23andMe Files for Chapter 11 Bankruptcy Protection
California-based genetic testing company, 23andMe, has filed for Chapter 11 bankruptcy to facilitate a potential sale amidst ongoing financial challenges.
Company Overview and Recent Developments
23andMe, renowned for its at-home genetic testing kits that provide insights into ancestry and personal traits, has faced significant hurdles since going public in 2021. The company has struggled to establish a sustainable business model, largely due to customers typically requiring only a single purchase of their saliva-based testing kits.
In its most recent fiscal year, 23andMe reported a staggering net loss of $667 million, a considerable increase from the previous year’s loss of $312 million. To address its financial difficulties, the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Missouri.
Leadership Changes
In a notable change, co-founder and CEO Anne Wojcicki announced her resignation shortly after the bankruptcy filing. Wojcicki stated her intention to pursue the company as an independent bidder, aiming to capitalize on the ongoing sale process.
Customer Concerns and Data Privacy
Amid these developments, customers have raised concerns regarding the future of their sensitive genetic information. In response, California Attorney General Rob Bonta issued an alert, informing 23andMe customers of their rights under the Genetic Information Privacy Act (GIPA) and the California Consumer Privacy Act (CCPA). These regulations grant individuals the ability to delete their genetic data upon request.
In an official statement, 23andMe reassured customers that there would be no changes in how the company manages or safeguards customer data during the bankruptcy proceedings.
Commitment to Data Protection
Mark Jensen, chair of 23andMe’s Special Committee of the Board of Directors, expressed the company’s commitment to data privacy, stating that protecting consumer data will be a priority in any potential transaction. The emphasis on transparency and security aims to assure customers that their data remains safe.
Steps for Data Deletion
For customers who wish to delete their information, the following steps can be followed:
- Log into your 23andMe account on the website.
- Select the “Settings” option in your profile.
- Scroll to the “23andMe Data” section located at the page’s bottom.
- Click “View” next to “23andMe Data.”
- For those wishing to save their data, select the option to download it to your device.
- Navigate to the “Delete Data” section.
- Click “Permanently Delete Data.”
- Confirm your request by following the link in the confirmation email sent by 23andMe.