Theranos, Elizabeth Holmes' startup, is shutting down for good

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Holmes, who reigned briefly as the world's youngest female self-made billionaire over her promise to revolutionize blood testing, was criminally charged in June with defrauding investors along with the Palo Alto, California-based company's former president, Ramesh "Sunny" Balwani.

However, in October 2015, the Wall Street Journal published a front-page story that claimed the technology was flawed and that the company's former chief scientist had taken his own life two years earlier after telling his wife the technology did not work.

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.

In the wake of a high-profile scandal, the company will formally dissolve, according to a shareholder email.

Prosecutors had said Holmes and Balwani used advertising and solicitations to encourage doctors and patients to use its blood testing laboratory services despite knowing the company could not produce accurate and reliable results consistently.

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As Ars reported previously, in March 2018, the Securities and Exchange Commission filed civil charges against Holmes, Balwani, and Theranos, alleging that they had committed "massive fraud". "We are now out of time", he wrote. They have negotiated a deal with Fortress Investment Group, their lender, where Fortress retains what intellectual property Theranos had left.

Theranos was once valued at $9 billion.

He said the company was attempting to reach an agreement with Fortress to give it ownership of Theranos's patents but leaving its remaining cash of about $5 million for distribution to other unsecured creditors.

The company attracted the attention of U.S. regulators, including the Centers for Medicare and Medicaid Services, which in April a year ago took away the company's clinical laboratory testing certificate. "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".

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