The United States Pioneer Genetic Testing Company has declared bankruptcy and is looking for a buyer two years after computer pirates obtained access to millions of profiles.
23Andme, who sells a mail return saliva test to determine the ancestry or certain genetic features related to health for less than $ 200, said he had “presented a voluntary request for reorganization” with a state bankruptcy court in Missouri.
The announcement led to the warnings of 23Andme customers to ask the company to eliminate its data amid privacy fears.
At its peak a few years ago, the fashion of DNA tests saw millions of consumers hurry to discover their information of ancestry and health with 23Andme tests becoming popular Christmas gifts.
The company based in Silicon Valley, which was made public in 2021, claims 15 million customers, but its sales decreased in recent months as the fashion of the tests faded and the company suffered a data violation.
23Andme said he rejected an offer of acquisition of his co -founder and CEO Anne Wojcicki, who resigned from his position, but will remain in the company’s board of directors, according to the statement.
In X, Wojcicki published: “While I am disappointed to have reached this conclusion and my offer was rejected, I support myself in the company and I intend to be a bidder.”
He explained that his resignation as CEO was strategic to “be in the best position to follow the company as an independent bid.”
Wojcicki, who co -founded 23 Andme 19 years ago, recognized the company’s challenges, but emphasized his “unwavering” belief in his future.
The company announced the dismissal of 40 percent of its staff in November, about 200 people. He also suspended his research programs.
The executive director of 23Andme, Anne Wojcicki, said she intends to be an independent company offer. Fountain: AAPA / Jeff Chiu/AP
In a regulatory presentation, 23Andme also said that he agreed to pay approximately US $ 37.5 million ($ 59.6 million) to solve claims related to data violation 2023.
The 2023 piracy incident affected 6.9 million accounts, with 5.5 million that contain information on genetic coincidences.
Using old customer passwords, hackers committed data that included names, sex, year of birth, location, photos, health information and results of genetic descent.
‘It’s time to eliminate’
With the bankruptcy announcement, the Attorney General of California, Rob Bonta, advised customers to send their DNA to eliminate their genetic information from the website.
“Given the financial anguish reported from 23 Andme, I remind the Californians to consider invoking their rights and ordering 23 to eliminate their data and destroy any sample of genetic material held by the company,” Bonta said in a statement.
There are few data privacy safeguards in the United States nationwide, but California has its own laws that regulate user data.
Geoffrey Fowler, a Washington Post technological columnist warned: “If you are one of the 15 million people who shared your DNA with 23Andme, it’s time to eliminate your data.”
He cited the risk “that his data could be sold or transferred to a new company, which could use them for new purposes.”
The price of the company’s shares decreased by almost 50 percent to 92 cents in Monday’s trade on Wall Street.
:contrast(11)/https://prod.static9.net.au/fs/e01f645b-6a29-4922-94da-c1581ad14747?w=1200&resize=1200,0&ssl=1 "Former police officer who killed grandma Clare Nowland in fatal Tasering spared jail")
