Judge Approves $46.75 Million Payout for 23andMe Data Breach Victims
U.S. Bankruptcy Judge Brian Walsh in St. Louis said the settlement was fair and equitable, and in the best interest of a trust overseen by the company’s bankruptcy administrator.
Related: Claimants of 23andMe Data Breach to Get $46.75M in Settlement Deal
The settlement will be reduced by $14.29 million previously disbursed in connection with the breach, making the total additional payout $32.46 million.
- Based in Palo Alto, California, 23andMe filed for protection from creditors in March 2025.
- It cited the data breach, related litigation, and both increased competition and falling demand for genetic testing products as reasons for its Chapter 11 filing.
- Last July, TTAM Research Institute, a nonprofit controlled by 23andMe co-founder Anne Wojcicki, bought 23andMe’s assets for $305 million.
- California Attorney General Rob Bonta is also suing over the breach, accusing 23andMe of ignoring warnings that its systems were compromised and downplaying the breach’s severity.
- Bonta is seeking potentially millions of dollars in civil fines against Chrome Holding Co, the legal name of 23andMe, in San Francisco Superior Court.
- Walsh has yet to rule on the bankruptcy administrator’s motion to block California’s lawsuit.
- In a June 6 filing, Bonta said the U.S. Congress did not give bankruptcy judges power to deprive state courts of jurisdiction over state law-based enforcement actions, and allow bankruptcy courts to become “a haven for wrongdoers.”
- Bonta’s office did not immediately respond to requests for additional comment.
(Reporting by Stempel in New York; Editing by Franklin Paul and Nia Williams)
Copyright 2026 Reuters. Click for restrictions.
Popular Today
- US Decides Against Renewing USMCA, Shifting to Rolling Talks
- AI’s Impact: Tech and Finance Sectors Losing 28,000 Jobs Monthly
- United Airlines Must Face Lawsuit Over ‘Window Seats’ That Lack Windows
- Changes in Policy Language, Provisions Suppressing Claim Volume, Report Shows
Popular This Month