23andme has applied for bankruptcy, says customer data is safe

Genetic Testing Company 23andme is submitted to the bankruptcy of the head 11 to help the company $ 50 million to sell itself, the company reports on Sunday.

23andme’s Saliva -based sets They help customers learn about their ancestry since 2006, and the company has stated that it will continue to work as long as the bankruptcy court contributes to the sale process.

The news about this step has caused concern about how millions of 23ndme will be processed.

California Prosecutor General Rob Bonta Issued A “Consumer Warning” As for the “trove sensitive data of consumers who have gathered”, reminding the Californians that they have the right to send the company to remove their genetic data, destroy their test samples and withdraw the resolution to genetic data to be used for research.

“There is no change in how the company retains, manages or protects customer data,” 23andme said in the media release.

This is something that no one planned may happen after the DNA -test

The company spokesman demonstrates what is in the DNA -a 23ndme booth at the Tortstech’s annual genealogical event in Salt -Leik -Sity, Utah, USA, February 28, 2019. (George Frey / Reuters)

The company has survived a shock in recent years. Last November, 23ndme said it was a 40%or more than 200 employees.

Co -founder and CEO Anne Wojciecki has resigned after several unsuccessful applications, Reuters reports but but She said on x What she did it “so I could be in the best position to do the company as an independent participant of the competition.”

23andme reduces 40% of its labor

Participants acquire DNA -kits at the 23andme booth at the annual genealogical event in Torstech in Salt -Leik -Sity, Utah, February 28, 2019. (George Frey / Reuters)

Wojcicki will be replaced by the Joe Selsavage CEO with a temporary basis.

23andme said it provided the debt financing commitment (DIP) about $ 35 million and expects to continue working during the sale process. This is not said whether it had another interest or suggestions.

It listed both assets and estimated liabilities from $ 100 to $ 500 million.

A month before the perestroika, 23andme agreed to pay $ 30 million and give three years of security monitoring to resolve the claim, accusing him that he did not defend a privacy 6.9 million customers whose personal information was provided in A, Data impairment In 2023.

The participant interacts with the 23andme booth at the annual genealogical event Tortstech in Salt -Leik -Sity, Utah, February 28, 2019. (George Frey / Reuters)

“We want to thank our employees for the dedication of the 23andme mission,” said Mark Jensen, chairman and a member of the Special Committee of the Board of Directors. “We strive to support them when we move through the process.”

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“In addition, we strive to continue to store customer data and be transparent about users’ data management, and data privacy will be an important issue in any potential transaction,” he said.

Fox Business “Aislinn Murphy and Reuters contributed to this report.