June 21, 2017 / 3:42 PM / a year ago

Theranos, Walgreens reach agreement to settle lawsuit - WSJ

June 21 (Reuters) - Theranos Inc has told its investors it has reached an agreement in principle to settle a lawsuit by Walgreens Boots Alliance Inc that had alleged the laboratory startup breached their contract, the Wall Street Journal reported, citing people familiar with the matter.

The tentative agreement calls for Theranos to pay Walgreens less than $30 million, the report said, citing some of the people familiar with the matter.

The pact hadn't been completed as of late Tuesday and terms could change, according to the report. (on.wsj.com/2rViNhQ)

Walgreens declined to comment, while Theranos was not immediately available to comment.

Walgreens sued Theranos in November seeking $140 million in damages.

Theranos was founded by Elizabeth Holmes in 2003 to develop an innovative blood testing device that would give quicker results using just one drop of blood.

The Palo Alto, California-based company, once valued at $9 billion, ran into trouble after the Wall Street Journal published a series of articles beginning October 2015, suggesting its blood-testing devices were flawed and inaccurate.

Walgreens terminated its relationship with Theranos in June 2016, and closed operations at all 40 Theranos Wellness Centers at its stores in Arizona.

The following month, Holmes was barred by a U.S. regulator from owning or operating a lab for at least two years.

Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Sriraj Kalluvila

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below