Walgreens is suing former lab testing partner Theranos for $140 million in damages, the amount Walgreens initially invested in the health technology company, alleging breach of contract.
Walgreens alleges Theranos misled the company about its technology and operations when the two firms initially made the deal, putting Walgreens customers at risk. Walgreens ran Theranos blood drawing services in 40 of its stores in Phoenix, Arizona and one in California, with plans to expand nationwide. Walgreens broke ties with Theranos back in June of this year.
In a statement, Theranos responded to Walgreen’s suit, saying: “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.”
What initially drew Walgreens and other investors to Theranos was a supposed breakthrough blood test that required only a minute amount of blood to screen for 240 different ailments. Investments had amounted to nearly $800 million and a former valuation near $9 billion.
Theranos has also faced lawsuits from investors and a criminal investigation by federal prosecutors and the SEC. Charges included deception, alleging Theranos inflated the number and types of tests its technology could perform and that it misled investors about the status of FDA approval.
