DNA Testing Firm 23andMe Files for Bankruptcy, Data Privacy Concerns Rise
Genetic testing pioneer 23andMe has filed for Chapter 11 bankruptcy protection, raising renewed concerns about the security of personal data belonging to its over 15 million customers.
The once-prominent Silicon Valley company sought bankruptcy protection on Sunday, citing decreased demand for its DNA ancestry kits, previously endorsed by Oprah Winfrey, and the aftermath of a 2023 data breach that severely damaged its reputation.
23andMe stated it will continue operations during the sale process, having secured $35 million in funding over the weekend.
Data Privacy in Question
However, consumer advocates and privacy experts have voiced significant worries regarding the future of genetic information held by companies like 23andMe, whose bankruptcy could result in the sale or transfer of its extensive database.
I. Glenn Cohen, a professor at Harvard Law School, highlighted these concerns, emphasizing that users’ genetic data could end up “in the hands of someone other than 23andMe, in a manner that many individuals who entrusted their information to 23andMe never anticipated and might oppose.”
Cohen suggested, “This could be an opportune moment to delete your information from your account, although it’s not a perfect solution.”
He also expressed hope for improved regulatory solutions to safeguard user data.
“I would like to see a system where people can access the information they desire without feeling that their data might put them at risk,” Cohen stated.
California Attorney General Rob Bonta had also urged customers of the financially troubled firm to remove their data from 23andMe’s servers before Sunday’s bankruptcy filing.
How to Delete Your 23andMe Data
Here’s a step-by-step guide on how customers can delete their data from 23andMe:
- Log in to your 23andMe account on the company website.
- Navigate to the “Settings” area of your profile.
- Scroll to the section labeled “23andMe Data.”
- Click “View” next to “23andMe Data.”
- Prior to deletion, you have the option to download your genetic data if you wish to keep a personal copy.
- Scroll to the “Delete Data” section and select “Permanently Delete Data.”
- You will receive a confirmation email; click the link provided to confirm your data deletion request.
Additionally, users can take these steps:
- Destroy Stored Samples:
Go to your account “Preferences” and adjust your storage settings to destroy your saliva sample and DNA. - Withdraw Research Consent:
Navigate to “Research and Product Consents” in account settings to revoke consent for your data to be used in research.
Federal protections currently offer limited assistance to consumers who have provided their genetic data to private entities like 23andMe.
The Health Insurance Portability and Accountability Act (HIPAA), which protects medical information, does not cover direct-to-consumer genetic testing companies.
While other laws such as the Genetic Information Nondiscrimination Act (GINA) provide some safeguards against discrimination, comprehensive data privacy protections remain lacking.
Bankruptcy law offers minimal safeguards through federal court oversight and, in some instances, privacy ombudspersons, but these protections are restricted.
CEO Anne Wojcicki Resigns, Plans Bid for Company
Meanwhile, 23andMe co-founder and Chief Executive Officer Anne Wojcicki announced her resignation on social media platform X and disclosed intentions to become an independent bidder for the company she helped establish.
Chief Financial and Accounting Officer Joe Selsavage will assume the role of interim CEO during the transition period.
Wojcicki, a Yale-educated biologist and former health care analyst, co-founded 23andMe in 2006 with the aim of giving individuals direct access to their genetic information.
Her leadership and public profile aided in propelling the company to the forefront of consumer biotech, amplified by her well-known personal life — she was previously married to Google co-founder Sergey Brin and later linked to former baseball star Alex Rodriguez.
Brin and Wojcicki separated in 2013 and finalized their divorce in 2015 after eight years of marriage.
The separation became public around the time reports emerged of Brin’s romantic involvement with a Google employee, Amanda Rosenberg, who worked in marketing for the now-defunct Google Glass project.
Although neither Brin nor Wojcicki publicly confirmed the affair as the reason, media outlets widely connected it to the dissolution of their marriage.
Both Brin and Wojcicki have maintained privacy regarding the details and have sustained a cordial relationship, especially for the sake of co-parenting their two children.
In 2022, Brin, whose net worth was estimated by the Bloomberg Billionaires Index at $140 billion as of Monday, filed for divorce from his second wife, Nicole Shanahan, who later became a vice presidential candidate in the 2024 election, running alongside Robert F. Kennedy Jr.
Wojcicki dated former Yankees outfielder Alex Rodriguez from early 2016 to early 2017. Reports suggest the pair split amicably, with sources indicating that their different lifestyles and social circles played a role in the breakup.
Last summer, Wojcicki’s older sister, Susan Wojcicki, the former YouTube CEO and one of Google’s earliest employees, died from lung cancer at age 56. She joined Brin and co-founder Larry Page at Google when it was a startup in the late 1990s.
Anne Wojcicki, with her scientific expertise and Silicon Valley network, played a vital role in navigating the scientific as well as regulatory challenges of commercial genetic testing.
Her departure signifies the end of an era for the company, though she emphasized her ongoing commitment to 23andMe.
In her farewell message, Wojcicki acknowledged the company’s turbulent journey but expressed pride in its achievements.
“We have had numerous successes, but I also take responsibility for the challenges we face today,” she stated.
As the company seeks a new owner and a revised strategy, it remains to be seen if the next chapter of 23andMe will fulfill the ambitious vision that once made it a biotech industry leader.
“There is no doubt that the difficulties faced by 23andMe due to a changing business model have been real, but my belief in the company and its future is unwavering,” she wrote.
The company is best known for its direct-to-consumer DNA testing kits, enabling customers to analyze their ancestry and health predispositions using a simple saliva sample.
Financial Difficulties and Data Breach Aftermath
Once valued at $6 billion shortly after its initial public offering in 2020, 23andMe’s market capitalization has since plummeted to approximately $50 million.
At its peak, 23andMe’s stock traded around $320 per share in early 2021. As of Monday, the share price was below $1.
In recent years, the company has encountered increased pressure from investors and regulators, as well as legal issues arising from a significant data breach in 2023 that compromised the private information of nearly 7 million users.
Last September, 23andMe agreed to a $30 million settlement in a lawsuit related to the data breach.
In November, the company reduced its workforce by 40% in an effort to decrease expenses.
Mark Jensen, Chair and member of the Special Committee of the Board of Directors, stated that the decision to pursue a court-supervised sale followed a “comprehensive evaluation of strategic options.”
“We anticipate the court-supervised process will further our efforts to address the business and economic challenges we face, including additional cost reductions and the resolution of legal and lease obligations,” he said.