23andMe Files for Chapter 11 Bankruptcy Amid Financial Struggles

The genetic testing company 23andMe has initiated Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of Missouri. This move is aimed at facilitating a sale to maximize the company’s value as it faces ongoing financial challenges.

CEO Resignation and Company Operations

Co-founder and CEO Anne Wojcicki announced her resignation shortly before the bankruptcy filing. She stated her intention to position herself as an independent bidder for the company. Despite the bankruptcy process, 23andMe has reassured customers that business operations will continue as usual during this transition.

The Company’s Financial Background

Since becoming publicly traded in 2021, 23andMe has encountered significant difficulties in developing a sustainable business model. The company noted a considerable financial downturn, reporting a net loss of $667 million during the last fiscal year, a sharp increase from the previous year’s loss of $312 million.

Concerns Over Customer Data Privacy

The announcement of bankruptcy has raised alarm among customers regarding the safety of their genetic information. In response, California Attorney General Rob Bonta issued a consumer alert, reminding 23andMe users of their rights under the Genetic Information Privacy Act (GIPA) and the California Consumer Privacy Act (CCPA). These laws allow them to direct the deletion of their genetic data.

23andMe’s Commitment to Data Safeguarding

Mark Jensen, head of 23andMe’s Special Committee of the Board of Directors, expressed the company’s ongoing commitment to protecting customer data. He stated, “The company is committed to continuing to safeguard customer data and being transparent about the management of user data going forward.”

Steps to Delete 23andMe Data

Customers who wish to delete their personal information from 23andMe can follow these steps:

1. Log into your 23andMe account on their website.
2. Navigate to the “Settings” section of your profile.
3. Scroll to the “23andMe Data” section located at the bottom of the page.
4. Click “View” next to “23andMe Data.”
5. Optional: Download your genetic data for personal storage if desired.
6. Find the “Delete Data” section and click “Permanently Delete Data.”
7. Confirm your request by following the link in the email you receive from 23andMe.

Conclusion

As 23andMe navigates this challenging period, customers should stay informed about their rights and data privacy issues. The company’s commitment to maintaining data integrity remains paramount, even as it undergoes significant organizational changes.