A coalition of attorneys general from 27 states and the District of Columbia has filed a lawsuit against 23andMe.

The litigation is aiming to halt the bankrupt company’s efforts to sell sensitive genetic data from millions of customers to a third party. 

The case, filed in the U.S. Bankruptcy Court for the Eastern District of Missouri, raises urgent privacy concerns over the sale of data without explicit individual consent.

“This exclusively personal data carries with it significant, sensitive information about others who share DNA and/or familial relationships,” the complaint states. “The magnitude of the data in this proposed sale stretches far beyond the 23andMe consumers.”

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.

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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.