Penalty Amount
$662,649
Consumers Affected
6,900,000
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.
The settlement includes $150 million in allowed claims for states, with immediate recovery of $18 million from bankruptcy funds. Virginia receives $662,649. 23andMe also agreed to a $46.75 million class-action settlement for affected U.S. consumers. The sale of assets to TTAM Research Institute (now 23andMe Research Institute) includes enhanced data security requirements, risk analysis, an Advisory Board, binding comprehensive privacy laws, and continued consumer deletion rights.
In-house legal teams should review vendor agreements with companies handling sensitive personal data, particularly genetic or health data, to ensure they include robust data security obligations such as multifactor authentication, rate limiting, intrusion prevention, and logging/monitoring requirements. Customer agreements should be updated to include clear breach notification procedures, data deletion rights, and compliance with state-specific genetic data privacy laws like Virginia's Genetic Data Privacy law. Employee agreements involving access to sensitive data should also incorporate security training and accountability measures.
Entity
23andMe
Industry
Technology"23andMe"
"$662,649"
"data breach that compromised the genetic data of nearly 7 million customers worldwide"
"Virginia Code § 59.1-597(1)"
"6.9 million consumers"
"42 attorneys general"
$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
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.
$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.
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.
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.