Walgreens Boots Alliance, Inc. has agreed to pay $44 million to settle a lawsuit brought by customers who received flawed blood test results from Theranos during the pharmacy chain's partnership with the now-failed company. The settlement, reached after nearly seven years of negotiations, will reimburse claimants double what they paid in out-of-pocket damages and provide additional recoveries for those with battery claims against Walgreens.
The blood testing results in question were conducted by Theranos after Walgreens employees drew the customers' blood. Theranos, founded by Elizabeth Holmes in 2003, came under scrutiny in 2015 when it was revealed that the company was using traditional machines for testing instead of its own technology, leading to flaws in its diagnostics.
In 2016, Walgreens terminated its relationship with Theranos and closed operations at 40 blood-draw sites run by the company in Arizona. Later that year, Walgreens sued Theranos for $140 million, accusing the startup of breaching a contract.
Theranos shut down its operations in 2018, the same year Holmes and her former partner, Ramesh "Sunny" Balwani, were indicted on fraud and other charges. Both were convicted and are currently serving prison sentences.
As part of the settlement, Balwani and Theranos ABC agreed to pay a combined $1.33 million to the plaintiffs. However, no agreement could be reached with Holmes, as she does not have the personal resources to contribute to a settlement or pay any judgment against her.
While Walgreens has agreed to settle the lawsuit, the company maintains that it was deceived by Theranos. The pharmacy chain asserts that it was a victim of Theranos' fraud and was unaware that the tests were not market-ready.
In summary, Walgreens Boots Alliance has agreed to pay $44 million to settle a lawsuit brought by customers who received faulty blood test results from Theranos. The settlement provides reimbursement for damages and additional recoveries for battery claims against Walgreens. Theranos shut down in 2018, and its founders, Elizabeth Holmes and Ramesh "Sunny" Balwani, were convicted on fraud charges. Balwani, Theranos ABC, and Walgreens have agreed to pay a combined $1.33 million to the plaintiffs. Walgreens maintains that it was unaware of Theranos' fraudulent activities.