Theranos settles breach of contract suit brought by Walgreens

Palo Alto, Calif.-based blood testing startup Theranos said Tuesday it settled a civil breach of contract lawsuit brought by Deerfield, Ill.-based Walgreens.

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The settlement is confidential. However, Theranos said the agreement “will result in the dismissal of Walgreens’ lawsuit against Theranos, with no finding or implication of liability.”

The settlement comes after both sides reached a tentative agreement last June, under which Theranos agreed to pay Walgreens less than $30 million. Walgreens said in an emailed statement to Becker’s Hospital Review the finalized settlement resolves the lawsuit “on mutually acceptable terms.”

Theranos and Walgreens partnered to offer blood tests at approximately 40 Walgreens stores in Arizona and California, according to a Los Angeles Times report. But the partnership ended in June 2016 after Theranos recalled tens of thousands of blood tests and provided corrected tests. Walgreens filed a lawsuit in November 2016, accusing Theranos of breach of contract.

 

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