23ndme, the giant of the genetic tests once valued in the billions, now sailing through the bankruptcy of Chapter 11 and notifying millions of current and previous customers that can be eligible to present claims as part of the restructuring process. The company and 11 of its subsidiaries, including Lemonoid Health and Lprxone, requested bankruptcy protection on March 23 of this year in the Eastern District of Missouri. The clients were alerted on Sunday that they have until July 14 to present claims for incurred losses.
Bankruptcy follows the tumultuous 18 months by 23Andme, marked by the decrease in sales, executive exits and a devastating data violation that committed confidential personal information of almost 7 million users. The violation, publicly revealed in October 2023, presented the names of the clients, years of birth, relationship labels, percentages of DNA shared with relatives, ancestry reports and self -informed locations, according to TechCrunch. The consequences triggered multiple collective demands and a wave of distrust of the client who severely undermined the company -oriented business.
Now, customs affected by that specific violation, those notified by 23 Andme that their information was compromised between May and October 2023, can present what is known as a claim of cyber security incidents. Those who suffered financial or others due to violation may file a claim as part of the bankruptcy case. Customers with other types of complaints not related to cyber attack, such as problems with the results of DNA tests or the company’s telesalud services, can send a separate claime under the date of the general bar.
Congress has also expressed groups on bankruptcy implications.
The 23Andme de la Gracia drop was rapid, and their problems were aggravated by their ambitious but expensive expansion in digital health and telemedicine, which included the acquisition of $ 400 million from Lemonaid Health in 2021. Originally aimed at the diversification of 23andme offers beyond the consumer’s DNA tests, the movements tensed the financial resources of 23 Andme In the growth of the company that the company needs.
An agreement of $ 30 million in a related collective claim on cyber attack remains waiting due to bankruptcy procedures. (23Andme’s lawyers say the agreement is in dispute now that the company is in bankruptcy). Customers who wish to preserve their right to compensation must a formal claim evidence, regardless of their participation in collective demand.
Techcrunch has contacted 23 Andme to comment.
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