Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, raising alarms about the security of millions of customers’ DNA data. The company’s collapse comes amid recent security breaches and leadership changes that have left many questioning what will happen to their genetic information.
At a glance:
• 23andMe filed for Chapter 11 bankruptcy protection to facilitate a $50 million sale of the company
• Co-Founder Anne Wojcicki resigned as CEO but plans to pursue acquiring the company as an independent bidder
• California Attorney General Rob Bonta issued a consumer alert urging customers to consider deleting their genetic data
• The company recently settled a $30 million lawsuit related to a data breach affecting 6.9 million customers
• 23andMe insists there are “no changes to how customer data is stored, managed, or protected” during bankruptcy proceedings
Privacy Concerns Mount As Company Collapses
The genetic testing giant that once promised to unlock the secrets of your ancestry and health is now facing financial ruin, with assets and liabilities estimated between $100 million and $500 million. The bankruptcy filing comes after the company cut 40% of its workforce last November in a desperate attempt to stay afloat.
California Attorney General Rob Bonta issued an urgent warning to consumers about the “trove of sensitive consumer data 23andMe has amassed.”
The company’s data security record has been questionable at best, with a recent $30 million settlement for a breach that exposed the personal information of nearly 7 million customers. That security failure has added yet more concern about how DNA data will be protected during bankruptcy proceedings.
Leadership Shakeup Adds To Uncertainty
In a surprising move, Co-Founder and CEO Anne Wojcicki announced her resignation just before the bankruptcy filing. Her stated reason was “so I can be in the best position to pursue the company as an independent bidder,” essentially leaving the sinking ship to potentially buy it at a discount.
CFO Joe Selsavage has taken over as interim CEO while the company secures $35 million in emergency financing. This leadership vacuum at a critical moment has done little to reassure customers.
The bankruptcy proceedings are taking place in the US Bankruptcy Court for the Eastern District of Missouri, and 23andMe insists it will continue operating during the process. It said it will ensure there are “no changes to how customer data is stored, managed, or protected.”
How To Protect Your Genetic Data
Under California’s Genetic Information Privacy Act and Consumer Protection Act, customers have the right to request deletion of their genetic data and test samples. These legal protections exist to give Americans tools to safeguard their most personal information during a chaotic corporate collapse.
Customers concerned about their data can delete their account by logging in, accessing settings, downloading any data they wish to keep, and confirming deletion via email. Additionally, stored saliva samples and DNA can be destroyed by changing preferences in account settings.
The bankruptcy filing marks a stunning downfall for a company once valued at billions of dollars. While 23andMe promises to maintain data integrity during the bankruptcy process, many people remain skeptical.
