US states file suit against 23andMe sale

The sale of genetic analysis company 23andMe may be entering its second round after founder and former CEO Anne Wojcicki submitted a new offer for her former company. A lawsuit brings further uncertainty to the sale.

27 US states and the District of Columbia have filed a lawsuit against the company with the bankruptcy court in Missouri. The plaintiffs want to ensure that the genetic data of 23andMe's approximately 15 million customers cannot be sold without their knowledge or consent. According to the plaintiffs, if not every customer gives consent, then it is possible that the information may not be sold.

The plaintiffs argue that data such as genetic material, biological samples, medical records and other health data is very private and therefore worthy of protection. The court should decide whether the debtor 23andMe is entitled to sell this data and hand it over to any buyer "without first obtaining the express and informed consent of each customer", according to the statement of claim.

"This is not just data – it is your DNA. It's personal, permanent and deeply private," said Oregon Attorney General Dan Rayfield. "When people submitted their personal data to 23andMe, they didn't think their genetic blueprint would later be sold to the highest bidder."

23andMe considers the sale permissible

23andMe considers the lawsuit to be unfounded. The sale is permissible under applicable law and data protection guidelines, according to a statement from the company obtained by the New York Times. "Customers will continue to have the same rights and protections with the winning bidder."

23andMe was founded in 2006 by Wojcicki, then wife of Google founder Sergey Brin, Linda Avey and Paul Cusenza. The company analyzes DNA samples from its customers to determine their predisposition to certain diseases or characteristics, as well as their ancestry. This spring, the company filed for bankruptcy. This was the late consequence of a data leak in the fall of 2023, when criminals captured DNA data from almost seven million customers and offered it for sale on the darknet. A class action lawsuit ended in a settlement.

Thereafter, 23andMe lost value and its share price fell by 75 percent in 2024. In the end, the company was insolvent and was auctioned off. The bid was accepted in May by the US biotechnology company Regeneron, which offered USD 256 million for 23andMe's core business. Last week, however, it was announced that there will be another round of bidding. Wojcicki and the research organization she founded, TTAM, want to submit a new bid to buy 23andMe.

(wpl)