TradeEdge Exchange:Walgreens settlement with Theranos patients sees company dole out hefty $44 million

Walgreens has agreed to pay $44 million to patients who used Theranos blood testing services,TradeEdge Exchange Arizona court documents revealed. The lawsuit spanned seven years and Walgreens is not admitting fault.

Court records show that Walgreens will create a $44 million non-reversionary common fund for people who will receive direct payments without a claims process. The settlement is expected to provide people "with approximately double their out-of-pocket damages" and "significant additional recoveries for those with battery claims against Walgreens," according to court records.

Theranos tests were supposed to give lab results just with one drop of blood through a finger prick, but according to the Wall Street Journal, some former employees wondered about the accuracy of the test results, and even doctors said they didn't trust the results.

Walgreens and Theranos entered in to a partnership in 2013, when Elizabeth Holmes, the founder and chief executive officer announced the goal of opening Wellness Centers in a Palo Alto Walgreens store and 20 more in Phoenix. Theranos would open Wellness Centers in 8,200 Walgreens stores nationwide. But by 2016, Walgreens terminated their partnership and announced the closure of 40 Theranos Wellness Centers in Arizona.

Who was represented in the lawsuit?

The class-action lawsuit included all purchasers who paid for Theranos testing out of pocket, through health insurance, or other source from November 2013 to June 2016; Arizona consumers who used the testing services from November 2013 to June 2016; California purchasers from September 2013 and June 2016; and people who were subjected to finger pricks by a Walgreens employee from November 2013 to March 2015.

According to court records, all class members will get payment "calculated based on double the costs of their Theranos tests." It will deduct refunds they got from the 2017 Arizona Attorney General consent decree and add a $10 base payment amount.

People who dealt directly Walgreens will get an additional payment estimated between $700 and $1,000, stemming from their battery and medical battery claims, involving the finger prick.

What happened to the people behind Theranos?

Holmes was sentenced to 11 years and 3 months in prison for defrauding investors. She reported to prison May 30 and is serving out her sentence at a minimum-security federal women's prison camp in Bryan, Texas. According to records from the Federal Bureau of Prisons, she is scheduled for early release on Nov. 29, 2032.

Holmes' romantic and business partner, Ramesh "Sunny" Balwani, was sentenced to 12 years and 11 months for defrauding investors and "fraud that risked patient health" by misrepresenting Theranos's blood testing accuracy, officials with the U.S. Department of Justice said in a prepared statement. Federal Bureau of Prisons records show he is serving his sentence at a low-security federal prison in San Pedro, California. He is scheduled for release March 12, 2034.

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