23andMe, a once-prominent genetic testing company valued in the billions, has filed for Chapter 11 bankruptcy protection as it grapples with significant financial challenges. On March 23, the company declared bankruptcy in the U.S. bankruptcy court for the Eastern District of Missouri. It accomplished that together with their rest 11 subsidiaries, which incorporate Lemonaid Health and LPRXOne. This announcement follows a bruising 18-month period that has seen the company’s sales slump, the exodus of C-Suite leadership, and an utterly disastrous data breach.
The data breach, disclosed publicly in early October 2023, resulted in sensitive personal information being exposed for nearly 7 million users. This breach did more than worry the public about the safety of their data. It spurred a class action lawsuit against the company. A $30 million proposed settlement for this lawsuit is still pending. This makes things even more difficult for 23andMe as it works through bankruptcy proceedings.
23andMe has begun notifying millions of current and former customers that their genetic data could be involved in a massive corporate restructuring process. These customers deserve the ability to file claims. If your sensitive information, like social security number, was involved in this breach, do the following. We strongly urge them to file a Cyber Security Incident Claim. The deadline to file these claims is July 14. The clock is ticking now for affected users, who only have a short window of time to pursue recompense for their losses.
The fall of 23andMe has been as rapid and dramatic as its rise. The company’s ambitious expansion into digital health and telemedicine, which included the acquisition of Lemonaid Health in 2021 for $400 million, strained its financial resources without yielding the expected growth. This decision has put the company in a financially fraught position. It does so amid falling revenues and top executive turmoil, most notably the resignation of its CEO in the midst of bankruptcy filing.
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