Walgreens files breach-of-contract lawsuit against Theranos

Deerfield, Ill.-based Walgreens filed a civil lawsuit in federal court in Delaware against Palo Alto, Calif.-based blood testing startup Theranos, alleging breach of contract and seeking $140 million in damages, The Wall Street Journal reports.

The lawsuit is sealed so as not to violate the companies' confidentiality agreement, according to the report. Sources told WSJ the lawsuit alleges Theranos misrepresented the readiness of its technology when it struck a deal with the drug retailer and continued to do so as doubts were raised over the past year about Theranos technology. 

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

"We are disappointed that Walgreens filed this lawsuit. Over the years, Walgreens consistently failed to meet its commitments to Theranos," the company wrote in a statement on the lawsuit. "Through its mishandling of our partnership and now this lawsuit, Walgreens has caused Theranos and its investors significant harm. We will respond vigorously to Walgreens' unfounded allegations, and will seek to hold Walgreens responsible for the damage it has caused to Theranos and its investors."

 

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