Walgreens has filed a lawsuit against blood analysis company Theranos.
Walgreens was once Theranos’ biggest partner and the startup used several of the drugstore chain’s Arizona store locations as testing sites. However, Walgreens formally severed ties with the startup in June, citing the myriad bad test results and a federal investigation as the reason for ending the relationship “effective immediately.”
“In light of the voiding of a number of test results, and as the Centers for Medicare and Medicaid Services has rejected Theranos’s plan of correction and considers sanctions, we have carefully considered our relationship with Theranos and believe it is in our customers’ best interests to terminate our partnership,” Walgreens’ senior VP and chief healthcare commercial market development officer Brad Fluegel told TechCrunch at the time of Walgreen’s announcement it was cutting ties.
According to court filings, Walgreens claims Theranos violated some of the non-disclosure and confidentiality agreements it agreed to when it partnered with Walgreens.
The drugstore chain requested the filings be sealed under a Delaware court to protect itself from Theranos claiming Walgreens had violated the confidentiality agreement between the two firms.
Walgreens just filed a $140 million lawsuit against @theranos in Delaware.
— John Carreyrou (@JohnCarreyrou) November 8, 2016
Walgreens declined to comment beyond confirming it had filed a lawsuit against Theranos. However, the Wall Street Journal’s John Carryrou, who first broke the news of Theranos’ faulty technology, tweeted Walgreens is suing for $140 million in Delaware.
Theranos has responded by saying it is “disappointed” Walgreens has filed the lawsuit. “Over the years, Walgreens consistently failed to meet its commitments to Theranos. Through its mishandling of our partnership and now this lawsuit, Walgreens has caused Theranos and its
“Over the years, Walgreens consistently failed to meet its commitments to Theranos,” a company statement reads. “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.”
The latest lawsuit is one of a growing number of cases filed against Theranos and its founder Elizabeth Holmes over broken promises and faulty blood testing technology.
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