Posted on 11/12/2016 2:19:03 AM PST by CorporateStepsister
SAN FRANCISCO – Walgreens has filed a $140 million breach of contract suit against Theranos Inc., compounding the woes of the Silicon Valley-based medical device startup.
The suit was filed under seal in Delaware federal court on Tuesday. It's not clear what exactly the Illinois-headquartered pharmacy chain is alleging, but the docket describes the case as a breach of contract suit with a demand of $140 million.
(Excerpt) Read more at insidecounsel.com ...
Guess their prospectus needed given the hairy eyeball, huh? Their claim always was pretty outlandish. God only knows how many people they screwed over with their malfeasance.
But. But. But........It was a Women Owned Business founded by a Wunderkind . . A Success Story if there ever was one
Walgreen’s is sexist
Yes.
I look forward to this happening more and more as other investors take her to pieces in court. She’s made a lot of enemies and throw in her fruit-loop company policies and I am certain that they’ll end up telling the press all sorts of stories about her demented reign as Queen of Silicon Valley.
Per Fortune Magazine:
Theranos and Walgreens first teamed up in 2010, and opened Theranos “Wellness Centers” in 40 locations where they offered blood-tests to patients. Theranos, founded in 2003 by Elizabeth Holmes, set out to develop technology that would allow for blood tests to be performed with just a few drops of blood from a finger prick.
The Center for Medicare and Medicaid Services also banned Holmes from operating a lab for two years, and in June, Walgreens severed its ties with the company.
Walgreens’ lawsuit reportedly claims that it was misled by Theranos over the state of its blood-testing technology when the companies first struck a deal and even as its technology was beginning to be challenged, according to the Wall Street Journal, citing anonymous sources. Walgreens invested $140 million in Theranos in the form of debt convertible to equity, which is the amount it seeks to recover in the lawsuit.
Theranos has previously acknowledged being under criminal investigation by the U.S. Justice Department and civil investigation by the U.S. Securities and Exchange Commission. The S.E.C. investigation is reportedly focusing on whether false statements were made to investors, while the Justice Department is believed to be focusing on whether false statements were made to investors and federal regulators. The company has denied any wrongdoing.
Doesn’t anyone perform “due diligence” anymore?
Walgreen’s is a for profit capitalist business, they need to make money to stay in business. Do they have to many stores, YES. Are they higher priced on goods than Walmart, YES.
Walgreen’s got smart and refused EXPRESS SCRIPTS FRAUD PRONE, no profit contract for TRICARE PRIME/LIFE. Which is Ret. Military secondary to Medicare.
I loath Express Scripts with a passion just for their Fraud alone, but add in it takes the idiots a month to fill a script and 2 weeks a refill is NOT good. Nor is their a ID Sign for, for THOUSANDS in meds just left in a unprotected mail box in all kinds of weather. We even get our neighbors meds. As both he and hubby are TRICARE LIFE Military Retirees. USPS can’t read computer printed addresses it seems.
A lot of people are so eager for the ‘next big thing’ that they will leap on the most novel innovation in order to basically find someone or something to get excited about. It’s all about excitement and an eagerness to get some kind of hype going. It’s a real issue I do have with Silicon Valley as an industry.
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