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Walgreens agrees to pay $44M to Theranos customers

The retailer previously offered the faulty blood tests in stores

Walgreens Boots Alliance has agreed to pay $44 million to settle a class action lawsuit brought by customers who received the faulty Theranos blood tests throughout its stores in Arizona and California, reports Bloomberg

The pharmacy store chain previously offered Theranos blood tests at “wellness centers” in its stores, however, when the public learned that the tests were faulty, Bloomberg says the plaintiffs’ lawyers acknowledged that Walgreens had a “potent” defense argument when it said that it was also defrauded by the blood-testing company.

Lawyers from both sides made a deal after a U.S. district judge ordered the case to go to trial, and they filed a notice for a tentative settlement back in May. While the court still has to approve the proposal, those customers will receive around double their out-of-pocket damages if the terms in the details in the court filing remain unaltered. 

Walgreens took Theranos to court in 2016 for a reported $140 million shortly after it formally ended the relationship, eventually settling the lawsuit in a way that “resolve[d] all claims,” but the details in the agreement remain undisclosed. Theranos founder Elizabeth Holmes is currently serving time in prison with a December 2032 release date. 

Walgreens told Supermarket News it will not comment on the settlement.

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