In another blow to Theranos, the Silicon Valley startup that closed its blood-testing labs and fired hundreds of employees in 2015 following federal investigations into its practices, one of the company’s erstwhile partners, Walgreens, has initiated a $140 million lawsuit, The Wall Street Journal reported. The complaint was filed under seal, so details remain scant, but Walgreens confirmed that a suit against Theranos is pending.
The relationship between Walgreens and Theranos began in 2013, with Walgreens agreeing to use Theranos’s blood-testing technology in 40 of its Arizona locations. When the Theranos probe came to light, Walgreens pulled all 40 testing sites from its locations.
Theranos released a statement on November 8 that vigorously denied any wrongdoing, and placed the blame squarely on the drugstore giant. “Over the years, Walgreens consistently failed to meet its commitments to Theranos,” the startup wrote. “Through its mishandling of our partnership and now this lawsuit, Walgreens has caused Theranos and its investors significant harm.”