Walgreens Board Says It Reacted Quickly To Theranos Fraud

Law360, Wilmington (May 8, 2019, 7:57 PM EDT) -- The directors of pharmacy chain Walgreens told a Delaware Chancery judge Wednesday that they reacted swiftly to news of fraud from diagnostic testing company Theranos Inc., so an investor derivative suit saying they failed in their oversight responsibilities should be dismissed.

During oral arguments on the directors' motion to dismiss in Wilmington, Walgreens attorney Nilofer Umar of Sidley Austin LLP said the complaint from shareholder James Hays contained no factual allegations involving the directors and pointed to no red flags that the board should have reacted to in order to prevent falling prey to the Theranos scheme.

"There are numerous facts...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!