Blood-testing firm Theranos to dissolve

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Blood-testing firm Theranos to dissolve

Mr Taylor said Theranos had run "out of time" to secure further investment or secure a buyer for its assets.

The most damaging revelation in the article was that the nanotainers themselves were so flawed that Theranos had been using equipment made by other companies to carry out blood tests in its laboratories.

Theranos is shutting down, The Wall Street Journal said on Tuesday night, citing a shareholder email.

The move comes after federal prosecutors filed criminal charges against Theranos founder Elizabeth Holmes and the blood-testing company's former No. 2 executive, alleging that they defrauded investors out of hundreds of millions of dollars and defrauded doctors and patients.

Holmes and Balwani both pleaded not guilty at their arraignment.

The company will be liquidated over the next six to 12 months, and plans to dole out its estimated $5 million in remaining cash to its unsecured creditors, according to the email sent out by Theranos General Counsel and CEO David Taylor. As the former CEO Elizabeth Holmes is facing fraud charges, the company has been mired in a myriad of scandals. "We are now out of time", he wrote.

"For example, allegedly, Holmes and Balwani knew that the analyzer, in truth, had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines". Theranos was founded in 2003 by Holmes when she was only 19.

The SEC also alleged that claims the company would generate more than $100 million in revenue in 2014 were false, as it generated a little more than $100,000.

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. All told, investors in Theranos have lost almost $1 billion.

The Wall Street Journal began investigating and published a series of exposes starting from October 2015.

In March, Ms Holmes settled charges with the Securities and Exchange Commission, a top U.S. financial regulator.

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