Lab test startup uBiome filed a motion to convert from Chapter 11 to Chapter 7 bankruptcy, under which it will liquidate its assets and cease operations, the San Francisco-based company announced Oct. 1.
The startup, which was launched in 2012 and offered to draw personalized health and wellness insights from microbiome tests, first came under fire in April, when the FBI confirmed it had raided uBiome headquarters based on allegations of improper billing practices.
Here, a recap of the biggest events leading up to uBiome's Chapter 7 filing:
1. On May 1, shortly after the FBI and several other state and private organizations launched investigations into billing practices, uBiome placed co-CEOs and founders Jessica Richman and Zac Apte on administrative leave.
2. Within a week, the company had temporarily halted clinical operations, suspended sales of two tests and began refunding pending out-of-pocket payments.
3. Interim CEO Curtis Solsvig informed employees on July 10 that approximately half of uBiome's global workforce would be laid off, affecting around 114 positions in the U.S. and Latin America. COO Nat Walton and lab director Susan Zneimer were reportedly included in the layoffs.
4. The company announced on Sept. 4 that it had filed for Chapter 11 bankruptcy. In a press release, uBiome detailed its plans to "facilitate an orderly and efficient sale of its ongoing business, products in development, technology and lab capabilities," while continuing to focus on its last remaining test, Gut Explorer.
5. On Sept. 30, spokespeople from uBiome and CMS confirmed to Business Insider that the company had lost the government and lab certification necessary to perform its clinical tests.
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