Theranos is about to shut down for good


Theranos operations formally ceased on 31 August 2018, with Taylor and a few support staff lingering on the payroll for several days after.

David Taylor, the Theranos general counsel who took over as CEO after the disgraced Elizabeth Holmes finally resigned in June, wrote to the company's stockholders to say all efforts to sell the operation had failed.

Investors poured almost $1 billion into Theranos and three former USA cabinet secretaries, two former United States senators, a retired admiral and a retired Marine Corps general joined its board.

In March, Holmes reached a settlement with the Securities and Exchange Commission related to its fraud charges, which further damaged Theranos and helped lead to its demise.

Theranos founder Elizabeth Holmes and former president Ramesh Balwani are facing criminal charges of wire fraud.

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That was until a 2015 Wall Street Journal story, when the first cracks in the story started to appear. They could spend up to 20 years in prison if convicted, and would also face fines of $250,000 plus restitution. The blood-testing company is seeking to keep part of its remaining assets to pay off investors.

She carefully crafted her image as well, wearing nearly entirely black turtleneck sweaters that earned her the moniker in Silicon Valley as "the next Steve Jobs".

On the strength of her claims, Theranos rolled out its vaunted finger-stick blood tests in Walgreens stores in California and Arizona and rocketed to a valuation of more than $9 billion, making Ms. Holmes a billionaire and media celebrity. Behind the scenes, it performed the vast majority of the tests with commercial analyzers purchased from other companies.

The current liquidation process could mean it takes 6 to 12 months for creditors to receive Theranos' remaining cash. Its hope was to save people from painful, drawn out and invasive medical procedures, as well as promising to do it more economically, and with less susceptibility to human error.

For the past year, the company's overall rating - according to anonymous employees posting to workplace review site Glassdoor - has been below average. She eventually convinced her chemical engineering professor to join her, and he gave up his Stanford tenure to join her new company Theranos, which is an amalgam of the words "therapy" and "diagnosis". It has about $5 million left that will be distributed to investors.