Walgreen Sues Theranos For Agreement Violation

(RTTNews) - Drugstore giant Walgreen Co. sued former laboratory-testing partner Theranos Inc. in a federal court in Delaware, alleging it breached a contract between the two companies.

The Walgreens Boots Alliance Inc. (WBA) unit is seeking $140 million in damages, equal to the amount it invested in Theranos, reports said citing people familiar with the matter.

The reports said Walgreens claims it was misled by Theranos about the state of its technology when the two companies forged their agreement.

Theranos said, "We are disappointed that Walgreens filed this lawsuit. Over the years, Walgreens consistently failed to meet its commitments to Theranos. 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."