Health Care

Theranos bleeds dry, company to dissolve

Theranos bleeds dry, company to dissolve”

As NPR's James Doubek reported in March, Holmes has already settled civil charges brought by the Securities and Exchange Commission, agreeing to pay a $500,000 penalty and to refrain from serving as a director or officer of a publicly traded company for 10 years.

"Unfortunately, none of those leads has materialized into a transaction".

The unraveling of Theranos came after reports alleged it was not using its own technology in numerous blood tests it performed.

That was until a 2015 Wall Street Journal story, when the first cracks in the story started to appear. All told, investors in Theranos have lost almost $1 billion.

Theranos acting chief and general counsel David Taylor emailed investors to explain that the company has to shut its doors because of a deal with Fortress Investment Group. By 2014, she had raised $700 million from venture capitalists and private investors - including current U.S. secretary of education Betsy DeVos, the family of Walmart founder Sam Walton, Rupert Murdoch, and Mexican billionaire Carlos Slim.

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.

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.

Elizabeth Holmes suckered in former US President Barack Obama, his Vice President Joe Biden and other top Democrats and Republicans.

Theranos attracted more than $700m worth of backing from a glittering line-up of investors and recruited some of America's most powerful statesmen, including former secretaries of state Henry Kissinger and George Shultz and the current defence secretary James Mattis, to its board.

On a recent podcast he spoke of how she was able to seduce powerful men to keep the charade going.

"She wowed them. I don't necessarily think that it was a sexual thing by any means ..."

Perhaps the most incredible thing about her downfall, is her denial of it.

An experience that marked her childhood and that would change her life forever, was when an uncle who she loved very much was diagnosed with skin cancer.

The news comes as Theranos founder Elizabeth Holmes and her second-in-command face criminal charges on accusations that they defrauded investors, doctors, and patients. As part of the settlement, Holmes and Theranos did not admit or deny the allegations.



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