23ndme, the giant of genetic tests once valued in the billions, is now browsing the bankruptcy of Chapter 11 and notifying millions of current and previous clients that can be eligible to present claims as part of the restructuring process. The company and 11 of its subsidiaries, including Lemonaid Health and Lprxone, Presented for bankruptcy protection On March 23 of this year in the Eastern District of Missouri. The clients were alerted on Sunday that they have until July 14 to present claims for incurred losses.
Bankruptcy follows the tumultuous 18 months by 23Andme, marked by the decrease in sales, executive exits and a devastating data violation that committed confidential personal information of almost 7 million users. The violation, publicly revealed in October 2023Names of exposed customers, years of birth, relationship labels, DNA percentages shared with relatives, ancestry reports and self -informed locations, According to TechCrunch. The consequences triggered multiple collective demands and a wave of distrust of the client who severely undermined the company -oriented business.
Now, customers affected by that violation, specifically those notified by 23 to me that their information was compromised between May and October 2023, can present what is known as a CLASSING CLASSANCE INCIDENTS. Those who suffered financial or others due to violation may file a claim as part of the bankruptcy case. Customers with other types of complaints are not related to cyberat General Barr Package.
Congress also has He expressed concern about privacy implications of bankruptcy.
The 23Andme de la Gracia was rapid, and their problems were aggravated by their ambitious but expensive expansion in digital health and telemedicine, which included the $ 400 million Acquisition of Lemonaid Health in 2021. Originally aimed at diversifying the offers of 23andme beyond the Consumer DNA tests, the movements tense the financial resources of 23Andme and failed to offer the growth that the company needed.
A proposed $ 30 million agreement on a related collective claim on cyber attack Stay waiting Due to bankruptcy procedures. (23Andme’s lawyers say the agreement is in dispute now that the company is in bankruptcy). Customers who wish to preserve their right to compensation must present a formal claim test, regardless of their participation in class action.
Techcrunch has contacted 23 Andme to comment.
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