23AndMe customer notified of bankruptcy and potential claims – file deadline is July 14th

23AndMe, a once-valued genetic testing giant, has navigated Chapter 11 bankruptcy, informing millions of current and former clients that they may be eligible to file claims as part of the restructuring process. The companies, including Lemonaid Health and LPRXone, and their 11 subsidiaries filed for bankruptcy protection in the Eastern Missouri region on March 23rd of this year. The customer was warned on Sunday to file a claim for losses that occurred until July 14th.

Bankruptcy is marked by a turbulent 18 months of 23andMe, and is marked by a decline in sales, execution departures and a catastrophic data breaches that undermine the sensitive personal information of nearly 7 million users. According to TechCrunch, the violation published in October 2023 exposed the customer’s name, birth year, relationship label, relative, ancestor reporting, location of self-reports and percentage of DNA shared. The fallout has caused multiple class action lawsuits and a wave of mistrust among customers that have seriously weakened the company’s consumer business.

Currently, customers affected by the violation, specifically those who have been notified of information breach between May and October 2023 by 23andMe, can submit what is known as a cybersecurity incident claim. Anyone suffering financial or other damages from a violation can file a claim as part of a bankruptcy case. Customers with other types of complaints not related to cyberattacks, such as DNA test results or company telehealth services issues, can file another claim based on the date package in the general bar.

Congress has also expressed concern about the privacy implications of bankruptcy.

The fall from the bounty of 23Andme was quick, and its misery was exacerbated by its ambitious but costly digital health and telemedicine expansion, including Lemonade Health’s $400 million acquisition in 2021. Originally, the company aimed to diversify its 23andMe offerings beyond consumer DNA testing, and lost 23andme’s funding, which was needed.

The bankruptcy proceedings pending a $30 million settlement proposed in a related class action lawsuit against a cyberattack. (23Andme’s attorney says the settlement is in opposition to the company’s bankruptcy.) Clients who want to maintain the right to compensation must submit proof of formal claims, regardless of participation in a class action lawsuit.

TechCrunch contacted 23andMe for comment.