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Home»Economy & Business»States problem bankrupt 23andMe’s proper to public sale genetic data
Economy & Business

States problem bankrupt 23andMe’s proper to public sale genetic data

AdminBy AdminJune 11, 2025No Comments4 Mins Read
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States challenge bankrupt 23andMe's right to auction genetic information
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Rep. James Comer, R-Ky., on 23andMe information privateness issues, his invitation for sanctuary governors to testify earlier than lawmakers and whether or not NPR and PBS ought to have funding stripped.

Bankrupt 23andMe is dealing with a lawsuit over its plans to promote buyer genetic data.

Twenty-seven states and the District of Columbia took authorized motion this week in opposition to 23andMe within the U.S. Chapter Court docket for the Jap District of Missouri, the courtroom overseeing the Chapter 11 chapter proceedings that the genetic testing firm entered earlier within the 12 months. 

23ANDME FILES FOR BANKRUPTCY AS CALIFORNIA AG URGES CUSTOMERS TO DELETE DATA

The states contend 23andMe has “no proper to promote their clients’ genetic identities to the very best bidder” except the corporate “first acquire[s] categorical knowledgeable consent to the proposed transaction/switch by every shopper impacted.” 

An organization consultant reveals off what’s in a DNA equipment on the 23andMe sales space on the RootsTech annual genealogical occasion in Salt Lake Metropolis, Utah, Feb. 28, 2019. (George Frey / Reuters)

They need the chapter courtroom to rule on “whether or not and to what extent” the genetic testing firm can “promote and switch to a 3rd occasion such intimate buyer information with out first acquiring the categorical knowledgeable consent of its clients,” in accordance with the submitting.

Within the submitting, the states mentioned they have been “not objectively against any sale” however “contend that categorical, knowledgeable consent by every buyer is critical earlier than any switch of that buyer’s information can happen.”

The attorneys basic that filed the lawsuit symbolize Arizona, Colorado, Connecticut, the District of Columbia, Florida, Illinois, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Missouri, New Hampshire, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin.

23ANDME PROBE LAUNCHED TO PREVENT CUSTOMER DNA DATA FROM BEING SOLD TO CHINA OR OTHER BAD ACTORS

“23andMe can’t public sale tens of millions of individuals’s private genetic data with out their consent,” New York Legal professional Common Letitia James mentioned in a press release. “New Yorkers and plenty of others across the nation trusted 23andMe with their non-public data, they usually have a proper to know what might be achieved with their data.” 

23andMe DNA Testing

The non-public genomics firm 23andMe in Mountain View, California, Oct. 28, 2018. (Smith Assortment/Gado / Getty Pictures)

A spokesperson for 23andMe informed FOX Enterprise that the arguments made by the attorneys basic within the go well with have been “with out benefit.” 

“The sale is permitted below 23andMe privateness insurance policies and relevant regulation,” the spokesperson mentioned. “We required any bidder to undertake our insurance policies and adjust to relevant regulation as a situation to taking part in our gross sales course of. Prospects will proceed to have the identical rights and protections within the arms of the successful bidder.” 

The remaining bidders, Regeneron Prescription drugs and TTAM Analysis Institute, “have dedicated to abide by 23andMe privateness insurance policies, and can proceed to function 23andMe because it has all the time been operated,” in accordance with the 23andMe spokesperson. 

23and me headquarters

A pedestrian walks by the 23andMe headquarters on Feb. 1, 2024, in Sunnyvale, California. (Justin Sullivan / Getty Pictures)

In Could, New York-based Regeneron introduced it had been named the profitable bidder within the public sale for “considerably all” of 23andMe’s property with a $256 million bid. 

23ANDME BANKRUPTCY: WILL YOUR PRIVATE DATA BE PROTECTED?

23andMe subsequently acquired a $305 million bid from Anne Wojcicki-founded TTAM Analysis Institute, setting the stage for one more public sale. 

The genetic testing firm entered Chapter 11 chapter in March to facilitate a sale of its enterprise. In its chapter petition, the corporate had estimated a spread of $100 million to $500 million for its property, with estimated liabilities in the identical vary. 

23andMe was initially based in 2006.

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