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.
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.
Analysis
Block the sale of 23andMe's genetic data without customer consent to protect personal privacy.
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