Blood-testing firm Theranos to dissolve

By Business LeadersFOXBusiness

Theranos CEO Elizabeth Holmes stepping down

The Board of Directors of Theranos announced Friday that Elizabeth Holmes has stepped down as Chief Executive Officer.

Theranos, the blood-testing company accused of perpetrating Silicon Valley's biggest fraud, will soon cease to exist.

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In the wake of a high-profile scandal, the company will formally dissolve, according to a shareholder email obtained by Dow Jones Newswires.

Federal prosecutors had filed criminal charges against Theranos founder Elizabeth Holmes and the company's former No. 2 executive.

Prosecutors alleged that they defrauded investors out of hundreds of millions of dollars and defrauded doctors and patients.

Big name investors had reportedly lost about $1 billion.

The executives have denied the charges and face a coming criminal trial.

While Theranos touted its technology as revolutionary, the blood analyzer had only been successfully tested a few times, the Securities and Exchange Commission concluded.

The company allegedly claimed that the product was used by the Defense Department on the battlefield in Afghanistan, generating $100 million in revenue for the company in 2014. The SEC found that the government did not use Theranos’ technology and that revenue in 2014 barely surpassed $100,000.

After the SEC charged her and the company with fraud earlier this year, Holmes was stripped of control and is barred from serving as an officer or director at any public company for the next decade.

In May, it was announced that a movie based on a book by Wall Street Journal writer John Carreyrou was in the works and would star Jennifer Lawrence as Holmes.

FOX Business’ Brittany De Lea contributed to this article.