Texas Attorney General Ken Paxton filed a lawsuit in the 23andMe bankruptcy case to prevent the sale of Texans' genetic data without proper consent. The action seeks to confirm Texans' property rights over their genetic information under the Texas Data Privacy and Security Act and the Texas Direct-to-Consumer Genetic Testing Act. The AG argues that 23andMe's proposed asset sale would violate Texas law requiring separate express consent for disclosure of genetic information.
The judgment sought would confirm Texans' property rights over their genetic data and order 23andMe to comply with Texas privacy laws, including obtaining separate express consent before disclosing genetic information and honoring consumer requests for data deletion.
In-house legal teams should review all vendor agreements involving the collection, processing, or sale of genetic, health, or consumer personal data, particularly with genetic testing or biotechnology vendors. Clauses related to data sale, transfer, or disclosure must require separate express consent from consumers prior to any transfer, especially in bankruptcy or asset sale scenarios. Contracts should also explicitly outline consumer rights to data deletion and sample destruction, and require vendors to comply with applicable state genetic data privacy laws, including the Texas Direct-to-Consumer Genetic Testing Act and Texas Data Privacy and Security Act. Additionally, teams should ensure contracts include provisions requiring vendors to notify consumers and obtain consent before any change in data ownership, such as through a merger, acquisition, or bankruptcy sale.
Entity
23andMe
Industry
Healthcare"23andMe, a company offering direct-to-consumer genetic testing, recently filed for Chapter 11 bankruptcy in the Eastern District of Missouri."
"under the Texas Direct-to-Consumer Genetic Testing Act and the Texas Data Privacy and Security Act"
"23andMe sought to sell Texans’ private genetic information, health information, and other personally identifiable information to a future purchaser of the company's assets."
"Texas law protects against the unauthorized sale of genetic information, and companies must obtain Texans’ separate express consent to sell, transfer, or otherwise disclose their genetic information to any potential buyers."
"Attorney General Ken Paxton has filed suit in the ongoing 23andMe bankruptcy case"
"Texas’s strong data privacy laws grant consumers property rights to their genetic information"
$663K
Attorney General Jay Jones joined 42 attorneys general in a multistate settlement with 23andMe's bankruptcy trustee over a 2023 data breach that compromised genetic data of nearly 7 million customers. The settlement includes $150 million in allowed claims, with immediate recovery of $18 million from bankruptcy funds, of which Virginia receives $662,649. The settlement also requires enhanced data security measures and consumer protections for the new entity, 23andMe Research Institute.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
$18.0M
New York Attorney General Letitia James and a bipartisan coalition of 42 other attorneys general secured an $18 million settlement from genetic testing company 23andMe for failing to protect customers' private genetic data. The October 2023 data breach exposed sensitive genetic information of 6.9 million consumers, including 305,245 in New York, with some data published for sale on the dark web. The settlement includes monetary penalties and new data protection requirements for the company and its successor, 23andMe Research Institute.
$18.0M
Attorney General William Tong led a coalition of 42 attorneys general in a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the new entity holding the data.
$18.0M
A coalition of 42 state attorneys general settled bankruptcy claims against 23andMe following a 2023 data breach that compromised genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the successor entity, 23andMe Research Institute.
Connecticut Attorney General William Tong submitted testimony in support of genetic privacy legislation that would grant residents exclusive control over their DNA and genetic data. The legislation is inspired by his office's investigation into 23andMe's data breach affecting over six million customers and the company's subsequent bankruptcy. The bill requires express consent for DNA use, imposes security measures, and prohibits marketing use of DNA.