23andMe: 23andMe Bankruptcy Judge to Review Data Breach Deals, Legal Fees

23andMe Bankruptcy Judge to Rule on Data Breach Settlements and Legal Fees

A U.S. bankruptcy judge overseeing 23andMe’s Chapter 11 case will issue a final decision next week on settlements with victims of a 2023 data breach, along with contested legal fees for attorneys representing the claimants. Judge Brian C. Walsh of the U.S. Bankruptcy Court for the Eastern District of Missouri announced the ruling during a Tuesday hearing, setting the deadline for January 28.

The case centers on two key agreements: one involving a class of U.S.-based victims and another tied to the company’s 2025 asset sale out of bankruptcy. While 23andMe has already resolved its financial restructuring, the remaining focus is on compensating data breach claimants and resolving disputes over legal fees.

The breach, disclosed in late 2023, exposed sensitive genetic and personal data of millions of users, raising concerns over privacy and cybersecurity risks. The settlements under review aim to address these claims, though the final approval process has faced scrutiny over fairness and transparency.

The judge’s upcoming ruling will determine the final terms of compensation and the allocation of legal costs, marking a critical step in resolving the fallout from one of the most significant genetic data breaches to date.

Source: https://news.bloomberglaw.com/bankruptcy-law/23andme-bankruptcy-judge-to-review-data-breach-deals-legal-fees

23andMe cybersecurity rating report: https://www.rankiteo.com/company/23andme

"id": "23A1768948228",
"linkid": "23andme",
"type": "Breach",
"date": "6/2023",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"

{'affected_entities': [{'customers_affected': 'Millions of users',
                        'industry': 'Genetic Testing / Biotechnology',
                        'location': 'United States',
                        'name': '23andMe',
                        'type': 'Company'}],
 'data_breach': {'number_of_records_exposed': 'Millions',
                 'personally_identifiable_information': 'Yes',
                 'sensitivity_of_data': 'High',
                 'type_of_data_compromised': ['Genetic data', 'Personal data']},
 'date_publicly_disclosed': '2023-10',
 'description': 'A U.S. bankruptcy judge overseeing 23andMe’s Chapter 11 case '
                'will issue a final decision on settlements with victims of a '
                '2023 data breach, along with contested legal fees for '
                'attorneys representing the claimants. The breach exposed '
                'sensitive genetic and personal data of millions of users, '
                'raising concerns over privacy and cybersecurity risks.',
 'impact': {'brand_reputation_impact': 'Raised concerns over privacy and '
                                       'cybersecurity risks',
            'data_compromised': 'Sensitive genetic and personal data',
            'identity_theft_risk': 'High',
            'legal_liabilities': 'Settlements under review for data breach '
                                 'claims'},
 'investigation_status': 'Ongoing (settlement review)',
 'references': [{'source': 'U.S. Bankruptcy Court for the Eastern District of '
                           'Missouri'}],
 'regulatory_compliance': {'legal_actions': ['Bankruptcy proceedings',
                                             'Settlement negotiations']},
 'title': '23andMe Data Breach Settlements and Legal Fees Ruling',
 'type': 'Data Breach'}