23andMe Faces Legal Challenges Amid Bankruptcy
Remember 23andMe? It’s the company known for providing customers with DNA testing kits to help them trace their ancestry. Founded in 2006, the firm also ventured into health research and drug development. Unfortunately, it has struggled to find a sustainable business model. In March, it filed for Chapter 11 bankruptcy protection, raising concerns about the safety of customer data.
Recently, 27 states and the District of Columbia filed a lawsuit in bankruptcy court. They aim to block any sale of the company’s vast genetic data archive without getting explicit consent from customers. This lawsuit arises as a biotechnology company seeks court approval to purchase 23andMe.
If you’ve used 23andMe, you might be worried about the security of your genetic information. Thankfully, there are steps you can take to protect your data.
The Situation with 23andMe
23andMe filed for Chapter 11 bankruptcy protection in March, leading to the resignation of co-founder Anne Wojcicki, who also served as CEO. The San Francisco-based firm intends to sell most of its assets through a court-sanctioned reorganization plan. Wojcicki plans to bid for the company as it looks for new ownership. According to her statement, stepping down as CEO puts her in a better position as an independent bidder.
The firm is aiming to reduce its physical footprint by cutting lease contracts in San Francisco and Sunnyvale, California, while still operating during this difficult period.
Is My DNA Data Safe?
In a recent communication, 23andMe assured customers that their privacy is a key consideration during this transition. Any potential buyer will need to comply with applicable laws protecting customer data. However, experts remind us that current laws are limited. The United States lacks a federal privacy law, with only about 20 states having their own rules.
Furthermore, the turmoil from bankruptcy could reduce the workforce, making it harder to guard against cyber threats. In 2023, an incident exposed the genetic data of nearly 7 million customers at 23andMe, resulting in a $30 million settlement due to inadequate data protection.
DNA data is particularly sensitive and valuable. Unlike an email address, which can be easily replaced if compromised, genetic information is unique and irreplaceable.
While 23andMe claims it doesn’t share information with health insurance companies or employers without customer consent, there are still concerns. For instance, customer data could be used for targeted advertising without the user’s knowledge.
How to Delete Your Data from 23andMe
California’s Attorney General Rob Bonta previously issued an urgent consumer alert regarding 23andMe’s financial troubles. He reminded customers of their right to have their data deleted.
If you wish to delete your data, you can log in to your 23andMe account, navigate to “settings,” and find the “23andMe Data” section. Here, you can view and download your data before permanently deleting it. You will receive a confirmation email, which you need to respond to in order to finalize the deletion.
Additionally, you can request the destruction of your saliva sample and DNA by accessing your account settings. You also have the option to withdraw consent from third-party researchers for the use of your genetic data.
In these uncertain times, it’s crucial for customers to stay informed and take action if they wish to protect their personal information.


