23and, the genetic test giant once valued in the billions of rands, is now navigating bankruptcy in chapter 11 and notice of millions of current and former clients that they may be eligible to submit claims as part of the restructuring process. The company and 11 of its subsidiaries, including Lemonaid Health and Lprxone, applied for bankruptcy protection on March 23 this year in the Eastern District of Missouri. Customers were warned on Sunday that they had until July 14 to file claims for losses incurred.
The bankruptcy follows a turbulent 18 months for 23andme, characterized by falling sales, executive rooms and a devastating data offense that jeopardized the sensitive personal information of nearly 7 million users. The offense, publicly disclosed in October 2023According to the names of clients, birth years, relationship labels, Percentage DNA shared with family members, ancestors and self-reported locations, according to TechCrunch. The fallout has caused several class action lawsuits and a wave of no confidence in customers that severely undermine the company’s consumer business.
Now, customers affected by the offense – specifically those informed by 23andme that their information was compromised between May and October 2023 – which is known as a Cyber Security Incident Claims. Those who have suffered financial or other damages due to the offense can file a claim as part of the bankruptcy case. Customers with other types of grievances unrelated to the cyber attack, such as problems with DNA test results or the company’s Telehealth services, can submit a separate claim under the General bar dating package.
The congress also expressed concern about the privacy implications of the bankruptcy.
23andme’s fall of Grace was fast, and his misery was composed by his ambitious but expensive extension to digital health and telemedicine, which included the $ 400 million The acquisition of Lemonaid Health in 2021. Originally aimed at diversifying 23and’s offers above the DNA testing of the consumer, the movements’ financial resources stretched and could not produce the growth the company needed.
A proposed settlement of $ 30 million in a related class action over the cyber attack Stay on the wait Due to the bankruptcy proceedings. (The attorneys of 23andme say the settlement is in a dispute now that the company is in bankruptcy.) Customers who want to keep their right to compensation must submit a formal proof of claim, regardless of their participation in the class action.
TechCrunch reached out to 23andme for comment.
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