Theranos offered its blood-testing services through some 40 Walgreens stores, mostly in Arizona. Walgreens terminated its partnership with Theranos in June 2016 after the firm had to void a large number of lab results. That move also came on the heels of a series of Wall Street Journal articles that questioned the firm's technology and testing procedures, and after regulators uncovered deficiencies in its lab practices. Theranos shuttered its labs in October 2016 as it pivoted to commercializing technologies.
Walgreens filed suit against Theranos, alleging that the firm breached the contract between the companies. The pharmacy chain said it was seeking to recoup its investment.
The Journal reports that the two have reached a settlement of more than $25 million. It adds that Theranos told investors in June that it had $54 million left on hand and was spending $10 million a month, though said it would be reducing its burn rate. The firm sought to raise some $50 million from investors in June, though the Journal says it's unclear whether it was successful in that endeavor.
Jezebel notes that Theranos' "settlement with Walgreens may be a decimating blow to the enterprise."