Walgreens Boots Alliance sues Theranos for $140 million

Walgreens Boots Alliance has filed a suit against Theranos seeking $140 million in damages. Walgreens filed the suit, Walgreen Co. v. Theranos Inc., U.S. District Court, District of Delaware, No. 16-01040 under seal, so the retailer did not issue a statement.

However, the suit is likely regarding its June 12 announcement that Deerfield, Ill.-based Walgreens was terminating its relationship and closing operations at all 40 Theranos Wellness Centers at its stores. 

“In light of the voiding of a number of test results, and as the Centers for Medicare and Medicaid Services (CMS) has rejected Theranos’ 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,” Brad Fluegel, Walgreens SVP and chief health care commercial market development officer, said in June.

In January, Walgreens informed Theranos that it "must immediately cease sending clinical laboratory tests provided through its Wellness Centers at Walgreens to the Theranos lab in Newark, Calif., which has been the subject of ongoing CMS review."

Theranos issued a Nov. 9 response to the lawsuit stating it was "disappointed."

"We will respond vigorously to Walgreens' unfounded allegations and will seek to hold Walgreens responsible for the damage it has caused Theranos and its investors," Theranos stated.

Palo Alto, Calif.-based Theranos was founded in 2003 with a goal of developing a blood-testing device that could deliver more rapid results by using only a drop of blood.