Blood-Testing Company Theranos to Dissolve After Fraud Scandal

The blood-testing company Theranos, once a rising star in Silicon Valley, will formally dissolve and pay unsecured creditors its remaining cash in the next few months, The Wall Street Journal reports. The announcement reportedly came in a shareholder email sent out Tuesday, weeks after the company’s former CEO and president were charged with “massive fraud” for allegedly duping investors out of hundreds of millions of dollars. Elizabeth Holmes, the former CEO and founder, was accused along with former President Ramesh Balwani of lying about the firm’s technological capabilities, as well as its financial status and connections to the Department of Defense. The company was also accused of giving health-care providers and patients “materially false and misleading information concerning the accuracy and reliability of Theranos’ blood-testing services.”