UBiome, a startup that sold gut health tests to consumers, has filed for Chapter 11 bankruptcy, according to CNBC.
The company had suspended clinical operations earlier this year after being raided by the FBI in May. The raid stemmed from allegations uBiome was billing customers multiple times without their consent, sources told CNBC.
In a press release Sept. 4, uBiome said it plans to "facilitate an orderly and efficient sale of its ongoing business, products in development, technology and lab capabilities."
Employees will continue to be paid and customers can still obtain gut testing while uBiome seeks a new owner. Interim CEO Curtis Solsvig said that "uBiome's business will be better positioned for success under new ownership."