23ndme, the giant of genetic tests once evaluated in billions, is now browsing the failure of chapter 11 and notifying millions of current customers and ex that could be suitable for submitting compensation requests as part of the renovation process. The company and 11 of its branches, including Lemonaid Health and LprXone, presented bankruptcy protection on March 23 of this year in the eastern district of Missouri. Customers were notified on Sunday they have until July 14 to submit requests for losses suffered.
The failure follows the tumultuous 18 months for 23andme, marked by falling sales, executive departures and a devastating violation of the data that has compromised the sensitive personal information of almost 7 million users. The violation, publicly disclosed in October 2023, exposed the names of customers, years of birth, relationship labels, DNA percentages shared with relatives, ancestors and self-senified places, according to techcrunch. The Fallouts have triggered legal action actions to multiple classes and a wave of mistrust of customers who seriously reduce the activity aimed at consuming the company.
Now, customers who have been affected by this violation – in particular those notified by 23ndme that their information has been compromised between May and October 2023 – can present what is known as a request for a computer security accident. Those who have suffered financial or other damage due to the violation can present a complaint as part of the case of bankruptcy. Customers with other types of unrelated complaints, such as the problems with the results of the DNA tests or the company’s telehealth services, can present a separate complaint pursuant to the package of the general bar date.
The congress also expressed concern about the implications on the privacy of the bankruptcy.
The fall of 23ndme from grace was rapid and his troubles were aggravated by his ambitious but expensive expansion in digital health and telemedicine, which included the acquisition of 400 million dollars of Lemonid health in 2021. Originally he aimed at his time.
An agreement proposed by $ 30 million in a cause of class action related to cyber attacks remains pending due to the bankruptcy procedure. (The lawyers of 23andme say that the solution is under discussion now that the company is in bankruptcy.) Customers who wish to preserve their right to compensation must present a formal proof of the complaint regardless of their participation in the class action.
Techcrunch contacted 23ndme for a comment.
Techcrunch event
Berkeley, ca.
|
June 5th
Book now
