“There are serious privacy risks associated with genetic data, as has been underscored by the 23andme bankruptcy. Although California residents can benefit from the robust privacy protections, This highlights the need for stronger legal safeguards to protect biometric data from being treated as a mere asset in bankruptcies.” – Shruti Gurudanti, Rose Law Group partner and director of corporate transactions
By Tracy Brown Hamilton | Fast Company
DNA testing firm 23andMe has filed for Chapter 11 bankruptcy protection.
The once high-flying San Francisco company—which provides DNA analysis to offer insights into ancestry, health traits, and genetic risks—is aiming to sell itself after facing significant challenges, including rejected acquisition offers and declining market value in the wake of a 2023 data breach that impacted millions of users.
In addition, CEO Anne Wojcicki has stepped down, and CFO Joe Selsavage will serve as interim CEO during the restructuring process, 23andMe said on Sunday. The company plans to continue operating as it seeks a buyer.
The bankruptcy filing punctuates a stunning downfall for what was once one of Silicon Valley’s buzziest companies. It follows a long series of setbacks for 23andMe, including mass layoffs and restructuring efforts.
