Walgreens sues Theranos Inc alleging breach of contract

FILE - This June 4, 2014, file photo, shows a Walgreens retail store in Boston. Walgreens said Thursday, Sept. 8, 2016, it will probably have to unload more stores than originally expected in order to ease regulatory concern about its pending acquisition of Rite Aid, a deal valued at more than $9 billion that will make the nation’s largest drugstore chain even bigger. (AP Photo/Charles Krupa, File)
FILE - This June 4, 2014, file photo, shows a Walgreens retail store in Boston. Walgreens said Thursday, Sept. 8, 2016, it will probably have to unload more stores than originally expected in order to ease regulatory concern about its pending acquisition of Rite Aid, a deal valued at more than $9 billion that will make the nation’s largest drugstore chain even bigger. (AP Photo/Charles Krupa, File)

Walgreens is suing its former partner, blood-testing startup Theranos Inc., alleging breach of contract.

The lawsuit was filed under seal in U.S. District Court for the District of Delaware. A spokesman for Deerfield, Illinois-based drugstore chain declined to comment beyond confirming the lawsuit had been filed.

The Wall Street Journal reports that the unit of Walgreens Boots Alliance Inc. is seeking $140 million, the amount it invested in Theranos.

Theranos raised millions of dollars by pitching its technology as a cheaper, faster way to run blood tests. But the companies’ yearslong partnership unraveled after questions were raised about the reliability of Theranos’ tests.

In June, Walgreens, the nation’s largest drugstore chain, severed ties with the company, closing all 40 of its Theranos Wellness Centers.

 

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