23andMe customers notified of bankruptcy and potential claims —deadline to file is July 14

23andMe, the familial investigating elephantine erstwhile valued successful the billions, is present navigating Chapter 11 bankruptcy and notifying millions of existent and erstwhile customers that they whitethorn beryllium eligible to record claims arsenic portion of the restructuring process. The institution and 11 of its subsidiaries, including Lemonaid Health and LPRXOne, filed for bankruptcy protection connected March 23 of this twelvemonth successful the Eastern District of Missouri. Customers were alerted Sunday that they person until July 14 to record claims for losses incurred.

The bankruptcy follows a tumultuous 18 months for 23andMe, marked by declining sales, enforcement departures, and a devastating information breach that compromised delicate idiosyncratic accusation of astir 7 cardinal users. The breach, publically disclosed successful October 2023, exposed customers’ names, commencement years, narration labels, percentages of DNA shared with relatives, ancestry reports, and self-reported locations, according to TechCrunch. The fallout triggered aggregate people enactment lawsuits and a question of lawsuit mistrust that severely undercut the company’s consumer-facing business.

Now, customers who were affected by that breach — specifically those notified by 23andMe that their accusation was compromised betwixt May and October 2023 — whitethorn record what is known arsenic a Cyber Security Incident Claim. Those who suffered fiscal oregon different damages owed to the breach tin taxable a assertion arsenic portion of the bankruptcy case. Customers with different types of grievances unrelated to the cyberattack, specified arsenic issues with DNA trial results oregon the company’s telehealth services, whitethorn taxable a abstracted assertion nether the General Bar Date Package.

23andMe’s autumn from grace was swift, and its woes were compounded by its ambitious but costly enlargement into integer wellness and telemedicine, which included the $400 million acquisition of Lemonaid Health successful 2021. Originally aimed astatine diversifying 23andMe’s offerings beyond user DNA testing, the moves strained 23andMe’s fiscal resources and failed to present the maturation the institution needed.

A projected $30 cardinal colony successful a related people enactment suit implicit the cyberattack remains connected hold owed to the bankruptcy proceedings. (23andMe’s attorneys accidental the colony is successful quality present that the institution is successful bankruptcy.) Customers who privation to sphere their close to compensation indispensable taxable a ceremonial impervious of assertion careless of their information successful the people action.

TechCrunch has reached retired to 23andMe for comment.