Theranos agrees to pay Walgreens less than $30M to settle breach of contract lawsuit

Palo Alto, Calif.-based blood testing startup Theranos told investors it has reached an agreement in principle to pay less than $30 million to settle a civil lawsuit brought by Deerfield, Ill.-based Walgreens, according to The Wall Street Journal.

If the tentative agreement is finalized, the failed partnership with Theranos will cost Walgreen's more than $100 million. Walgreens had sought damages in the suit of $140 million — the full amount it invested into the partnership. 

The lawsuit, filed in November 2016, is sealed so as not to violate the companies' confidentiality agreements, but sources familiar with the matter told WSJ Walgreens sued Theranos for breach of contract.

Walgreens ended its partnership with Theranos in June 2016 after the blood testing startup voided tens of thousands of tests and issued corrections. Walgreens had Theranos blood testing centers in 40 stores in Arizona and one in California. 

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