Embattled blood-testing firm Theranos to dissolve

Blood-testing startup Theranos is now set to formally dissolve just weeks after its CEO Elizabeth Holmes was charged with criminal fraud for allegedly defrauding investors doctors and the public in a multi-million dollar scheme

Theranos was once valued at $9 billion.

CEO and General Counsel David Taylor spoke of "difficult news" about the California-based company's future to stockholders on Tuesday, in an email acquired by The Wall Street Journal.

The blood-testing company reportedly sent an email to its shareholders, telling them that the company would formally dissolve.

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Theranos founder Elizabeth Holmes was once lauded as the youngest self-made female billionaire. The process of dissolving the company is expected to take six to 12 months. After an investigation in 2015 by the Wall Street Journal into the device's accuracy, Theranos had its clinical laboratory testing certificate revoked and a deal with Walgreens was terminated.

Theranos (THERA) the once-celebrated Silicon Valley blood-testing firm, is about to dissolve itself months after top executives were indicted for defrauding investors. However, it was reported that Theranos conducted on traditional blood-testing machines rather than its own Edison machines because the latter gave inaccurate results.

Theranos was founded in 2003 by Holmes when she was only 19. She and Balwani were slapped with multiple charges of wire fraud and conspiracy to commit wire fraud and are facing up to 20 years in prison. Former CEO Elizabeth Holmes' black turtleneck and lofty goals drew comparisons with Apple's Steve Jobs.

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Prosecutors say they engaged in a multi-million dollar scheme to defraud investors, doctors and patients. This arrangement would allow for all of Theranos' assets, other than its intellectual property, to be assigned to a third party in trust for the company's creditors.

The Journal's investigation marked the beginning of the end of Theranos.

Theranos Inc., the blood-testing company accused of perpetrating Silicon Valley's biggest fraud, will soon cease to exist. Holmes settled with the SEC, agreeing to pay $500,000 in fines and penalties.

According to a report by the WSJ, American business and government leaders had lost more than $600 million by privately investing in Theranos.

There are many outstanding questions surrounding Theranos, not least the outcome of Ms Holmes and Mr Balwani's forthcoming fraud trial, as well as whether the remaining patents being acquired by Fortress will turn out to have any lasting value.

Information for this article was contributed by staff members of The Associated Press, by Jeff Sutherland of Bloomberg News and by Reed Ableson of The New York Times.

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