Photo: AP

Walgreens is suing biotech startup Theranos after the company shuttered all of its labs and wellness centers following reports about problems with its blood testing devices and labs. Walgreens was a major Theranos partner that offered some of its services at Walgreens pharmacies.

According to the Wall Street Journal, the lawsuit is filed under seal because Walgreens was worried it may violate a confidentially agreement it had with Theranos.

From the Journal:

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One of the people said the action also alleges Theranos continued to mislead Walgreens, as questions about its technology and operations arose over the past year and put Walgreens and its customers at risk.

Under a contract, Theranos ran blood-draw sites inside 40 Walgreens stores in the Phoenix area and one in northern California. Walgreens had planned to introduce Theranos blood-draw sites at thousands of its stores around the nation.

Walgreens terminated its relationship with the company in June, saying it “carefully considered our relationship with Theranos and believe it is in our customers’ best interests to terminate our partnership.” In a comment to Gizmodo, Walgreens confirmed that a suit was filed in Delaware but declined to comment further. Walgreens is looking to recoup its investment in Theranos, which is where the $140 Million number comes from.

We’ve reached out to Theranos and will update this post if we hear back.

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[Wall Street Journal]