investigation marked the beginning of the end of Theranos. Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services in 2016 effectively banned Theranos from doing any blood-testing work.

Theranos's founder and chairman, Ms. Holmes, and her ex-boyfriend, Ramesh "Sunny" Balwani were indicted on nine counts of wire fraud and two counts of conspiracy to commit wire fraud in June. It may take up to a year to have everything settled, but the company's employees worked for the last time on August 31.

Balwani continues to fight the SEC's charges against him. Theranos didn't respond for a request to comment outside regular business hours.

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