It would have been a real surprise to hear about the fact that the startup in blood testing, Theranos was technically still carrying out their operations, though it was nothing but an organization that dealt in fraudulent activities, which had put a lot of people in serious trouble.
Now, with the email from their Chief Executive, David Taylor to the company’s shareholders officially goes to show that Theranos is finally shutting down.
David Taylor started off his email by saying that he is writing the email with the difficult news about the future of their organization, though it was tough to believe that the shareholders were already not aware of the development that had taken place. Taylor, who also happens to be the general counsel, had become the CEO after the former CEO and founder, Elizabeth Holmes had got indicted for dealing in fraudulent activities by the prosecutors of the federal agency. So, when the founder of the organization is faced with criminal charges and the potential of spending 20 years in prison, this drastic step should be on the expected lines.
Theranos will formally dissolve and hence they would make a cash payment to their creditors. Most of the employees had already been through with their final day. The organization had even intended to sell them but no one was interested in buying such a company, which has been nothing less than a disgrace, where the company had made the investors suffer a loss of close to $1 billion. On the technical front, the final nail in the coffin was when Theranos had breached a contract in relation to a loan with Fortress Investment Group.
Problems had begun for Theranos a long time back but still, there was a time when it used to be a darling of the Silicon Valley as well as biotech, purely a unicorn that was worth $9 billion. They had come up with the promise of delivering totally painless, accurate and unique method of blood testing.
Unfortunately, when every detail was scrutinized by The Wall Street Journal, each and everything had fallen apart. When their technology did not work out, they had tried to inflict their failed technology on some major companies like Walgreens.