11 Nov Nation’s Largest Drugstore Chain Sues Former Consumer Healthcare Technology Partner For Breach of Contract

This week Walgreens sued its former partner Theranos Inc., alleging breach of contract.  Walgreens seeks $140 million, the amount it invested in Theranos according to The Wall Street Journal.  Much is not known at this time about the details of the suit as it was filed under seal in the United States District Court for the District of Delaware, and Walgreens’ spokesperson has declined to comment beyond confirming the lawsuit has been filed.

Theranos claims that its technology is a cheaper, faster way to run blood tests.  But these claims were recently put into question, after its years-long partnership with Walgreens fell apart due to concerns raised about the reliability of Theranos’ tests.  Walgreens’ concerns came to a head in June when Walgreens severed ties with the company, closing all 40 of its Theranos Wellness Centers.

Theranos said Tuesday it plans to respond “vigorously” to Walgreens’ allegations, stating that “[t]hrough its mishandling of our partnership and now this lawsuit, Walgreens has caused Theranos and its investors significant harm.”  In April of this year, Theranos announced it was under investigation or inspection by several government regulators, and in July Theranos founder Elizabeth Holmes was banned from owning or running a medical lab for two years.