- Judge approves a $46.75 million settlement for victims of the 2023 data breach at 23andMe.
- Chrome Holding is required to pay the settlement within five business days to Kroll Restructuring, which will distribute the funds to the victims.
- Nearly seven million customers of 23andMe had their personal information exposed in a 2023 data hack.
- 23andMe initially paid nearly $15 million in response to the breach but later filed for bankruptcy.
- California Attorney General Rob Bonta investigated 23andMe and found that the company failed to take basic steps to protect users' data.
- 23andMe was criticized for not implementing adequate measures to secure sensitive user data prior to the incident.
A California bankruptcy court judge has authorized a $46.75 million settlement for victims of a significant data breach at 23andMe, affecting nearly seven million customers. The ruling, made on Tuesday, mandates that Chrome Holding, which acquired 23andMe post-bankruptcy, disburse the funds within five business days.246
The breach exposed sensitive personal information, including genetic profiles and health-related data, raising concerns about the company's data security practices. The ICO criticized 23andMe for failing to implement adequate measures to protect user data, while California Attorney General Rob Bonta stated that the company did not take basic steps to safeguard its users' information and misled consumers about the breach's severity.
The settlement will first be directed to Kroll Restructuring, which represents the victims, before being distributed to those affected. This payout comes after 23andMe's initial payment of nearly $15 million and subsequent bankruptcy filing, highlighting the ongoing repercussions of the data breach on the company and its customers.
Chrome Holding operates under the name TTAM Research Institute and is led by Anne Wojcicki, a co-founder of 23andMe. The court's decision marks a significant step in addressing the fallout from the breach and compensating those impacted by the incident.
“The settlement covers nearly 7 million customers whose personal information was exposed, including genetic markers related to health and family history. California Attorney General Rob Bonta said the company 'failed to take basic steps to protect users' data' and lied about the breach's severity.”
CBS News
