It looks like Theranos is finally shutting down for good following years of troubles.
Theranos is the blood-testing company that promised to provide customers with a revolutionary new way to test blood. However, the claims that it made were false and it was actually using normal blood-testing machines behind the scenes.
When all of this news broke, Theranos started to crumble. Years later it is now finally shutting its doors as its founder and CEO Elizabeth Holmes faces criminal charges. This includes a possible sentence of 20 years in prison and charges of $250,000 on each count against her. Former COO Ramesh Balwani is facing the same charges.
News of Theranos shutting down comes from an email that was sent to investors. The Wall Street Journal, which is responsible for shedding light on the company’s deceitful practices, obtained a copy of this letter.
The letter notes that Theranos is hoping to split up the remaining $5 million in cash that it has on hand to some of its creditors. However, a loan agreement with Fortress Investment Group may keep it from doing so. The company is hoping to settle the agreement with Fortress Investment Group by offering it all of its patents, instead of the cash.
Part of the reason that Theranos was able to rise so quickly in the blood-testing market was due to a relationship with Walgreens (NASDAQ:WBA). However, that partnership ended two years ago after all of the bad practices of the company started to come to light.
As of this writing, William White did not hold a position in any of the aforementioned securities.