23andme, the genetic test giant that is once appreciated in billions, now navigates bankruptcy through Chapter 11 and reports millions of current and former customers that they can be eligible to submit claims as part of the restructuring process. The company and 11 of his subsidiaries, including Lemonoid Health and LPRXONE, presented bankruptcy protection in the eastern district of Missouri on 23 March of this year. Clients were warned on Sunday that they have until July 14 to submit claims for losing suffered.
The bankruptcy follows a tumultuous 18 months before 23andme, characterized by falling sales, executive departure and a devastating data breach that jeopardized sensitive personal information from nearly 7 million users. The infringement, publicly announced in October 2023exposed names of customers, birth years, relationship labels, percentages of DNA shared with family members, ancestors reports and self -reported locations, according to Techcrunch. The Fallout has activated several Class Action rights and a wave of distrust that seriously undermine the distrust of customers who seriously undermine the consumer-oriented activities of the company.
Now customers who were affected by that infringement – in particular those who were affected by 23andme that their information was affected between May and October 2023 – which is known as a Cyber Security Incident Claim. Those who have suffered financial or other damage because of the infringement can submit a claim as part of the bankruptcy case. Customers with other types of complaints that are not related to the cyber attack, such as problems with DNA test results or the telehealth services of the company, can submit a separate claim under the General bar Date package.
The congress has also expressed concern about the privacy implications of the bankruptcy.
23andme’s Fall From Grace was fast, and the misery was worsened by his ambitious but expensive expansion to digital health and telegenia, including the $ 400 million Acquisition of Lemonoid Health in 2021. Originally aimed at diversifying 23and’s offer after DNA tests from consumers, tensioning the movements 23andme’s financial resources and failed to supply the growth that the company needed.
A proposed settlement of $ 30 million in a related Class Action right case compared to the cyber attack Stays on hold Due to the bankruptcy procedure. (The lawyers of 23andMe say that the scheme is in the event that the company is bankrupt.) Customers who want to retain their right to compensation must submit a formal proof of claim, regardless of their participation in the Class Action.
Techcrunch has reached 23andme for comment.
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