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Embattled blood-testing firm Theranos to dissolve: WSJ

(Reuters) – Embattled blood-testing company Theranos Inc will soon formally dissolve, the Wall Street Journal reported here on Tuesday, citing a shareholder email.

FILE PHOTO: Theranos Chief Executive Officer Elizabeth Holmes speaks on stage at the Glamour Women of the Year Awards where she receives an award, in the Manhattan borough of New York, U.S., November 9, 2015. REUTERS/Carlo Allegri/File Photo

The Silicon Valley firm will attempt to pay unsecured creditors its remaining cash in the coming months, the report said, adding that big name investors had lost about $1 billion.

Theranos founder Elizabeth Holmes and the company’s former president Ramesh “Sunny” Balwani were indicted in June on charges that they engaged in schemes to defraud investors, doctors and patients.

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.

Theranos did not immediately respond to Reuters’ request for comment.

Reporting by Kanishka Singh in Bengaluru; Editing by Sai Sachin Ravikumar

http://feeds.reuters.com/~r/reuters/businessNews/~3/8aVhEfbb5Nk/embattled-blood-testing-firm-theranos-to-dissolve-wsj-idUSKCN1LL077

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