A coalition of 27 U.S. states and the District of Columbia has filed a lawsuit in bankruptcy court aiming to prevent the sale of personal genetic data collected by 23andMe without the consent of individual users. The legal action comes amid efforts by a biotechnology firm to acquire the financially struggling company, which filed for Chapter 11 bankruptcy protection in the Eastern District of Missouri earlier this year.
According to Oregon Attorney General Dan Rayfield, the lawsuit argues that genetic samples, DNA profiles, health traits, and medical data are highly sensitive and cannot be sold without the explicit and informed consent of each customer. The complaint maintains that individuals must retain control over this type of deeply personal information.
Founded in 2006, 23andMe became well-known for offering saliva-based DNA test kits that provide insights into ancestry and help users discover relatives. The company has also engaged in health research and pharmaceutical development. However, it has faced financial challenges since going public in 2021, leading to significant layoffs and its recent bankruptcy filing.
A pharmaceutical company has offered to acquire 23andMe for $256 million. It stated that it would adhere to all current privacy policies and relevant laws, and that personal data would be handled in line with user consents, terms of service, privacy statements, and applicable notices. The company also assured that data security measures would be implemented. A court-appointed consumer privacy ombudsman has been tasked with reviewing the proposed acquisition and assessing potential
