Walgreens settles consumer claims it knew Elizabeth Holmes company Theranos was a fraud
Walgreens Boots Alliance Inc. reached a tentative settlement with consumers who received Theranos Inc. blood tests in Arizona and California and claimed that the drugstore giant was “willfully blind” to fraud at the blood-testing startup.
By Peter Blumberg | Bloomberg
Walgreens Boots Alliance Inc. reached a tentative settlement with consumers who received Theranos Inc. blood tests in Arizona and California and claimed that the drugstore giant was “willfully blind” to fraud at the blood-testing startup.
Lawyers for the company and consumers filed a notice with a federal judge in Arizona that they have reached a settlement-in-principle and expect to submit a request for court approval in about three weeks. Terms of the accord weren’t provided in Monday’s filing.
US District Judge David Campbell in Phoenix this month ordered the case to go to trial after concluding there are factual issues that only a jury can resolve over whether Walgreens entered into an ill-fated partnership with Theranos to offer tests at its drugstores even while it had good reason to suspect the startup’s technology didn’t really work.
Elizabeth Holmes, the founder and former chief executive officer of Theranos, was convicted of fraud last year and sentenced to 11 1/4 years in prison. The company’s former president, Ramesh “Sunny” Balwani, was also found guilty by a jury and is now serving a 13-year sentence.
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