Once upon a time, Walgreens proudly touted Theranos’ groundbreaking blood tests, offering them at its in-store “wellness centers.” However, this cozy partnership took a dramatic turn when it became glaringly evident that Theranos’ tests were more fiction than fact. This revelation marked the beginning of a tumultuous separation between the two companies. Fast forward to today, and news from Bloomberg reveals that Walgreens has decided to part with a hefty $44 million to bring an end to a class action lawsuit brought forth by customers who had the unfortunate experience of receiving unreliable Theranos blood tests at Walgreens centers in Arizona and California.
The resolution of this lawsuit came about after both parties’ legal teams hammered out an agreement following a directive from a US district judge to proceed to trial. This agreement was initially signaled in May when both sides submitted a notice outlining a potential settlement. Although final approval from the court is still pending, the plaintiffs, as per their court filing, stand to recover approximately double the amount of their out-of-pocket expenses if the terms of the settlement remain intact.
The heart of the lawsuit revolved around accusations against Walgreens of being “willfully blind” to its partnership with Theranos, suggesting that it should have harbored suspicions regarding the reliability of Theranos’ fingerprick testing method. Bloomberg’s report highlights that the plaintiffs’ legal representatives did acknowledge that Walgreens could mount a “potent” defense by claiming that it too had been deceived by the fraudulent blood-testing company.
Walgreens took Theranos to court in 2016, seeking a hefty $140 million in damages shortly after formally severing ties. Ultimately, the lawsuit was settled, putting to rest “all claims.” Unfortunately, the details of that settlement remain shrouded in mystery.
As for Theranos, it has met its demise, with the company’s founder, Elizabeth Holmes, currently serving time in prison, slated for release on December 29, 2032. This chapter in the saga of healthcare innovation serves as a cautionary tale about the perils of unchecked ambition and misplaced trust in the world of technology and medicine.
Frequently Asked Questions (FAQs) about settlement
What was the nature of the lawsuit between Walgreens and Theranos?
The lawsuit between Walgreens and Theranos revolved around allegations that Walgreens had been “willfully blind” to the problems with Theranos’ blood tests and that it should have been suspicious of the accuracy of Theranos’ fingerprick testing method. It also included claims that Walgreens had been defrauded by Theranos.
How much will Walgreens pay to settle the class action lawsuit?
Walgreens has agreed to pay $44 million to settle the class action lawsuit brought by customers who received flawed Theranos blood tests through its centers in Arizona and California.
When did Walgreens take Theranos to court, and for what amount?
Walgreens filed a lawsuit against Theranos in 2016, seeking a reported $140 million in damages shortly after terminating their partnership.
What is the status of Theranos and its founder, Elizabeth Holmes?
Theranos, once a promising healthcare technology company, has ceased to exist, and its founder, Elizabeth Holmes, is currently serving time in prison. Her scheduled release date is December 29, 2032.
Are the details of the settlement between Walgreens and Theranos publicly disclosed?
No, the details of the settlement between Walgreens and Theranos remain undisclosed.