OAN Staff Abril Elfi
10:39 AM – Monday, March 24, 2025
Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection, and the company’s CEO Anne Wojcicki has stepped down from her position.
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On Sunday, the company filed for Chapter 11 bankruptcy protection in a federal court in Missouri.
Wojcicki resigned from her role as CEO immediately, though she noted that she will still remain as a member of the board.
Joseph Selsavage, 23andMe’s chief financial and accounting officer, will serve as interim CEO — according to a filing with the U.S. Securities and Exchange Commission.
“We have had many successes but I equally take accountability for the challenges we have today,” Wojcicki wrote in a post on X. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”
The company, which was founded in 2006, vowed to help customers learn more information about their ancestry through genetic testing via saliva-based kits.
However, many customers had raised concerns regarding how their personal data would be handled once the company was sold, or if it were to be hacked. Nevertheless, cyber criminals eventually did gain access to 6.9 million records when the company was hacked in October 2023, the BBC reported.
23andMe agreed to pay $30 million and provide three years of security monitoring to settle their lawsuit.
Attorney General Rob Bonta (D-Calif.) issued a “consumer alert” regarding the “trove of sensitive consumer data 23andMe has amassed.” It states that customers have the right to demand that the company delete their genetic data, destroy their test samples, and revoke permission for genetic data to be used for research.
“There are no changes to the way the Company stores, manages, or protects customer data,” 23andMe said in a media release.
The company stated that it secured a debtor-in-possession (DIP) financing commitment for about $35 million. 23andMe also added that they expect to continue operating during the sale process. According to the filing, the company has between $100 million to $500 million in estimated assets, as well as between $100 million and $500 million in estimated liabilities.
If 23andMe’s plan to sell their assets through the bankruptcy filing is approved, the company will “actively solicit qualified bids” over a 45-day process.
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