- 23andMe users are being advised to delete their data as the company files for bankruptcy. The California attorney general issued a consumer alert urging users of the biotech company to consider asking the company to delete their data and destroy any samples of genetic material.
California attorney general Rob Bonta is urging 23andMe users to ask the company to delete their data and destroy any samples of genetic material as it files for bankruptcy.
The biotech company said on Sunday it had started voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Eastern District of Missouri. It is operating as usual throughout the sale process.
On Friday, when rumors of 23andMe’s plans started to circulate, Bonta issued a consumer alert reminding users of their right to request the biotech company to delete their genetic information under the Genetic Information Privacy Act (GIPA) and California Consumer Protection Act (CCPA).
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” Bonta said in a statement. “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”
Users can request that 23andMe delete their genetic data in the “settings” section of their profile under “23andMe Data” at the bottom of the page. Users can also download a copy of their genetic data for personal storage.
If users previously opted to have a saliva sample and DNA stored by 23andMe, they can change that under the “Preferences” section.
Representatives for 23andMe said in an open letter to customers that their data remains protected.
“The Chapter 11 filing does not change how we store, manage, or protect customer data,” the company said. “Any buyer of 23andMe will be required to comply with applicable law with respect to the treatment of customer data.”
23andMe’s fall from grace
23andMe has had a tumultuous few years.
The company is still grappling with the aftermath of a massive 2023 data breach that compromised the information of nearly 7 million people—around half of its customer base. As many of its 15 million users rush to remove their genetic data from company records, revenue has continued to decline.
In November, the company laid off 200 employees—around 40% of its workforce—and halted the development of all its therapies.
The company’s CEO and cofounder, Anne Wojcicki, also announced she was stepping down over the weekend. She will be temporarily replaced by the company’s chief financial officer, Joe Selsavage, but will remain on the 23andMe board.
Wojcicki had been advocating for a buyout since April of last year, but the company’s board rejected the proposal.
In late February, Wojcicki teamed up with New Mountain Capital, a venture capital firm, to propose buying out the struggling company’s shareholders at $2.53 per share, valuing the company at $74.7 million. Just four years ago, the biotech firm was worth $6 billion.
In a post on X, Wojcicki said she was “disappointed” the company had filed for bankruptcy.
“While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder,” she wrote.
“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics,” she added.
