The American private health technology corporation, Theranos has planned to close down after its two top executives, the founder and ex-CEO Elizabeth Holmes and former president Ramesh “Sunny “ Balwani were prosecuted for criminal wire fraud.
The blood-testing firm Theranos had claimed that they have devised several important physiological tests with a simple pinprick of blood, which was false.
Back in March, this year, reports have been made about the company’s massive fraud for which civil charges were laid up against the top officials. As per the Securities and Exchange Commission’s charges against them stated that the company had made huge profits to the tune of $700 million over long years by making false statements and showing false claims about the credibility of the company’s technology, innovations, business, and financial performance.
Edward J. Davila, US District Judge has summoned the attorneys of Ramesh and Holmes for a status conference in the San Jose Federal Court on the 1st of October at 1.30 pm. The Wall Street Journal has however reported the company’s claims that the “unsecured creditors” will be paid the debt amount before the company closes down.
The last working day was the 31st of August and the present CEO David Taylor and other supporting staff shall be at the office for a few more days until the company completely dissolves.