Tuesday, November 8, 2016

Fraud, Lies, Deceit and a Sealed Lawsuit Seeking 140 Million Bucks

From the Wall Street Journal:

Walgreen Sues Theranos, Seeks $140 Million in Damages
Pharmacy chain alleges blood-test lab partner breached contract

HAPPIER TIMES: Theranos Inc. CEO Elizabeth Holmes, left, at a ribbon-cutting ceremony in 2013 to mark the company's partnership with Walgreens. On Tuesday, court records showed Walgreens was suing Theranos for breach of contract. Photo: Walgreens
Drugstore giant Walgreen Co. sued its former lab-testing partner Theranos Inc. in federal court in Delaware, alleging it breached a contract between the two companies, court records show.

The Walgreens Boots Alliance Inc. unit seeks $140 million in damages, the court records show. That amount represents what it invested in Theranos, according to people familiar with the situation.
The civil suit was filed under seal in a Delaware federal court because Walgreens was concerned Theranos might assert that the action violated a confidentiality agreement between the firms.

Walgreens is alleging Theranos misled it about the state of its technology when the two firms initially forged their agreement, the people familiar with the matter said.

One of the people said the action also alleges Theranos continued to mislead Walgreens, as questions about its technology and operations arose over the past year and put Walgreens and its customers at risk....MORE