California-based genetic testing supplier 23andMe has filed for Chapter 11 chapter and plans to promote its belongings following years of economic struggles.
23andMe has been offering direct-to-consumer DNA testing companies since November 2007 to clients who ship a saliva pattern and obtain a report on their ancestry and genetic predispositions. Since then, 23andMe has offered over 15 million DNA testing kits.
The corporate stated in a Sunday press launch that it’ll not change the way it shops, manages, or protects buyer information.
In a Monday submitting with the U.S. Securities and Change Fee (SEC), it additionally “filed a movement looking for authorization to pursue a structured sale of their belongings pursuant to a aggressive public sale and sale course of,” after rejecting a takeover bid from the CEO and co-founder Anne Wojcicki, who has since resigned to enter the gross sales course of as an “unbiased bidder.”
“As well as, we’re dedicated to persevering with to safeguard buyer information and being clear in regards to the administration of consumer information going ahead, and information privateness can be an essential consideration in any potential transaction,” stated Mark Jensen, 23andMe Chair of the Board of Administrators.
With the corporate’s belongings now up on the market to the best bidder, privateness consultants worry that every one the amassed DNA information might fall into the incorrect palms, probably exposing 23andMe clients’ genetic data regardless of the corporate’s assurances that this may not occur.
The Workplace of California’s Lawyer Common additionally reacted to the information and issued a shopper alert advising 23andMe clients to ask the corporate to delete their information, destroy their check samples, and revoke permission for his or her information for use for analysis.
This alert additionally supplies detailed steps on find out how to file these requests, together with logging into your account, going into Settings, clicking ‘View’ subsequent to “23andMe Information” (right here you even have the choice to obtain your information first), scrolling to “Delete Information,” and clicking “Completely Delete Information.” Subsequent, you should click on the hyperlink within the affirmation e mail that you’re going to obtain 23andMe.
At present, the UK’s Data Commissioner’s Workplace additionally stated that genetic data is among the many most delicate private information people share and warned that firms dealing with this information should observe strict safety and governance requirements below GDPR.
“We’re conscious that 23andMe has filed for Chapter 11 chapter within the US to facilitate a sale course of. We’re monitoring the scenario intently and are in touch with the corporate,” stated ICO Deputy Commissioner Stephen Bonner.
“As a matter of UK regulation, the protections and restrictions of the UK GDPR proceed to use and 23andMe stays below an obligation to guard the non-public data of its clients.”
In September 2024, 23andMe agreed to pay $30 million to settle a lawsuit over an information breach that had uncovered the info of 6.4 million clients in 2023. In January 2024, the corporate additionally confirmed that the attackers stole well being experiences and uncooked genotype information throughout 5 months of credential-stuffing assaults.
This 2023 information breach led to a number of class-action lawsuits, which prompted 23andMe—in a transfer broadly criticized by clients—to amend its Phrases of Use in November 2023 to make it more durable to sue the corporate. Nevertheless, 23andMe claimed that the modifications aimed to simplify the arbitration course of.
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