Twenty-seven U.S. states and the District of Columbia have filed a lawsuit in bankruptcy court seeking to stop the sale of personal genetic data by 23andMe without explicit customer consent. The legal challenge comes amid 23andMe’s Chapter 11 bankruptcy proceedings and a proposed $256 million acquisition by Regeneron Pharmaceuticals. The suit argues that biological samples, DNA data, and medical records are too sensitive to be sold like other assets. Oregon Attorney General Dan Rayfield, in a statement, said, “Customers should have the right to control such deeply personal information and it cannot be sold like ordinary property.” The lawsuit contends that individual informed consent is required before any transfer of such data.
Founded in 2006, 23andMe became known for its saliva-based DNA testing kits, used by consumers to explore ancestry and health traits. Despite its early popularity, the company has faced financial struggles and laid off 40% of its staff before filing for bankruptcy in March. Regeneron has stated that it will honor all existing privacy policies and legal obligations. A court-appointed consumer privacy ombudsman is reviewing the proposed sale to assess its impact on data privacy. The case raises significant concerns over the treatment of genetic information during corporate restructuring.
