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23andMe , the genetic testing giant once esteem in the zillion , is now pilot Chapter 11 failure and apprize meg of current and former client that they may be eligible to file claim as part of the restructuring process . The company and 11 of its subsidiaries , including Lemonaid Health and LPRXOne , filed for bankruptcy protectionon March 23 of this yr in the Eastern District of Missouri . Customers were alerted Sunday that they have until July 14 to file claims for loss incurred .
The bankruptcy follow a riotous 18 months for 23andMe , marked by worsen sale , executive director departures , and a withering datum breach that compromised sensitive personal information of almost 7 million drug user . The breach , publicly expose inOctober 2023 , exposed client ’ names , giving birth yr , relationship label , percentage of DNA share with relatives , origin report , and self - reported emplacement , concord to TechCrunch . The radioactive dust triggered multiple class action lawsuits and a wave of customer mistrust that severely undersell the company ’s consumer - facing commercial enterprise .
Now , client who were affected by that breach — specifically those notified by 23andMe that their information was compromise between May and October 2023 — may file what is known as aCyber Security Incident Claim . Those who hurt financial or other damages due to the breach can submit a title as part of the bankruptcy case . customer with other types of grievance unrelated to the cyberattack , such as outcome with DNA run results or the company ’s telehealth services , may submit a separate claim under theGeneral Bar Date Package .
Congress has alsoexpressed concerns about the privacy implicationsof the failure .
23andMe ’s gloam from grace of God was fleet , and its woes were compound by its ambitious but costly expansion into digital health and telemedicine , which included the$400 millionacquisition of Lemonaid Health in 2021 . in the beginning train at diversifying 23andMe ’s offering beyond consumer DNA examination , the moves strain 23andMe ’s fiscal imagination and failed to drive home the growth the company call for .
A purport $ 30 million settlement in a related category action lawsuit over the cyberattackremains on holddue to the failure proceeding . ( 23andMe ’s lawyer say the small town is in dispute now that the party is in bankruptcy . ) client who want to preserve their right to compensation must submit a formal proof of claim regardless of their participation in the social class action .
TechCrunch has reached out to 23andMe for comment .
