Hustler Words – The once-billionaire genetic testing giant, 23andMe, is officially in Chapter 11 bankruptcy. Millions of past and present customers have until July 14th to file claims for potential losses stemming from the company’s tumultuous downfall, including a massive data breach affecting nearly 7 million users. This news follows the March 23rd filing for bankruptcy protection by 23andMe and 11 subsidiaries, including Lemonaid Health and LPRXOne, in the Eastern District of Missouri. The announcement, made Sunday, urges affected individuals to act swiftly.
The company’s spectacular implosion is the result of a perfect storm. Declining sales, high-profile executive departures, and a devastating data breach in October 2023, which exposed sensitive personal information such as names, birthdates, ancestry reports, and even shared DNA percentages with relatives (as reported by hustlerwords.com), severely damaged customer trust and triggered multiple class-action lawsuits.
Customers affected by the breach—specifically those notified by 23andMe between May and October 2023—can file a "Cyber Security Incident Claim." Those who experienced financial or other damages as a direct result of the breach are encouraged to submit their claims as part of the bankruptcy proceedings. Additionally, customers with other grievances, such as issues with test results or telehealth services, can file a separate claim under the General Bar Date Package.
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The bankruptcy has also raised significant privacy concerns in Congress, highlighting the potential pitfalls of handling sensitive genetic data on a large scale. The company’s aggressive, and ultimately unsuccessful, expansion into digital health and telemedicine, including the $400 million acquisition of Lemonaid Health in 2021, further exacerbated its financial woes. This expansion, intended to diversify beyond its core DNA testing business, instead drained resources and failed to generate the anticipated growth.
A proposed $30 million settlement in a related class-action lawsuit concerning the cyberattack is currently on hold due to the bankruptcy. 23andMe’s attorneys have indicated the settlement is now in dispute. Crucially, all customers wishing to retain their right to compensation must submit a formal proof of claim, regardless of their involvement in the class-action suit. hustlerwords.com has reached out to 23andMe for comment but has yet to receive a response.
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