A controversial health tech firm, known for its fraudulent claims regarding the accuracy of its blood-testing technology, has reportedly closed its doors.
The firm claimed it could conduct a variety of physiological tests using just a few drops of blood collected via its portable blood analyser, including tests for conditions such as cancer and diabetes. After raising $700 million from investors, it became one of the darlings of Silicon Valley.
However, the technology was flawed, leading to the firm’s CEO, Elizabeth Holmes, and president, Ramesh ‘Sunny’ Balwani, being charged with fraud by the US Securities and Exchange Commission. The SEC accused them of orchestrating an ‘elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.’ Holmes and the company have since settled these allegations.
The Wall Street Journal, which originally reported the explosive allegations against the firm, has now reported that the company will dissolve. It stated that acting chief and general counsel David Taylor sent an email to shareholders explaining the necessity to shut its doors due to the complex terms of a deal with Fortress Investment Group, which had saved the firm from bankruptcy the previous year.
The dissolution of this once-celebrated health tech firm brings an end to a tumultuous chapter in Silicon Valley’s history, marked by high-profile fraud allegations and the downfall of its key executives.