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Theranos Inc., the blood-testing company accused of perpetrating Silicon Valley’s biggest fraud, will soon cease to exist. In the wake of a high-profile scandal, the company will formally dissolve, according to a shareholder email. Theranos will seek to pay unsecured creditors its remaining cash in coming months, the letter said. 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.

Federal prosecutors indicted Elizabeth Holmes on criminal fraud charges for allegedly defrauding investors, doctors and the public as the head of the once-heralded blood-testing startup Theranos. Federal prosecutors also brought charges against the company's former second-in-command. Holmes, who was once considered a wunderkind of Silicon Valley, and her former Chief Operating Officer Ramesh Balwani, are charged with two counts conspiracy to commit wire fraud and nine counts of wire fraud each, the U.S. Attorney's Office for the Northern District of California said late Friday. If convicted, they could face prison sentences that would keep them behind bars for the rest...

Few scandals have so gripped both the health-care and technology industries as the seismic rise and fall of blood-testing company Theranos. In Bad Blood, acclaimed investigative journalist John Carreyrou, who broke the story in 2015, presents comprehensive evidence of the fraud perpetrated by Theranos chief executive Elizabeth Holmes. Specifically, Holmes and the company’s former president Ramesh ‘Sunny’ Balwani raised more than US$700 million through “elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance”, as the US Securities and Exchange Commission put it in March this year.

Elizabeth Holmes — the Silicon Valley wunderkind whose blood-testing startup Theranos has collapsed in a slew of scandals — has been charged with “massive fraud” by the Securities and Exchange Commission. The SEC on Wednesday accused Theranos CEO Holmes and a top lieutenant of defrauding investors of more than $700 million through false claims about its blood-testing technology. Theranos and 34-year-old Holmes ran “an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance,” according to the SEC. While Theranos had said it was on track to make $100 million by...

Elizabeth Holmes — the Silicon Valley wunderkind whose blood-testing startup Theranos has collapsed in a slew of scandals — has been charged with “massive fraud” by the Securities and Exchange Commission. The SEC on Wednesday accused Theranos CEO Holmes and a top lieutenant of defrauding investors of more than $700 million through false claims about its blood-testing technology. Theranos and 34-year-old Holmes ran “an elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance,” according to the SEC. While Theranos had said it was on track to make $100 million by...

Theranos has come a long way from the days when it was a darling in the biotech industry. The Wall Street Journal's sources have claimed that the blood-testing firm has avoided bankruptcy by securing a $100 million loan from Fortress Investment Group. The move should keep Theranos afloat "through 2018," founder Elizabeth Holmes reportedly said in an email. Naturally, though, there are strings attached -- Fortress wants to see a return on its investment. Holmes reportedly said that Theranos has up its patent library as collateral, and that Fortress gets 4 percent equity. The loan is also subject to "certain...

<p>Theranos, the biotech company started by a 19-year-old Stanford dropout, has another hurdle to cross in its whole "we're totally a legit blood-testing company" campaign. This time, it turns out that tens of thousands of blood tests were voided, making them totally invalid. Whoops!</p>

We haven't really written much about the insane Theranos scandal, though we discussed it on our podcast. The whole story is pretty crazy -- involving a heavily hyped up company that appeared to basically be flat out lying to everyone about what it could do. The company still exists, but barely. The company's founder and CEO, who was plastered across magazine covers and compared frequently to Steve Jobs, has been banned from running a lab for two years, and the company is now facing a $140 million lawsuit from its biggest partner, Walgreens, who claims that Theranos repeatedly lied to...

Litigator David Boies and the law firm he founded, Boies, Schiller & Flexner LLP, have stopped doing legal work for Theranos Inc. after disagreeing about the strategy for handling ongoing government investigations of the blood-testing company, according to people familiar with the matter. Boies, 75, has been one of the country’s best-known litigators since the late 1990s. He became Theranos’s outside counsel after being approached in 2011 by two investors in the Palo Alto, Calif., startup. He fiercely defended Theranos against questions about its technology and operations. Read: ‘Fraud is not a trade secret’: How a 27-year-old blew the whistle...

Litigator David Boies and the law firm he founded, Boies, Schiller & Flexner LLP, have stopped doing legal work for Theranos Inc. after disagreeing about the strategy for handling ongoing government investigations of the blood-testing company, according to people familiar with the matter. Mr. Boies, 75 years old, has been one of the country’s best-known litigators since the late 1990s. He became Theranos’s outside counsel after being approached in 2011 by two investors in the Palo Alto, Calif., startup. He fiercely defended Theranos against questions about its technology and operations. Those efforts included threatening to take legal action against The...

