DNA testing company 23andMe has filed for Chapter 11 bankruptcy, including numerous layoffs and extensive data breaches in the following years. It plans to find buyers throughout the process and continue operations, with company CEO Anne Wojcicki resigning from bidding for an independent bidding company. The board’s special committee previously rejected Wojcicki’s proposal.
“We expect the court-supervised process will advance our efforts to address the operational and financial challenges we face, including further cost reductions and the resolution of legal and leasehold liabilities. We believe in the value of our people and our assets and hope that this process allows our mission of helping people access, understand and benefit from the human genome to live on for the benefit of customers and patients,” said Mark Jensen, chair and member of the Special Committee, in a release.
Jensen added that the company is committed to protecting customer data and “be transparent about the management of future user data, and data privacy will be an important consideration in any potential transaction.”
There was a time when 23andme was all the rage and everyone you knew would send their saliva samples. However, since the company went public, the situation has declined. It used to be worth $6 billion, but this month’s figure is less than $50 million. The company also fired more than 200 employees in the second half of last year.
However, the biggest hurdle was in 2023, when hackers visited information from 6.9 million customers – the violation began in April of that year, but 23andM3 noticed it five months later in September. The company announced that October leak. A year later, 23AndMe settled a lawsuit for $30 million after the company failed to tell the plaintiffs about claims, such as the company failed to tell the plaintiffs, targeting specifically targeting China or Ashkenaz Jewish legacy.
After the news, California Attorney General Rob Bonta recommended that 23AndMe customers delete their data in order to prevent it. You can find detailed information on how to do this here.
