Multiple States Sue 23andMe to Block Sale of Customer Genetic Data Amid Bankruptcy
Twenty-seven states and the District of Columbia are suing 23andMe to prevent the sale of genetic data without customer consent during its bankruptcy proceedings.
One Tech Tip: How to protect your 23andMe genetic data
Associated Press
Overview
- Twenty-seven states and the District of Columbia have filed a lawsuit against 23andMe in bankruptcy court to protect customer genetic data.
- The lawsuit follows 23andMe's Chapter 11 bankruptcy filing in March and significant layoffs of 40% of its workforce.
- States argue that customers should retain control over their personal genetic information, especially during the company's financial struggles.
- A court-appointed ombudsman will assess the impact of the proposed sale on consumer privacy and report findings to the court.
- 23andMe's potential sale to Regeneron Pharmaceuticals for $256 million has raised concerns about compliance with privacy laws and customer consent.
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Analysis
Block the sale of 23andMe's genetic data without customer consent to protect personal privacy.
27 states and the District of Columbia are suing to prevent 23andMe from selling personal genetic data without customer consent.
In March, 23andMe laid off 40% of its staff, filed for Chapter 11 bankruptcy protection in the Eastern District of Missouri, and raised concerns about the safety of customer data.
Customers should have the right to control their deeply personal information and it should not be treated as ordinary property for sale.
A biotechnology company is seeking court approval to purchase a struggling firm amidst a lawsuit.
A court-appointed consumer privacy ombudsman was tasked with assessing the impact of a proposed sale on consumer privacy and reporting back to the court by Tuesday.
23andMe customers utilize saliva-based DNA testing kits to discover their ancestry and connect with distant relatives.
The company, founded in 2006, conducted health research and drug development.
Regeneron Pharmaceuticals announced its intention to acquire the company for $256 million last month.
Regeneron will adhere to 23andMe's privacy policies and relevant laws.
23andMe has faced challenges in finding a profitable business model since going public in 2021, resulting in a 40% staff layoff.
Articles (7)
"…The lawsuit seeks a declaration that it cannot sell customers’ genetic data without their consent."
CNN·21d·"…Biological samples, DNA data, health-related traits and medical records are too sensitive to be sold without each person’s express, informed consent."
NBC News·21d·"…The lawsuit comes as a biotechnology company seeks the court's approval to buy the struggling firm."
NPR·21d·"…Biological samples, DNA data, health-related traits and medical records are too sensitive to be sold without each person’s express, informed consent, Oregon Attorney General Dan Rayfield said in a news release about the lawsuit."
ABC News·21d·"…Biological samples, DNA data, health-related traits and medical records are too sensitive to be sold without each person’s express, informed consent, Oregon Attorney General Dan Rayfield said in a news release about the lawsuit."
ABC News·22d·"…The company said it wants to pull back on its real estate footprint and has asked the court to reject lease contracts in San Francisco and Sunnyvale, California, and elsewhere to help cut costs."
Associated Press·21d·"…The lawsuit seeks a declaration that it cannot sell customers' genetic data without their consent."
Newsmax·21d·FAQ
Twenty-seven states and the District of Columbia are suing 23andMe over concerns about the sale of personal genetic data without customer consent, particularly amid the company's acquisition by Regeneron.
Regeneron is acquiring 23andMe's Personal Genome Service, Total Health and Research Services business lines, and its Biobank, excluding the Lemonaid Health business.
Regeneron has pledged to ensure compliance with 23andMe's consumer privacy policies and applicable laws regarding the treatment of customer genetic data.
History
- 21d3 articles