Genetic testing company 23andMe files for Chapter 11 bankruptcy, CEO resigns
From Yahoo Finance: 2025-03-24 08:58:00
Genetic testing company 23andMe files for Chapter 11 bankruptcy protection, with the CEO resigning. The company plans to sell assets in a court-approved reorganization, with the co-founder stepping down but bidding on the company in the bankruptcy process. Challenges include a 2023 data breach and financial struggles since going public in 2021.
Founded in 2006, 23andMe aimed to revolutionize genetics and health care with saliva-based DNA testing kits. Recent turmoil includes the resignation of all independent directors, layoffs, and discontinuation of the therapeutics division. Shares plummeted after the bankruptcy filing, leaving the company seeking new ownership.
Chapter 11 bankruptcy aims to facilitate a sale of 23andMe, helping cut costs and resolve liabilities. The company plans to operate through the process, receiving debtor-in-possession financing. Data privacy remains a priority, with safeguards in place for customer data during the bankruptcy proceedings.
Uncertainty surrounds 23andMe’s future ownership, with concerns over data protection. A 2023 data breach led to a settlement and legal liabilities, prompting some to urge customers to delete data. The company plans to use bankruptcy proceedings to settle outstanding legal issues, with ongoing data privacy considerations.
Read more: 23andMe files for Chapter 11 bankruptcy as co-founder and CEO Wojcicki resigns