Walgreens sues Theranos alleging breach of contract

A spokesman for Deerfield, Illinois-based Walgreens declined to comment Tuesday beyond confirming the lawsuit had been filed.

Theranos raised millions of dollars by pitching its at-home blood testing kits as cheaper and faster, but closed its labs after concerns about the effectiveness of its products.

On a statement posted on their website, Theranos said the company was "disappointed" that the drug store chain filed the suit.

Theranos and Walgreens first teamed up in 2010, and opened Theranos "Wellness Centers" in 40 locations where they offered blood-tests to patients.

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. Walgreens is looking to recoup its investment in Theranos, which is where the $140 Million number comes from.

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The lawsuit against Theranos was filed in a federal court located in Delaware. But a year ago, a series of Wall Street Journal reports questioned the legitimacy and accuracy of the company's technology, and Theranos's story began to crumble.

Walgreens and Theranos began working together in 2010 with the goal of placing the startup's proprietary Edison blood-testing machines in pharmacies around the county.

Walgreens claims in the filing that it entered into an agreement with Theranos in April 2010 that held both companies "in strict confidence and to maintain as confidential all" information between the two. Theranos claimed Walgreens has "consistently failed to meet its commitments to Theranos" and mishandled the companies' partnership.

Walgreens told the Journal that it had no comment regarding the lawsuit.

According to the Journal article, Walgreens alleges in its lawsuit that Theranos continued to mislead the company after questions about Theranos's technology and operations arose during the past year, putting the drugstore chain's customers at risk.

  • Myrtle Hill