The genetic testing company, 23andMe, once valued at $6 billion, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri.
The company, known for its DNA test kits, notified millions of its 15 million customers on May 11 that they have until July 14, 2025, to file claims for losses, particularly those tied to a 2023 data breach that exposed sensitive information of nearly 7 million users.
The bankruptcy follows a rough period for 23andMe, marked by a 2023 cyberattack that compromised names, birth years, ancestry reports, and DNA relationship data from May to October 2023.
Customers notified of this breach can file a Cyber Security Incident Claim for financial or other damages. Those with unrelated grievances, like issues with DNA results or telehealth services, can submit a General Bar Date Claim.
A proposed $30 million class-action settlement over the breach is on hold due to the bankruptcy, but filing a claim preserves customers’ rights to potential compensation.
23andMe’s struggles stem from declining kit sales, a costly $400 million acquisition of Lemonaid Health in 2021, and failure to profit after going public in 2021. The company, which laid off 40% of its staff in 2024, is now seeking a buyer to maximize its value while continuing operations.
Co-founder Anne Wojcicki resigned as CEO to bid for the company, raising questions about the future of its genetic database.
Those who often use 23andMe to explore ancestry, the bankruptcy sparks concerns about data privacy. Posts on X reflect urgency, with users like @MarioNawfal highlighting the breach’s scale and @TaraBull808 urging data deletion.
California’s Attorney General has advised deleting accounts and destroying saliva samples, as genetic data could be sold in the bankruptcy process. Customers can delete data via account settings, though 23andMe may retain some information for legal compliance.
The case underscores the risks of sharing DNA, a concern for everyone valuing family privacy. As the July 14 deadline looms, customers must decide whether to file claims or secure their data, weighing 23andMe’s mission against its uncertain future.
