Officials, including the California Attorney General, are asked what will happen to the data collected by the company.
The 23andme genetic testing company filed a bankruptcy protection request in the United States, in the midst of poor demand and losses from data violation 2023. His co -founder and executive director resigned.
23Andme based in San Francisco on Sunday that he will strive to sell “significantly all his property” through the reorganization plan approved by the court.
The company’s shares on Monday fell 50 percent on Monday, at 88 cents after the co -founder Anne Wojcicki, who gave multiple unsuccessful offers to take over, resigned as executive director. 23Andme did not say if there were other interested bidders. It will continue to work during the sales process, providing $ 35 million funding over the weekend.
Wojcicki intends to still bid 23Andme while the company implements sale through the bankruptcy process. In a statement On social mediaWojcicki said she resigned as the executive director to be “in the best position” as an independent bidder.
“There is no doubt that the challenges facing 23Andme through the evolutionary business model are real, but my belief in the company and its future is unwavering,” she added later.
Officials, including the California State Attorney of the Boys Bont, questioned what would happen to the genetic data collected from 23Andme, although the company’s privacy policies say the data could be sold to other companies. The company has announced that the bankruptcy procedure will not affect how it stores, manages or protects customers’ information.
23Andme attracted a lot of investors’ attention when it was first taken publicly through an acquisition vehicle vehicle (SPAC) driven by billionaire Richard Branson with an estimate of $ 3.5 billion in 2021. Its market value reached the peak later that year at almost $ 6 billion due to flourishing in black, but the demand for their hunting.
The sale of consumer kits often picked up during the holidays, but 23Andme struggled to retain customers mainly because people would once use kits and see little reasons to order another one. Bernstein research analysts said the market for the origin of origin could be close.
In 2023, the hackers exhibited personal information about nearly seven million customers 23Andme during the five -month period, dealing with a big blow to the company’s reputation and composing its growth problems. Violation caused an alarm among customers who are concerned about their privacy and how DNA testing companies solve their information.
23Andme eventually agreed late last year at a settlement of $ 30 million in a violation lawsuit.
Founded on the promise
23Andme was founded in 2006 with promises to revolutionize the future of genetics and health care. The company became known for its DNA testing kits based in saliva, bought by millions of customers eager to learn more about their origin, and later further dived into health research and development of medicines.
But in recent years they have been far from smooth navigation. And Sunday voluntary bankruptcy that tolerates the coats of a few turmoil.
In September, all its independent directors resigned in a rare move after negotiating with Wojcicki.
In November, the company announced that it would release 40 percent of its workforce, or more than 200 employees and abolish its therapeutic department. And in January, the Special Committee of the Committee said he was investigating strategic alternatives, including possible sales.
In addition to breaking data, uncertainty about the future of the company has led to some recently called 23Andme customers to delete their information.
On Friday, for days before the 23rd. And the bankruptcy reports, Bonta issued Emergency warnings Remarks of 23Andme customers on their legal rights under the state law and invited them to consider deleting and destroying any genetic data the company had. The Bonta Office pointed to 23Andme’s financial trouble and “poisoning of sensitive consumer data” collected by the company.
