US judge won't block 23andMe bankruptcy sale to co-founder
U.S. District Judge Matthew Schelp in St. Louis, Missouri, during a hearing said he would not pause the $305 million sale while he reviews the state's bid for a declaration that 23andMe cannot sell California customers' genetic data without their consent.
A bankruptcy judge rejected those claims on Monday, and California had appealed that ruling to Schelp, who on Tuesday had briefly paused the sale ahead of Thursday's hearing. 23andMe, which filed for bankruptcy in March, is selling its assets to TTAM Research, a new nonprofit founded by Wojcicki.
Schelp during the hearing said it was reasonable for U.S. Bankruptcy Judge Brian Walsh to conclude that California customers would not be harmed because they can opt to delete their accounts and genetic information.
'A stay pending appeal threatens to derail the TTAM sale altogether, and creditors and shareholders would likely suffer,' the judge said.
Schelp extended the temporary stay until 11:59 p.m. on Friday to give California time to seek a stay from the St. Louis-based 8th U.S. Circuit Court of Appeals.
23andMe, TTAM and the office of California Attorney General Rob Bonta did not immediately respond to requests for comment.
California argues the sale violates the state's Genetic Information Privacy Act, which prohibits the transfer and disclosure of genetic data or biological samples to third parties without express permission for each transfer.
The state had sought to prevent California customers' data from being transferred, a step that 23andMe said would effectively kill the sale. California consumers represent about 1.8 million of the approximately 10 million genetic profiles in 23andMe's inventory, according to court filings.
Walsh, the bankruptcy judge, on Monday overruled California's objections. Other states had also made similar objections to the sale.
On Thursday, Bernard Eskandari of the California Attorney General's office told Schelp that the state would have investigated and brought an enforcement action against a company that sold genetic information without consent outside of bankruptcy. And 23andMe customers cannot now be stripped of those protections, he said.
'Bankruptcy is not a hall pass to evade state law,' he said.
But Jeff Recher, a lawyer for the company, countered that California's genetic privacy law only regulates the transfer of data and not the sale of equity.
'This is not a transfer of genetic information, it's a sale of an ownership interest," he said.
Schelp at the end of the hearing agreed the state law does not apply to sales of ownership and said that California likely lacked standing to challenge the sale.
TTAM has said it would continue to protect customers' genetic data and maintain 23andMe's privacy policies, including customers' right to delete their data.
Wojcicki was 23andMe's CEO before its bankruptcy filing, and her new nonprofit's name is an acronym formed from the first letters of the words 'twenty-three and me.'
TTAM won a bankruptcy auction for 23andMe's assets in June, outbidding a $265 million offer from Regeneron Pharmaceuticals (REGN.O).
23andMe filed for bankruptcy after a drop-off in consumer demand and a 2023 data breach that exposed millions of customers' genetic data.
The case is California v. 23andMe Holding Co., U.S. District Court for the Eastern District of Missouri, No. 25-cv-00999.
For California: Bernard Eskandari and Daniel Nadal of the Office of the Attorney General of California
For 23andMe: Jeff Recher, Chris Hopkins and Paul Basta of Paul, Weiss, Rifkind, Wharton & Garrison
For TTAM: Joe Larkin of Skadden Arps Slate Meagher & Flom
Read more:
Judge briefly pauses 23andMe bankruptcy sale amid California's appeal
California fails to stop 23andMe founder from re-acquiring company
23andMe's founder Anne Wojcicki wins bid for bankrupt DNA testing firm
DNA testing firm 23andMe files for bankruptcy as demand dries up
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
25 minutes ago
- Daily Mail
How Trump's groundbreaking crypto bill will affect Americans
Advertisement After a frantic back-and-forth over the nation's most significant crypto legislation to-date President Donald Trump got Republicans in line to pass a first-of-its-kind law. The House OK'd the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and the The Digital Asset Market Clarity (CLARITY) Act on Thursday, both with bipartisan support. The GENIUS Act will create a regulatory framework for stablecoin payments. Stablecoins are cryptocurrencies that are backed 1:1 with an asset, like a U.S. dollar or European euro. The global stablecoin industry has exploded in recent years, reaching a total market size of roughly $250 billion, up from $130 billion just two years ago. The measure provides rules for stablecoin issuers, including mandates that require audits and that the firm can back the assets they give to customers. Stablecoins have become a major player in the world of digital finance, but, until now, the rules have been unclear. The GENIUS Act aims to bring more trust and stability to the industry, ensuring that companies behind these 'digital dollars' are held accountable for managing people's money safely and transparently. 'This piece of legislation is going to make America the crypto capital of the world, and that's what the president promised,' Press Secretary Karoline Leavitt said at Thursday's briefing. The 79-year-old president has been a loud advocate for the budding industry, he even spoke at the Bitcoin Conference 2024 and named an ' AI Czar,' David Sacks, to lead a White House team focused on the digital asset class. President Trump is expected to sign the GENIUS Act during a White House ceremony on Friday. These reforms are thought to improve trust in the stablecoin market. For example, Tether, an El Salvador-based crypto firm that is the largest stablecoin issuer globally, has been accused of not backing up its assets 1:1. The GENIUS Act would mean that stablecoins in U.S. markets need to show receipts. Last year the president co-founded his own digital asset company, World Liberty Financial, with his sons Donald Trump Jr., Eric and Barron. The firm is directly involved in various projects, and notably issues its own stablecoin called 'USD1,' according to the company's site. The CLARITY Act passed on Thursday is a market structure bill which aims to provide clear rules for crypto markets by giving oversight to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under Biden, crypto companies that were subject to SEC enforcement actions complained that former SEC Chair Gary Gensler did not create clear industry guidelines. The CLARITY Act will be taken up by the Senate later this year. In addition to the landmark crypto legislation, the president is also interested in cutting taxes for crypto. The White House indicated Thursday the president supports exempting small cryptocurrency purchases from taxes, aiming to make using cypto for everyday payments - like buying a cup of coffee - more practical. 'Of course, right now, that cannot happen, but with the de minimis exemption, perhaps it could in the future,' Leavitt said. Senator Cynthia Lummis (pictured) is leading an effort to pass a bill that would set a $300 threshold for untaxed crypto transactions, allowing purchases under $300, up to $5,000 per year, to be made without triggering taxes. The bill also aims to eliminate double taxation for crypto miners and stakers, provide equal tax treatment for digital assets compared with traditional investments, and clarify how lending digital assets is taxed.
