23andMe Files for Bankruptcy: What Does This Mean for Customers and How to File Claims?
In a shocking turn of events, 23andMe, the genetic testing giant once valued at billions, has filed for Chapter 11 bankruptcy. As part of the restructuring process, the company is notifying millions of its current and former customers about their eligibility to file claims. The deadline to submit claims is fast approaching, with the final day being July 14, 2025. This blog post answers everything you need to know about 23andMe’s bankruptcy, what it means for your personal data, and how you can file a claim if you were affected.
What Caused 23andMe’s Bankruptcy?
Once a leader in genetic testing, 23andMe now faces significant financial challenges. Declining sales, key executive departures, and a devastating data breach have all contributed to the company's swift downfall. The breach, which affected nearly 7 million users, exposed sensitive data such as personal details, ancestry reports, and DNA results. This breach, disclosed in October 2023, triggered a wave of class-action lawsuits and customer mistrust. As the company struggles to recover, it filed for bankruptcy protection in March 2025, hoping to restructure and avoid total collapse.
Who Can File a Claim and What Are the Deadlines?
If you’re one of the millions of 23andMe customers whose data was compromised during the breach, or if you've had other grievances with the company, you may be eligible to file a claim. The company has specified that customers impacted by the data breach between May and October 2023 can file a Cyber Security Incident Claim. Those who suffered financial or personal harm due to the breach are encouraged to submit claims.
However, there’s more. Customers with issues unrelated to the breach—such as problems with DNA test results or telehealth services—can file under the General Bar Date Package. It’s essential to note that claims must be submitted by July 14, 2025, to ensure eligibility for any compensation related to these issues.
The Financial Fallout and Class-Action Lawsuits
23andMe's expansion into digital health and telemedicine through the $400 million acquisition of Lemonaid Health in 2021 failed to deliver the anticipated growth, exacerbating the company's financial woes. As a result, it found itself unable to recover from both the declining business performance and the reputation damage caused by the breach.
Currently, a $30 million class-action settlement related to the breach is on hold, pending the bankruptcy proceedings. If you were part of the class action or affected by the breach, submitting a proof of claim will help protect your right to compensation, even if the settlement is still under dispute.
What Are the Next Steps for Affected Customers?
If you believe your information was compromised during the breach or you have other claims against 23andMe, it’s crucial to act fast. Filing a claim by the July 14 deadline is your best opportunity to seek compensation for any damages or losses you’ve incurred. Keep an eye out for communication from the company regarding the claims process, and ensure that your claim is submitted accurately and on time to avoid missing out on potential compensation.
Post a Comment