4 ms·
"In recent weeks, Walgreens also was named as a co-defendant in one of three civil lawsuits filed by consumers against Theranos. The suits, which seek class-act
by aresant 10y ago
"In recent weeks, Walgreens also was named as a co-defendant in one of three civil lawsuits filed by consumers against Theranos. The suits, which seek class-action status, allege that Theranos misled the public about the nature and accuracy of its blood-testing technology."
Walgreens had an official partnership, including an investment of $50m, into Theranos.
If there is actual consumer damage shown its Walgreens that's going to find themselves writing checks to tort classes and attorneys.
In the entire WSJ expose it sounded like Walgreens management was as snowed-over as the rest of us with regard to Theranos' "technology" but it's crazy that they didn't do more relatively simple due diligence given their exposure
- jalonso510 10y agoWho's writing the checks really depends on what's in the contract between Walgreens and Theranos. I haven't seen it, but it wouldn't be out of the ordinary for Theranos to have agreed to indemnify Walgreens against claims over the accuracy of the tests. If so, Theranos would be on the hook even if Walgreens is getting sued as well, and the real question is how big the claims are and whether they will be enough to to bankrupt Theranos.
- mathattack 10y agoIn this case I believe that the contract was very tilted towards Theranos. The execs in charge were forced out previously. [0] I don't know any specifics on indemnification though, but if Theranos goes under, they can't indemnify much. [0] http://www.nytimes.com/2016/04/22/business/a-once-avid-ally-walgreens-is-struggling-to-shake-off-theranos.html http://www.nytimes.com/2016/04/22/business/a-once-avid-ally-...
- pdabbadabba 10y ago> if Theranos goes under, they can't indemnify much. Insurance!
- mathattack 10y agoDo you think they're fully insured? (I have no idea)