23andMe clients notified of chapter and potential claims — deadline to file is July 14

23andMe, the genetic testing big as soon as valued within the billions, is now navigating Chapter 11 chapter and notifying tens of millions of present and former clients that they might be eligible to file claims as a part of the restructuring course of. The firm and 11 of its subsidiaries, together with Lemonaid Health and LPRXOne, filed for chapter safety on March 23 of this yr within the Eastern District of Missouri. Customers had been alerted Sunday that they’ve till July 14 to file claims for losses incurred.

The chapter follows a tumultuous 18 months for 23andMe, marked by declining gross sales, government departures, and a devastating information breach that compromised delicate private data of practically 7 million customers. The breach, publicly disclosed in October 2023, uncovered clients’ names, beginning years, relationship labels, percentages of DNA shared with kin, ancestry experiences, and self-reported places, in line with TechCrunch. The fallout triggered a number of class motion lawsuits and a wave of buyer distrust that severely undercut the corporate’s consumer-facing enterprise.

Now, clients who had been affected by that breach — particularly these notified by 23andMe that their data was compromised between May and October 2023 — could file what is called a Cyber Security Incident Claim. Those who suffered monetary or different damages because of the breach can submit a declare as a part of the chapter case. Customers with different sorts of grievances unrelated to the cyberattack, reminiscent of points with DNA take a look at outcomes or the corporate’s telehealth providers, could submit a separate declare below the General Bar Date Package.

Congress has additionally expressed issues in regards to the privateness implications of the chapter.

23andMe’s fall from grace was swift, and its woes had been compounded by its bold however expensive enlargement into digital well being and telemedicine, which included the $400 million acquisition of Lemonaid Health in 2021. Originally aimed toward diversifying 23andMe’s choices past client DNA testing, the strikes strained 23andMe’s monetary assets and did not ship the expansion the corporate wanted.

A proposed $30 million settlement in a associated class motion lawsuit over the cyberattack stays on maintain because of the chapter proceedings. (23andMe’s attorneys say the settlement is in dispute now that the corporate is in chapter.) Customers who wish to protect their proper to compensation should submit a proper proof of declare no matter their participation within the class motion.

TechCrunch has reached out to 23andMe for remark.