Theranos, Walgreens blood testing false ad $45.33M class action lawsuit settlement

Theranos and Walgreens agreed to pay a combined $45.33 million to resolve claims that Theranos blood testing services were misleadingly advertised.

The settlement benefits consumers who purchased Theranos testing services between November 2013 and June 2016, regardless of whether they paid for these services out of pocket, through health insurance or through any other source.

In addition to the national class, the settlement benefits two statewide subclasses: an Arizona subclass of class members who made Theranos purchases in Arizona between November 2013 and June 2016 and a California subclass of class members who made Theranos purchases in California between September 2013 and June 2016.

The settlement also benefits a Walgreens Edison subclass of Theranos purchasers who were subjected to “tiny” blood draws or fingerpricks by a Walgreens employee between November 2013 and March 2015.

According to the class action lawsuit, Theranos and Walgreens conspired to defraud customers by making them believe they could have sophisticated blood tests done through only a “tiny” blood draw. Plaintiffs in the case claim that they gave blood at Theranos and Walgreens stores under false pretenses since they did not know the tests were unreliable and not market-ready.

Theranos was a consumer healthcare tech startup company valued at $10 billion at its peak — before its founders were charged with fraud by state and federal authorities. Walgreens invested millions of dollars into a partnership with Theranos.

Walgreens agreed to pay $44 million to resolve the testing class action lawsuit. Theranos, which is now dissolved, agreed to contribute $1.33 million to the settlement fund.

Under the terms of the settlement, all class members can receive a base payment of $10 in addition to up to two times the total costs of their Theranos blood testing services, less any payments already received through the Arizona attorney general’s 2017 consent decree.

Walgreens Edison subclass members can receive an additional payment as compensation for battery and medical battery. These payments are estimated to be between $700 and $1,000 per subclass member. 

The deadline for exclusion and objection is Jan. 8, 2024.

The final approval hearing for the settlement is scheduled for Feb. 6, 2024.

No claim form is required to receive settlement payments. Class members who do not exclude themselves will automatically receive a settlement payment but can update their address on the settlement website.