23andMe Data Deletion Requests Surge After Bankruptcy

23andMe Data Deletion Requests Surge Amidst Bankruptcy

Joseph Selsavage, the interim chief executive of 23andMe, informed legislators on Tuesday that approximately 1.9 million individuals – representing around 15% of their total customer base – have submitted requests for the removal of their genetic information from the company’s systems. These requests followed the company’s filing for bankruptcy protection in March.

Congressional Hearing and Data Security Concerns

Mr. Selsavage’s testimony was delivered at a hearing convened by the House Oversight Committee. Lawmakers are closely examining the proposed sale of 23andMe following a bankruptcy auction. The bankruptcy proceedings raised anxieties regarding the potential for the genetic data of millions of Americans to fall into the possession of a potentially unethical purchaser, leading customers to seek data deletion.

Regeneron's Acquisition Bid

In May, pharmaceutical leader Regeneron emerged as the successful bidder in the court-approved auction. Their offer of $256 million secured the acquisition of 23andMe, including its extensive databases of customer DNA and genetic information.

Regeneron has stated its intention to leverage the 23andMe data to accelerate the identification and development of novel pharmaceutical treatments. The company has also pledged to uphold 23andMe’s existing privacy protocols.

Upcoming Court Review

A federal bankruptcy court is scheduled to review Regeneron’s acquisition proposal for 23andMe later this June.

Recent Data Breach and its Aftermath

23andMe’s bankruptcy follows a significant data breach experienced the previous year. This breach, lasting several months, compromised the sensitive personal and genetic data of 6.9 million customers.

The company attributed the breach to customers’ failure to enable multi-factor authentication. This explanation drew criticism, as it deflected responsibility for its own security shortcomings and delayed breach detection.

State Lawsuits Challenging Data Sale

On Tuesday, a coalition of over two dozen states, including Florida, New York, and Pennsylvania, initiated legal action against 23andMe. The lawsuits challenge the company’s right to sell customer data without obtaining explicit consent from each individual.

The states contend that the sale of data belonging to 23andMe’s 15 million customers requires unambiguous permission.