Theranos, the company that claimed it could test for a variety of medical conditions with a single drop of blood, is officially dissolving. CEO and general counsel David Taylor said in a note to shareholders the dissolution process will begin Monday, Sept. 10, USA Today reports.
Theranos was founded in 2003 by Stanford University dropout Elizabeth Holmes, who was dubbed “the next Steve Jobs.” The company grew to be worth $9 billion but the accuracy of its tests eventually came into question—resulting in a two-year ban from the blood-testing business in 2017, according to USA Today.
In March, Holmes was ordered to pay a $500,000 fine and give up the company after securities regulators said she fraudulently raised more than $700 million from investors. She was also barred from serving as an officer or director of a public company for 10 years.
In the letter to shareholders, Taylor said the dissolution process will leave $5 million to distribute to creditors. Shareholders will get a copy of the certificate of dissolution to use for tax loss purposes.
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Daniel joined TriMed’s Chicago editorial team in 2017 as a Cardiovascular Business writer. He previously worked as a writer for daily newspapers in North Dakota and Indiana.