In what is the latest blow to Elizabeth Holmes and her once $9 billion blood-testing company, Theranos, Walgreens is suing the embattled start-up for $140 million. The suit, which was filed in Delaware’s district court on Tuesday and first reported by The Wall Street Journal’s John Carreyrou, alleges that Theranos breached a contract between the two companies. Walgreens operated Theranos Wellness Centers across the country, where customers could go and get their blood tested. Walgreens, which was Theranos’s biggest partner, terminated the partnership between the two companies in June and shuttered 40 more Theranos Wellness Centers in Walgreens stores. Now, Walgreens is seeking $140 million in damages after Theranos allegedly misled Walgreens about the state of its technology.
Theranos shot back at Walgreens in a statement, accusing the drugstore giant of failing to meet its own commitments. “We are disappointed that Walgreens filed this lawsuit,” a spokesperson told Vanity Fair. “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.”
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