Bankrupt 23andMe’s DNA Data Gets Nod for Sale as Concerns Linger

Key Points

  • 23andMe Holding Co. (ME) has been granted permission to sell customer medical and ancestry data, raising privacy concerns.
  • The sale process has been slowed by two weeks to accommodate the judge's schedule and allow creditors to weigh in.
  • The company has not been profitable since going public in 2021, and its genetic data is now its most valuable asset.
  • A privacy ombudsman might be appointed to oversee the sale of sensitive customer information.
  • The company faces legal troubles from a 2023 data breach affecting millions of customers.

Summary

Bankrupt genetic testing firm 23andMe has been allowed by a judge to auction off its customers' medical and ancestry data, which is considered its most valuable asset amidst its financial collapse. This decision has sparked significant privacy and safety concerns among customers and stakeholders. The sale process, initially set with tight deadlines, was extended by two weeks to accommodate the judge's schedule and give creditors a chance to respond. Despite collecting DNA from over 15 million customers, 23andMe has struggled with profitability since its public debut in 2021. The potential sale of this sensitive data has led to calls for a privacy ombudsman to oversee the process, ensuring customer data protection. Additionally, the company is dealing with legal issues stemming from a 2023 data breach that compromised the information of millions of users. The case, being the first "mega" bankruptcy for Judge Brian C. Walsh, is set to return to court for final approval of funding and further proceedings.

yahoo
March 26, 2025
Stocks
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