23andMe Alerts Customers About Bankruptcy and Claims Submission—Deadline for Document Filing is July 14

23andMe, formerly a dominant force in the genetic testing sector valued at over a billion dollars, has officially entered Chapter 11 bankruptcy. The company is notifying its millions of current and former customers about their potential eligibility to file claims during the restructuring phase. On March 23 of this year, 23andMe, alongside 11 subsidiaries, including Lemonaid Health and LPRXOne, sought bankruptcy protection in the Eastern District of Missouri. Customers were informed on Sunday that they have until July 14 to file claims for any incurred losses.

This bankruptcy follows a difficult 18 months for 23andMe, marked by plummeting sales, the exit of key executives, and a significant data breach that compromised sensitive data of nearly 7 million users. The breach, revealed in October 2023, affected personal information such as names, birth years, relationship statuses, DNA sharing rates, ancestry details, and self-reported locations, according to TechCrunch. This incident spurred multiple class action lawsuits and greatly eroded customer trust, severely hampering the company’s operations.

Customers impacted—especially those informed by 23andMe about their data being compromised from May to October 2023—can submit a Cyber Security Incident Claim. Individuals who have experienced financial or other losses due to the breach may submit claims as part of the bankruptcy proceedings. Customers with different concerns, such as issues regarding DNA test results or the company’s telehealth services, can file separate claims under the General Bar Date Package.

There are also growing concerns in Congress regarding privacy implications tied to the bankruptcy.

The swift decline of 23andMe has been worsened by its ambitious yet costly ventures into digital health and telemedicine, particularly the $400 million acquisition of Lemonaid Health in 2021. Although this strategy sought to expand 23andMe’s offerings beyond consumer DNA testing, it ultimately strained financial resources without delivering the anticipated growth.

A proposed $30 million settlement relating to a class action lawsuit concerning the cyberattack is currently on hold due to the bankruptcy proceedings. Legal representatives for 23andMe have stated that the settlement is now contested in light of the bankruptcy. Customers wishing to retain their right to compensation must submit a formal proof of claim, irrespective of their involvement in the class action.

TechCrunch has reached out for further comments from 23andMe.