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Theranos Will Return $4.65 Million To Arizona Consumers

Theranos brochures
Tracy Greer/KJZZ
Theranos brochures explaining the testing the company offered in Arizona.

Theranos Inc., the much criticized blood-testing startup, announced Tuesday that it has settled a lawsuit brought by former partner and drugstore chain, Walgreens, and its entities. 

The companies did not disclose terms of the settlement, but Theranos said the agreement will end Walgreens' lawsuit, with no implication of liability. Theranos had developed a novel finger-prick method that was later found to not meet minimum U.S. blood testing standards.

Walgreens terminated its partnership and filed a lawsuit that alleged breach of contract. Theranos agreed to return $4.65 million to Arizona consumers, along with $200,000 in civil penalties paid to the Arizona Attorney General's Office. The company closed all 40 of its testing locations at Arizona Walgreens stores.

Theranos still faces a civil investigation by the Securities and Exchange Commission and a criminal probe by the Justice Department. Groups of patients and investors have also filed lawsuits. Theranos says those suits are without merit.

Heather van Blokland was a host at KJZZ from 2016 to 2021.