Drugstore giant Walgreen Co. sued its former lab-testing partner Theranos Inc. in federal court in Delaware, alleging it breached a contract between the two companies, court records show.

The Walgreens Boots Alliance Inc. WBA, +1.81%   unit seeks $140 million in damages, the court records show. That amount represents what it invested in Theranos, according to people familiar with the situation.

The civil suit was filed under seal in a Delaware federal court because Walgreens was concerned Theranos might assert that the action violated a confidentiality agreement between the firms, according to court records. Walgreens is alleging Theranos misled it about the state of its technology when the two firms initially forged their agreement, people familiar with the matter said.

In a statement, Theranos said it is “disappointed” that Walgreens filed suit. “Over the years, Walgreens consistently failed to meet its commitments to Theranos. Through its mishandling of our partnership and now this lawsuit, Walgreens has caused Theranos and its investors significant harm,” Theranos said. It added: “We will respond vigorously to Walgreens’ unfounded allegations, and will seek to hold Walgreens responsible for the damage it has caused to Theranos and its investors.”

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