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Los Angeles Times
a day ago
- Business
- Los Angeles Times
Court approves sale of 23andMe to nonprofit led by co-founder Anne Wojcicki
23andMe, a distressed genetic testing company that filed for bankruptcy this year, has received another potential lifeline. A bankruptcy judge approved the sale of the company's assets and business operations to a nonprofit led by 23andMe's co-founder and former chief executive, Anne Wojcicki. The nonprofit, TTAM Research Institute, will pay $305 million as part of the deal that will likely close in the coming weeks. The South San Francisco-based company's financial turmoil sparked privacy concerns over what happens to the genetic data of its 13 million customers if it's sold. These worries prompted 1.9 million users to delete their accounts. Several states, including California, sued to block the sale of 23andMe's data without user consent, arguing that customers have an inherent right to their own genetic information. Unlike a password, a person's genetic data can't be changed if compromised. Judge Brian Walsh, a judge for the U.S. Bankruptcy Court in the Eastern District of Missouri, in St. Louis, said in an opinion filed Friday that 'a company's sale of genetic data is a scary proposition, and reasonable people might conclude that it should not be permitted in any circumstances.' But the proposed sale means that Wojcicki would repurchase a business that she helped start and led for years. And she 'will improve privacy practices while honoring customers' rights to delete their accounts and data,' the judge said. 'Core to my beliefs is that individuals should be empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish,' Wojcicki said in a statement. The entrepreneur has tried to pave the way forward for 23andMe several times in the past. Before 23andMe filed for bankruptcy, the company's special committee rejected Wojcicki's proposal to take the company private by acquiring all of the company's outstanding shares. The company's stock plunged before it filed for bankruptcy. Wojcicki stepped down from her role as chief executive but remained on 23andMe's board. Earlier, drug maker Regeneron Pharmaceuticals was set to buy 23andMe. Then a bankruptcy judge reopened the bidding process to allow for a bid from TTAM, which offered a higher price. Weighing arguments from states opposed to the sale, Walsh noted that 23andMe's privacy statement says that their users' personal information could be sold as part of a merger, acquisition or sale of the company's assets. Under the deal, TTAM would make employment offers to 23andMe workers and genetic data wouldn't be disclosed to new parties, according to the court filing. Once valued at $6 billion, 23andMe filed for Chapter 11 bankruptcy in March. Founded in 2006, the company sells DNA testing kits that people use to learn about their ancestry and health. The company struggled with recurring revenue growth because people just took the DNA test once. It also faced privacy concerns. In 2023, hackers obtained personal information of roughly 7 million 23andMe customers. Some of the data accessed included ancestry trees, birth years and geographic locations, highlighting the risks that come with handing over data to private companies. In an email sent to customers after the sale was approved, 23andMe said that TTAM is committed to adhering to the company's privacy policy and customers have the right to opt out of research or delete their accounts.
Yahoo
14-06-2025
- Business
- Yahoo
Anne Wojcicki's nonprofit wins bid for genetic testing company 23andMe
A nonprofit controlled by Anne Wojcicki, former chief executive of 23andMe, has won the bidding process to buy the bankrupt genetic testing company. If approved by the court, the sale would put Wojcicki back at the helm of the company she co-founded and previously attempted to take private. 23andMe, which helped popularize at-home DNA test kits and was once valued at $6 billion, declared Chapter 11 bankruptcy in March. The potential sale of the company has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. Read more: 'People should be worried': 23andMe bankruptcy could expose customers' genetic data More than 11 million customers have given DNA samples to 23andMe, putting a trove of genetic information under the company's control. Wojcicki's nonprofit TTAM Research Institute agreed to comply with 23andMe's privacy policy and committed to adopting additional consumer protections, according to a 23andMe statement. TTAM has offered $305 million to buy 23andMe and the company's assets. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome," Wojcicki said in a statement. "We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data." Read more: States sue to block the sale of genetic data collected by DNA testing company 23andMe New York-based drug maker Regeneron Pharmaceuticals was poised to buy 23andMe before the bankruptcy judge reopened the bidding process to allow for a bid from TTAM. The final round of bidding was conducted by the U.S. Bankruptcy Court for the Eastern District of Missouri and concluded when Regeneron declined to make a higher bid. Dozens of states have filed a joint lawsuit against 23andMe to block the South San Francisco-based company's sale of its customers' genetic data without explicit consent. 'This isn't just data — it's your DNA,' said Oregon Atty. Gen. Dan Rayfield in a statement. 'People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.' Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
13-06-2025
- Business
- Los Angeles Times
Anne Wojcicki's nonprofit wins bid for genetic testing company 23andMe
A nonprofit controlled by Anne Wojcicki, former chief executive of 23andMe, has won the bidding process to buy the bankrupt genetic testing company. If approved by the court, the sale would put Wojcicki back at the helm of the company she co-founded and previously attempted to take private. 23andMe, which helped popularize at-home DNA test kits and was once valued at $6 billion, declared Chapter 11 bankruptcy in March. The potential sale of the company has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. More than 11 million customers have given DNA samples to 23andMe, putting a trove of genetic information under the company's control. Wojcicki's nonprofit TTAM Research Institute agreed to comply with 23andMe's privacy policy and committed to adopting additional consumer protections, according to a 23andMe statement. TTAM has offered $305 million to buy 23andMe and the company's assets. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement. 'We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data.' New York-based drug maker Regeneron Pharmaceuticals was poised to buy 23andMe before the bankruptcy judge reopened the bidding process to allow for a bid from TTAM. The final round of bidding was conducted by the U.S. Bankruptcy Court for the Eastern District of Missouri and concluded when Regeneron declined to make a higher bid. Dozens of states have filed a joint lawsuit against 23andMe to block the South San Francisco-based company's sale of its customers' genetic data without explicit consent. 'This isn't just data — it's your DNA,' said Oregon Atty. Gen. Dan Rayfield in a statement. 'People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.'
