Blood-testing company Theranos is set to dissolve

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Theranos Inc., the Silicon Valley blood-testing company accused of defrauding investors, will formally dissolve, The Wall Street Journal reported Wednesday. In June, a grand jury indicted Elizabeth Holmes and Ramesh "Sunny" Balwani on almost a dozen wire fraud charges, saying they defrauded investors, doctors and patients.

"We are now out of time", David Taylor, the company's chief executive and general counsel, informed investors in an email first reported Tuesday by The Wall Street Journal.

In March, the Securities and Exchange Commission announced that it had reached a settlement with Holmes over its accusations that she and former Theranos President Ramesh "Sunny" Balwani engaged in "massive fraud" worth $700 million. The company grew at a rapid rate in the following ten years, backed by investors who fell in love with Holmes' idea. If convicted, they each face a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution to those found to have been defrauded, on each count.

Theranos founder Elizabeth Holmes was once lauded as the youngest self-made female billionaire. Instead of the familiar needles, tourniquets, vials, and bandages of the past, Theranos offered a comprehensive blood test that required just a finger stick and a single drop of blood.

In March, Ms Holmes settled charges with the Securities and Exchange Commission, a top U.S. financial regulator. Her bold talk and black turtlenecks drew comparisons to Steve Jobs.

Investors bought what Holmes was selling and invested hundreds of millions of dollars in the company.

It took the better part of a decade for the fraud perpetrated by Theranos to be uncovered, in large part because Holmes was able to cultivate relationships with some of the world's most powerful, influential and wealthy people. In July 2016, the Centers for Medicare and Medicaid Services (CMS) revoked Theranos' CLIA license and prohibited Holmes from owning and operating a laboratory for two years.

Investors lost nearly $1 billion in the company, The Journal reported.

Balwani continues to fight the SEC's charges against him.

Theranos didn't respond for a request to comment outside regular business hours.

There are many outstanding questions surrounding Theranos, not least the outcome of Ms Holmes and Mr Balwani's forthcoming fraud trial, as well as whether the remaining patents being acquired by Fortress will turn out to have any lasting value.

FOX Business' Brittany De Lea contributed to this article.

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