23andMe: States Sue to Block Sale of DNA Data During Bankruptcy Battle
America ı By Jackie Allen
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A Timeline Since 23andMe's Collapse
23andMe filed for Chapter 11 bankruptcy in March 2025, triggering a scramble over the fate of the company’s vast genetic database. In April, the company reassured customers and bidders that any buyer would be required to uphold its privacy standards. In May, Regeneron Pharmaceuticals (NASDAQ: REGN) emerged as the top bidder for 23andMe’s assets in a court-supervised auction. However, earlier in June, former CEO Anne Wojcicki returned with a higher counteroffer, prompting the court to consider a second auction. This revived interest has also reignited scrutiny from regulators and privacy advocates. https://usaherald.com/lawsuits-dismissed-judge-throws-out-justin-baldonis-claims-against-blake-lively-and-ryan-reynolds/Legal and Ethical Concerns
The lawsuit argues that genetic data, unlike other commercial assets, implicates not just the original customer but their family members and even future generations. “This isn’t just about who signed up for a DNA test 10 years ago. It’s about people who never agreed to have their DNA sold and don’t even know they’re part of the dataset,” said a spokesperson from the Missouri Attorney General’s office. Many customers originally submitted their DNA to learn more about ancestry or health predispositions—not expecting it could later become a commodity in a bankruptcy proceeding.Looking Ahead
The outcome of the case may set a precedent for how personal genetic data is treated in future corporate bankruptcies. Privacy advocates, lawmakers, and tech ethicists alike are closely watching developments as the next round of bidding approaches. For further details, see the full coverage by NBC Philadelphia and AP News.
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