Yahoo
11-06-2025
- Business
- Yahoo
States sue to block the sale of genetic data collected by DNA testing company 23andMe
Dozens of states have filed a joint lawsuit against the bankrupt DNA-testing company 23andMe to block the company's sale of its customers' genetic data without explicit consent. The suit, filed this week in U.S. Bankruptcy Court in the Eastern District of Missouri, comes months after 23andMe began a court-supervised sale process of its assets. The South San Francisco-based venture was once valued at $6 billion and has collected DNA samples from more than 15 million customers. The company's bankruptcy has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. Twenty-seven states and the District of Columbia filed the lawsuit, arguing that 23andMe customers have an inherent right to their own genetic information. Read more: 'People should be worried': 23andMe bankruptcy could expose customers' genetic data 'This isn't just data — it's your DNA," said Oregon Atty. Gen. Dan Rayfield in a statement. "It's personal, permanent, and deeply private. People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder." 23andMe announced in May that it would be sold to New York-based drug maker Regeneron Pharmaceuticals, which had agreed to comply with 23andMe's existing privacy policy. However, a competing offer from nonprofit TTAM Research Institute led the bankruptcy judge to reopen the auction last week. TTAM is run by 23andMe co-founder Anne Wojcicki, who has made several failed attempts to take the company private. In a statement, a 23andMe spokesperson said the lawsuit's claims "are without merit" and that the sale of genetic data does not violate privacy regulations. 'Customers will continue to have the same rights and protections in the hands of the winning bidder," the spokesperson said. Read more: Congressmen sound alarm over data privacy following 23andMe bankruptcy 23andMe customers have the right to delete their genetic information from the company's database at any time, as outlined in the Genetic Information Privacy Act and the California Consumer Privacy Act. During a testimony in Washington earlier this week, 23andMe interim Chief Executive Joseph Selsavage said that 1.9 million customers have requested their data be deleted since the company's bankruptcy filing in March. Sara Geoghegan, senior counsel at the Electronic Privacy Information Center, said that 23andMe's privacy policy was subject to change and not adequate to protect customers' data. In an interview in March, she stressed the sensitivity of genetic data. 'I would be very concerned if I had given a swab to 23andMe," she said. "There is little we can do to control what happens to it." Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
11-06-2025
- Business
- Los Angeles Times
States sue to block the sale of genetic data collected by DNA testing company 23andMe
Dozens of states have filed a joint lawsuit against the bankrupt DNA-testing company 23andMe to block the company's sale of its customers' genetic data without explicit consent. The suit, filed this week in U.S. Bankruptcy Court in the Eastern District of Missouri, comes months after 23andMe began a court-supervised sale process of its assets. The South San Francisco-based venture was once valued at $6 billion and has collected DNA samples from more than 15 million customers. The company's bankruptcy has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. Twenty-seven states and the District of Columbia filed the lawsuit, arguing that 23andMe customers have an inherent right to their own genetic information. 'This isn't just data — it's your DNA,' said Oregon Atty. Gen. Dan Rayfield in a statement. 'It's personal, permanent, and deeply private. People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.' 23andMe announced in May that it would be sold to New York-based drug maker Regeneron Pharmaceuticals, which had agreed to comply with 23andMe's existing privacy policy. However, a competing offer from nonprofit TTAM Research Institute led the bankruptcy judge to reopen the auction last week. TTAM is run by 23andMe co-founder Anne Wojcicki, who has made several failed attempts to take the company private. In a statement, a 23andMe spokesperson said the lawsuit's claims 'are without merit' and that the sale of genetic data does not violate privacy regulations. 'Customers will continue to have the same rights and protections in the hands of the winning bidder,' the spokesperson said. 23andMe customers have the right to delete their genetic information from the company's database at any time, as outlined in the Genetic Information Privacy Act and the California Consumer Privacy Act. During a testimony in Washington earlier this week, 23andMe interim Chief Executive Joseph Selsavage said that 1.9 million customers have requested their data be deleted since the company's bankruptcy filing in March. Sara Geoghegan, senior counsel at the Electronic Privacy Information Center, said that 23andMe's privacy policy was subject to change and not adequate to protect customers' data. In an interview in March, she stressed the sensitivity of genetic data. 'I would be very concerned if I had given a swab to 23andMe,' she said. 'There is little we can do to control what happens to it.'
