23andMe to pay $6 million to settle allegations it mishandled customers' genetic data

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Set us as preferred Chrome Holding Co., formerly known as 23andMe, is set to pay $6 million to the state of California to settle allegations that it failed to protect customers’ genetic data and sold that data without consent during its bankruptcy process.The settlement was filed this week in the U.S.

Bankruptcy Court in the Eastern District of Missouri and is pending court approval.It resolves two separate lawsuits — one related to a 2023 data breach that affected nearly 7 million 23andMe customers, and another concerning the 2025 sale of genetic data and biological samples following the company’s bankruptcy.

“Companies cannot evade California’s consumer protection and privacy laws by filing for bankruptcy,” California Atty.Gen.

Rob Bonta said in a statement.“I am proud to fight for the privacy rights of Californians and to deliver this settlement for consumers who put their trust in 23andMe.” Business The direct-to-consumer DNA testing service 23andMe filed for bankruptcy earlier this month, putting millions of customers’ genetic information up for sale.Co-founded by Anne Wojcicki in 2006, 23andMe popularized at-home genetic testing, allowing customers to send in a saliva sample and receive a DNA analysis.

The Mountain View company attracted celebrity attention and spawned a cottage industry of ancestry hunters and true crime sleuths.After it went public in 2021, 23andMe was briefly valued at $6 billion.However, the business never turned a profit, failed to attract repeat customers and fell victim to internal squabbles.

Last March, it filed for Chapter 11 bankruptcy and was sold to TTAM Research Institute, a nonprofit founded by Wojcicki and based in Palo Alto.The sale raised concerns that sensitive genetic data could fall into the wrong hands.The California Department of Justice tried to block the s...