Reuters
25 minutes ago
- Reuters
Chevron to proceed with Hess takeover after winning Exxon Guyana legal battle
HOUSTON, July 18 (Reuters) - Chevron (CVX.N), opens new tab will proceed with its $53 billion acquisition of Hess (HES.N), opens new tab, after it prevailed in a landmark legal battle against larger rival Exxon Mobil (XOM.N), opens new tab to gain access to the largest oil discovery in decades. It is vindication for CEO Mike Wirth's strategy and a critical win since Hess' most attractive asset is its stake in the prolific Stabroek Block off the coast of Guyana, which holds more than 11 billion barrels of oil, a source of growth as Chevron works to turn around its lagging performance. Shares of Chevron rose 3.6% in premarket trading, while those of Hess jumped 7.4%. Exxon shares were marginally lower. "We disagree with the International Chamber of Commerce (ICC) panel's interpretation but respect the arbitration and dispute resolution process," Exxon said in a statement. "Given the significant value we've created in the development of the Guyana resource, we believed we had a clear duty to our investors to consider our preemption rights to protect the value we created through our innovation and hard work at a time when no one knew just how successful this venture would become," the company added. There is no appeals process at the International Chamber of Commerce, the court that oversaw the arbitration case. Exxon said in its statement that it respects the arbitration and dispute resolution process. CNBC first reported the arbitration outcome. An Exxon Mobil spokesperson confirmed to Reuters that Chevron prevailed in the mediation over Guyana oil assets. Chevron, Hess and CNOOC did not immediately respond to Reuters' requests for comment. Exxon, which operates the Stabroek Block with a 45% interest, and China's CNOOC, which holds 25%, filed arbitration claims against their partner Hess last year, arguing they had a contractual right-of-first-refusal to buy Hess' 30% interest in the joint venture. Chevron and Hess claimed the pre-emptive right did not apply to the sale of the entire Hess company. The claims from Exxon and CNOOC kicked off a legal battle that delayed Chevron's acquisition by at least a year and captured the attention of the global oil industry, shareholders and attorneys who craft joint operating agreements that govern oil partnerships around the world. The dispute likely centered on the interpretation of just several words in the confidential joint operating agreement between Exxon, Hess and CNOOC, experts told Reuters. During a conference in May, an Exxon executive said the company worked with Chevron around the world and would do so in Guyana if the arbitrators ruled against Exxon's claim. The fight illustrates the value of the Stabroek Block, which drove profits for the Exxon-led consortium that controls all of its oil output, transformed Guyana into one of the world's fastest-growing economies and still has potential for further oil discoveries. Hess' earnings from Guyana rose to $3.1 billion last year from $1.9 billion in 2023. Chevron's adjusted earnings last year totaled $18.3 billion, down from $24.7 billion in 2023. Even as it awaited the arbitration verdict, Chevron was making preparations so it could close the deal within 48 hours of resolving the arbitration and complete other operational tasks within 45 days, Reuters previously reported.
