23andMe files for bankruptcy as California AG urges customers to delete data

Hereditary screening business 23andMe declared Chapter 11 personal bankruptcy defense to assist the $50 million business offer itself, the business revealed Sunday.

23andMe’s saliva-based sets have actually been assisting consumers discover their origins considering that 2006, and the business stated it will continue running while the personal bankruptcy court helps with the sale procedure.

News of the relocation raised issues about how the individual information of countless 23andMe consumers will be dealt with.

California Chief Law Officer Rob Bonta provided a “customer alert” relating to the “chest of delicate customer information 23andMe has actually generated,” advising Californians that they deserve to direct the business to erase their hereditary information, damage their test samples and withdraw authorization for hereditary information to be utilized for research study.

” There are no modifications to the method the Business shops, handles, or safeguards client information,” 23andMe stated in a media release.

THIS IS WHAT NOBODY PLANNED COULD HAPPEN AFTER TAKING A DNA TEST

The business has actually experienced tumult in the last few years. Last November, 23andMe stated that it was cutting its headcount by 40%, or more than 200 staff members.

Co-founder and CEO Anne Wojcicki has actually resigned after several stopped working takeover quotes, Reuters reports, however she stated on X that she did it “so I can be in the very best position to pursue the business as an independent bidder.”

23ANDME CUTS 40% OF ITS LABOR FORCE

Wojcicki will be changed by CFO Joe Selsavage on an interim basis.

23andMe stated it protected a debtor-in-possession (DIP) funding dedication for about $35 million and anticipates to continue running throughout the sale procedure. It did not state if it had any other buyout interest or deals.

It noted both possessions and approximated liabilities of $100 million to $500 million.

A month before its restructuring, 23andMe accepted pay $30 million and offer 3 years of security tracking to settle a claim implicating it of stopping working to safeguard the personal privacy of 6.9 million consumers whose individual details was exposed in an information breach in 2023.

” We wish to thank our staff members for their commitment to 23andMe’s objective,” Mark Jensen, Chair and member of the Unique Committee of the Board of Directors, stated in a declaration. “We are devoted to supporting them as we move through the procedure.”

” In addition, we are devoted to continuing to secure client information and being transparent about the management of user information moving forward, and information personal privacy will be a crucial factor to consider in any prospective deal,” he stated.

FOX Organization’ Aislinn Murphy and Reuters added to this report.