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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...

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