Victims of the 2023 data breach at genetics testing firm 23andMe are to share a $46.75m (£35m) payout, after a California bankruptcy court ruled that the company’s new owner must compensate as many as 6.9 million people whose personal information was exposed.
The ruling, handed down on Tuesday, draws a line under one of the most damaging data breaches in consumer technology, and offers UK business owners a stark illustration of how a single security failure can help bring down a company once valued at $6bn.
Chrome Holding, which operates as the TTAM Research Institute, took control of 23andMe last year following the firm’s bankruptcy. It is run by 23andMe co-founder Anne Wojcicki, who won the company’s assets at a bankruptcy auction with a bid of $305m.
Under the ruling, the settlement will first be paid to Kroll Restructuring, which represents the victims, within five business days of Tuesday’s decision. Kroll will then distribute the funds. The appointment of firms such as Kroll is typical in corporate bankruptcy proceedings.
Business Matters has contacted the legal team representing the victims to ask how many people will receive the payout. Representatives of Chrome Holding and 23andMe have also been contacted for comment.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