Geeky Gadgets
26 minutes ago
- Geeky Gadgets
Claude for Financial Services : Could Slash Financial Workloads by 80%
What if the future of finance wasn't just about human expertise but a seamless collaboration between people and innovative artificial intelligence? With the unveiling of Claude for Financial Services, Anthropic has introduced a innovative AI platform tailored specifically for the financial sector. This isn't just another tech release—it's a bold step toward redefining how financial professionals approach analysis, decision-making, and strategy. Imagine reducing underwriting timelines by 80% or boosting accuracy rates to 90%—these aren't hypothetical scenarios but real-world outcomes reported by early adopters of Claude. In an industry where precision and efficiency are paramount, this innovation could be the fantastic option for a new era of financial excellence. Anthropic explain how Claude is reshaping the financial landscape with its enterprise-grade AI infrastructure and specialized tools for data integration, financial modeling, and reporting. From automating tedious workflows to delivering actionable insights, the platform is designed to free up time for what truly matters: strategic decision-making and innovation. But it's not just about the technology—successful adoption also hinges on fostering a culture of collaboration between humans and AI. Whether you're curious about its core features, real-world applications, or strategies for seamless integration, this deep dive will illuminate how Claude is empowering financial professionals to stay ahead in an increasingly competitive market. Could this be the future your organization has been waiting for? AI Revolution in Finance Core Features and Functionalities Claude for Financial Services offers a comprehensive suite of features tailored to meet the demands of modern financial workflows. These capabilities are designed to streamline processes and improve outcomes: Data Integration: Effortless access to critical financial data from trusted sources such as S&P Global, FactSet, Morningstar, and PitchBook, making sure you have the information you need at your fingertips. Effortless access to critical financial data from trusted sources such as S&P Global, FactSet, Morningstar, and PitchBook, making sure you have the information you need at your fingertips. Excel Automation: Advanced automation tools simplify tasks like financial modeling and report generation, reducing manual errors and saving valuable time. Advanced automation tools simplify tasks like financial modeling and report generation, reducing manual errors and saving valuable time. Multimodal Reporting: Tools for creating detailed visualizations and actionable insights that empower better decision-making and communication. Tools for creating detailed visualizations and actionable insights that empower better decision-making and communication. Enterprise-Grade Security: SOC 2 Type 2 certification ensures that sensitive financial data is handled with the highest standards of privacy and compliance. These features collectively enable financial professionals to reduce manual workloads, improve the precision of their analyses, and focus on strategic initiatives that drive growth. Real-World Applications and Benefits Claude's capabilities have already delivered tangible benefits across a range of financial applications. Organizations using this platform have reported significant improvements in efficiency and accuracy: Investment firms have shortened underwriting timelines by up to 80%, while increasing accuracy rates from 75% to 90%. Leading institutions such as Bridgewater, Commonwealth Bank, AIG, and Norway's Sovereign Wealth Fund have used Claude for tasks including risk analysis, benchmarking, and investment memo preparation. By automating repetitive tasks and providing data-driven insights, Claude allows financial professionals to dedicate more time to strategic decision-making. This shift not only boosts productivity but also fosters innovation, allowing organizations to remain competitive in a rapidly evolving financial landscape. Claude for Financial Services Keynote July 2025 Watch this video on YouTube. Expand your understanding of Anthropic's Claude AI with additional resources from our extensive library of articles. Strategies for Successful AI Integration Adopting AI in financial services requires a strategic approach that goes beyond simply implementing new technology. Anthropic emphasizes the importance of fostering a culture that supports innovation and collaboration between humans and AI. Key strategies for successful integration include: Training Programs: Providing your team with the necessary skills and knowledge to effectively use AI tools. Providing your team with the necessary skills and knowledge to effectively use AI tools. Hackathons: Encouraging creative problem-solving and experimentation with AI to uncover new opportunities. Encouraging creative problem-solving and experimentation with AI to uncover new opportunities. Executive Buy-In: Securing support from leadership to align organizational goals and build confidence in AI adoption. Additionally, iterative learning systems allow organizations to continuously refine their use of AI, making sure that the technology evolves alongside their needs. By adopting these strategies, you can maximize the benefits of AI while minimizing potential disruptions to existing workflows. Build vs. Buy: Evaluating Your Options One of the critical decisions financial firms face when adopting AI is whether to build in-house solutions or purchase external platforms. Claude for Financial Services offers a compelling case for the latter. Partnering with an established AI provider like Anthropic grants you access to innovative technology and industry-specific expertise without the significant investment of time and resources required to develop tools internally. This approach allows your organization to focus on using AI's capabilities to achieve business objectives, rather than navigating the complexities of building and maintaining AI systems. By choosing a proven platform like Claude, you can accelerate your AI adoption and realize its benefits more quickly and effectively. The Role of AI in Shaping the Financial Industry AI is poised to play an increasingly pivotal role in the financial sector, driving advancements in areas such as investment management, risk assessment, and operational efficiency. By allowing faster, data-driven decision-making, AI helps uncover new revenue opportunities and equips organizations to navigate complex market dynamics with greater precision. However, AI is not a replacement for human expertise. Instead, it serves as a collaborative tool that enhances your capabilities, allowing you to make more informed and strategic decisions. This partnership between technology and human insight underscores the fantastic potential of AI to empower financial professionals and foster long-term growth. Claude for Financial Services exemplifies this potential by combining advanced technology with a focus on security, trust, and accuracy. As AI continues to reshape the financial landscape, adopting solutions like Claude can position your organization at the forefront of innovation, allowing you to thrive in an increasingly competitive market. Media Credit: Anthropic Filed Under: AI, Top News Latest Geeky Gadgets Deals Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
