NEW YORK ATTORNEY GENERAL URGES 23ANDME USERS TO DELETE DATA – 23andMe files for bankruptcy sparking fears over sale of DNA data
New York Attorney General Letitia James urged 23andMe customers to secure their data in light of rising privacy concerns after the DNA testing firm filed for bankruptcy amid declining demand for its services.
Uncertainty surrounding the company’s future and worries about potential data management by a new owner drove users to delete their accounts as a final privacy safeguard, with many taking to social media to share detailed instructions.
Shares of 23andMe, which filed for bankruptcy on Sunday, closed 11% lower at 65 cents. The stock declined 59% on Monday.
The company’s saliva-based tests provide information on a user’s ancestry and whether they might be at genetic risk for certain diseases.
23andMe has made at least 30 deals with companies including British drugmaker GSK, allowing them to access its database. Most of its agreements remain undisclosed.
23andMe’s genetic database has over 15 million customers.
23andMe has said the bankruptcy process will not affect how it stores, manages or protects customer data. It also said any buyer would be required to comply with applicable law on how customer data is treated.
It was reported last year that 23andMe would pay $30 million and provide three years of security monitoring to settle a lawsuit accusing it of failing to protect the privacy of 6.9 million customers, whose personal information was exposed in a 2023 data breach.
However, 23andMe said in January that the settlement was not unconditionally approved by the United States District Court for the Northern District of California.