Litigator David Boies and the law firm he founded, Boies, Schiller & Flexner LLP, have stopped doing legal work for Theranos Inc. after disagreeing about the strategy for handling ongoing government investigations of the blood-testing company, according to people familiar with the matter. Mr. Boies, 75 years old, has been one of the country’s best-known litigators since the late 1990s. He became Theranos’s outside counsel after being approached in 2011 by two investors in the Palo Alto, Calif., startup. He fiercely defended Theranos against questions about its technology and operations. Those efforts included threatening to take legal action against The...

It's worth asking why Elizabeth Holmes is still leading the embattled blood testing company Theranos Inc. But there may be a good reason why she still is in charge, one that has little to do with the scandal-ridden company's performance to date. Forget what venture capitalist Tim Draper — one of the first to invest in the Palo Alto company — implied this week that Holmes is being attacked because she's a young, female entrepreneur. The simple fact is that Theranos has not been able to deliver on its technology from a commercial, scientific or regulatory standpoint, and that falls...

2016 has not been too kind to Elizabeth Holmes, the Steve-Jobs wannabe in charge of fraudulent Theranos. She has thus far been banned for 2 years from operating labs, removed from hosting fundraisers for Hillary and lost her entire net worth. And now, the Wall Street Journal has published the "tell-all" story of the whistle-blower, 26 year old Tyler Shultz, who brought the the whole Theranos farce crashing down. It's a sordid tale complete with all the expected twists and turns of a Jason Bourne thriller including intimidation, coercion and private detectives. Tyler Shultz is the grandson of George Shultz,...

After working at Theranos Inc. for eight months, Tyler Shultz decided he had seen enough. On April 11, 2014, he emailed company founder Elizabeth Holmes to complain that Theranos had doctored research and ignored failed quality-control checks. The reply was withering. Ms. Holmes forwarded the email to Theranos President Sunny Balwani, who belittled Mr. Shultz’s grasp of basic mathematics and his knowledge of laboratory science, and then took a swipe at his relationship with George Shultz, the former secretary of state and a Theranos director. “The only reason I have taken so much time away from work to address this...

Embattled Theranos CEO Elizabeth Holmes is a victim who has been "totally attacked," venture capitalist Tim Draper told CNBC on Tuesday. Holmes has been under fire since a series of reports by The Wall Street Journal suggested the blood-testing start-up's testing devices were flawed. "Elizabeth Holmes is a great example of maybe why the women are so frustrated. She is a woman entrepreneur who built a fabulous company, did great things for consumers and she got attacked," the founding partner of Draper Associates and Draper Fisher Jurvetson said in an interview with "Closing Bell." "This is a great entrepreneur who...

Theranos Inc. allegedly voided 11.3% of all blood-test reports that the Silicon Valley laboratory firm provided to customers of Walgreens stores through a yearslong partnership between the two companies, according to legal papers the drugstore chain filed Tuesday. Theranos, whose main lab failed an inspection by U.S. regulators earlier this year, told Walgreens in June that it subsequently voided 31,000 test reports provided to the chain’s customers, Walgreens said in the public version of a sealed lawsuit.

SAN FRANCISCO – Walgreens has filed a $140 million breach of contract suit against Theranos Inc., compounding the woes of the Silicon Valley-based medical device startup. The suit was filed under seal in Delaware federal court on Tuesday. It's not clear what exactly the Illinois-headquartered pharmacy chain is alleging, but the docket describes the case as a breach of contract suit with a demand of $140 million.

SAN FRANCISCO — Embattled biotech startup Theranos Inc. has promoted senior litigation counsel David Taylor to acting general counsel. Taylor's already got a full plate. "He's got a mess on his hands," said Hagens Berman Sobol Shapiro partner Robert Carey in Phoenix, one of many lawyers suing the blood diagnostics company for alleged consumer fraud. Carey's suit is one of six similar, separate suits consolidated in the Northern District of California. Aside from that litigation surplus, Theranos is being investigated for investor and consumer fraud by the U.S. Securities and Exchange Commission and the U.S. Department of Justice, respectively. The...

Hillary Clinton’s presidential campaign brushed off a high-profile supporter’s warnings against doing campaign events with a Silicon Valley CEO whose company has since imploded under the weight of layoffs, a federal criminal investigation, and rebukes from top regulators. Campaign staff circulated an internal schedule of fundraising events in March that included a “Conversation with Chelsea” event at the Palo Alto offices of biotech startup Theranos that featured the company’s chief executive Elizabeth Holmes.

IT ALL began with the best, if exceedingly ambitious, of intentions – to develop a machine that by a simple pinprick on a patient’s finger could detect any disease known to man. But it ended in the most tragic of circumstances, with the firm behind the invention crashing and a British scientist who had devoted himself to the project taking his own life. Now his widow has spoken out about the treatment he suffered before and after his death at the age of 67, accusing his employers of heartlessness.