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States Move to Block Sale of 23andMe Genetic Data as Bankruptcy Bids Continue

Attorneys general have filed suit to halt the auction while a court-appointed ombudsman assesses whether customer consent will be honored.

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Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021. Consumer DNA-testing company 23andMe Inc. is in talks to go public through a roughly $4 billion deal with VG Acquisition Corp., a special purpose acquisition company founded by billionaire Richard Branson, according to people familiar with the matter. Photographer: David Paul Morris/Bloomberg via Getty Images
FILE - A 23andMe saliva collection kit is shown on March 25, 2025, in Oakland, Calif. (AP Photo/Barbara Ortutay, File)
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Overview

  • Twenty-seven states and the District of Columbia have sued in bankruptcy court to prevent 23andMe from selling genetic data without the express consent of roughly 15 million users.
  • 23andMe entered Chapter 11 in March and its proposed sale of assets, including DNA profiles and health records, awaits judge approval.
  • Regeneron Pharmaceuticals has offered $256 million for the company while co-founder Anne Wojcicki’s TTAM Research Institute has lodged a $305 million bid after the auction was reopened.
  • A court-appointed independent privacy ombudsman is reviewing how the sale could affect consumer data protections and will report back to the judge.
  • Since the bankruptcy filing, about 1.9 million customers have requested deletion of their genetic information, and users retain the right to erase their data under 23andMe’s policy.