Walgreens Settles for $44 Million in Compensation for Theranos Blood Test Customers

Once a strong advocate for Theranos' blood tests, Walgreens now finds itself settling a class-action lawsuit related to these tests. The pharmacy giant has agreed to pay $44 million to resolve the legal claims brought by customers who received inaccurate Theranos blood tests at its wellness centers in Arizona and California.

The lawsuit had been headed for trial until lawyers for both parties reached an agreement, which was initially proposed in May. The settlement still requires court approval, but if the terms remain unchanged, affected customers can expect to receive roughly double their out-of-pocket damages, according to the plaintiffs' court filing.

In the lawsuit, Walgreens was accused of displaying "willful blindness" to its partnership with Theranos and failing to adequately scrutinize the accuracy of Theranos' fingerprick testing method. However, the plaintiffs' lawyers acknowledged that Walgreens had a credible defense argument, claiming that it too had fallen victim to Theranos' fraudulent practices.

Walgreens had taken legal action against Theranos in 2016, seeking $140 million in damages shortly after terminating their partnership. The details of the settlement between the two companies were undisclosed. As for Theranos, it has ceased to exist, and its founder, Elizabeth Holmes, is currently serving a prison sentence with a scheduled release date of December 29, 2032.