23andMe Data Breach Victims to Receive $47 Million Settlement
A California bankruptcy court judge has approved a $46.75 million payout to individuals affected by a 2023 data hack at the genetics testing company.
Victims of a 2023 data breach at genetics testing company 23andMe are slated to receive a $46.75 million settlement, a California bankruptcy court judge ruled Tuesday. Chrome Holding, which acquired 23andMe after its bankruptcy last year, will be responsible for the payout.
23andMe, which compiles genetic profiles through DNA testing kits, faced criticism after a 2023 hack compromised data from up to 6.9 million individuals. While the direct breach affected a smaller number of user accounts, hackers were able to access the profiles of those users' relatives, expanding the reach of the compromised data.
The settlement funds will first be paid to Kroll Restructuring, the entity representing the victims, within five business days. Kroll will then distribute the compensation to the affected individuals.
Chrome Holding operates under the name TTAM Research Institute and is managed by Anne Wojcicki, a co-founder of 23andMe. She purchased the company's assets for $305 million in a bankruptcy auction last year.
The data breach prompted investigations and regulatory actions. The UK's Information Commissioner's Office (ICO) issued a £2.31 million fine, stating that 23andMe had failed to implement adequate security measures for sensitive user data. In May, the Attorney General of California, Rob Bonta, sued the company, alleging that 23andMe neglected basic data protection steps and misled consumers about the severity of the breach.
23andMe, founded in 2006 and publicly traded since 2021, has never turned a profit. The company, once valued at $6 billion, has continued to offer its DNA testing kits online following its bankruptcy proceedings.