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UBiome recordsdata for chapter 5 months after FBI raid – Information by Automobilnews.eu

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UBiome recordsdata for chapter 5 months after FBI raid


uBiome co-founder and co-CEO Jessica Richman, who was positioned on administrative go away in Might 2019 pending an board investigation into the start-ups billing practices.

Reuters | Mike Blake

UBiome, the health-tech start-up that suspended scientific operations earlier this 12 months after its workplace was raided by the FBI, has filed for Chapter 11 chapter safety.

The corporate, which offered well being exams that would supposedly inform customers about their intestine well being, filed for chapter in Delaware and mentioned in a press launch on Wednesday that it plans to “facilitate an orderly and environment friendly sale of its ongoing enterprise, merchandise in improvement, know-how, and lab capabilities.” It obtained debt financing from 8VC and Silicon Valley Financial institution to proceed working and paying staff and clients whereas it seeks a purchaser.

UBiome was raided in Might by the FBI as a part of an ongoing probe into its billing practices. Sources advised CNBC round that point that the corporate was billing customers a number of instances with out their consent, and insurance coverage have been starting to reject the claims.

Co-founders Jessica Richman and Zachary Apte have been placed on administrative go away whereas the board investigated the matter.

Performing CEO Curtis Solsvig mentioned in Wednesday’s assertion that “uBiome’s enterprise will probably be higher positioned for achievement underneath new possession.”

The corporate, which raised greater than $100 million in enterprise financing from traders together with 8VC and Y Combinator, mentioned it could proceed to promote certainly one of its exams and preserve some staffing to assist the product.

WATCH: Well being care might problem tech for market management

UBiome recordsdata for chapter 5 months after FBI raid – Information by Automobilnews.eu
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