Walgreens Sues Theranos in Breach-of-Contract Lawsuit, Seeks $140M in Damages
Walgreen Co. sued its former lab-testing partner Theranos Inc. in federal court in Delaware, alleging it breached a contract between the two companies, court records show. The Walgreens Boots Alliance is seeking $140 million in damages. The amount relates to what the company invested in Theranos. The civil suit is alleging it was misled about the state of Theranos’ technology. Theranos pledged to fight the allegations.
Total Retail's Take: Theranos is on the brink. The startup is rumored to possibly be liquidating. Last month, Theranos shut down all its blood-testing facilities and said it would focus on developing products that could be sold to outside labs. Currently, Theranos is appealing sanctions proposed by federal regulators, including a ban on founder Elizabeth Holmes from the blood-testing industry for at least two years. This latest lawsuit from Walgreens could be the nail in the coffin for Theranos.