(Bloomberg) -- Elizabeth Holmes, who founded blood-testing company Theranos Inc. only to watch it unravel amid revelations that her main product was a fraud, has stepped down as chief executive officer.
After the testing device that Holmes claimed would be able run hundreds of medical tests on a single drop of blood was shown not to work, Holmes was barred from running a clinical company by U.S. regulators, was sued by investors, and the company let go many of its employees.
Since then, she has been seeking funding for a new venture, a Wall Street Journal reporter who wrote about many of the company’s controversial activities told the magazine Vanity Fair.
Holmes will keep her role as chair of the board, Theranos said in a statement Friday. David Taylor, the company’s general counsel, will take over as CEO.
©2018 Bloomberg L.P.