Theranos

Report: Theranos to Settle $140 Million Lawsuit with Walgreens

By MedTech Intelligence Staff
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Theranos

The settlement is one of a few that the company has made within the past several months.

Theranos will reportedly pay Walgreens less than $30 million to settle the $140-million lawsuit that Walgreens filed against the company late last year alleging breach of contract, according to The Wall Street Journal. Neither Walgreens nor Theranos have publicly commented on the lawsuit.

Nearly a year ago, CMS slapped Theranos with several sanctions, including revoking the company’s Newark, California lab’s CLLA certificate and suspending the lab’s approval to receive Medicare and Medicaid payments for hematology services. In April, the company reached a global settlement agreement with CMS that resolved outstanding legal and regulatory issues between the two parties. CMS withdrew is revocation of the company’s CLIA operating certificates and lowered the civil monetary penalty to $30,000, and Theranos agreed that it will not own or operate a clinical lab within until 2019. According to a Theranos news release, the company left the clinical lab and retail business in 2016 and is focusing efforts on its automated miniaturized testing platforms.

In April Theranos also stated that it will reimburse Arizona residents for any amounts paid for the company’s blood testing services between 2013 and 2016, whether or not the company received payment for the tests or if the tests were voided or corrected. It will also pay $200,000 in civil penalties to the attorney general’s office and $25,000 in legal fees.

In May Theranos reached a settlement with hedge fund firm Partner Fund Management, which dismissed all claims by the firm against Theranos, its officers and directors. The terms of the settlement have not been released.

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