California will receive a $6 million settlement payment from 23andMe's bankruptcy, as announced by Attorney General Rob Bonta on Monday. This settlement resolves the state's legal claims related to a 2023 data breach that exposed the genetic and personal information of 6.9 million customers, including more than 855,000 Californians.
Background
California had previously attempted to block the $305 million sale of 23andMe assets to TTAM Research Institute, a nonprofit controlled by 23andMe co-founder Anne Wojcicki. The state argued that the bankruptcy sale violated California’s Genetic Information Privacy Act and claimed that consumers did not provide express consent for the sale.
Legal Developments
In March 2025, 23andMe filed for bankruptcy, seeking to sell its business at auction following a decline in demand and legal issues stemming from the data breach. A US bankruptcy judge ruled against California’s objections to the sale, stating that the state could not sue to recover funds from the bankrupt company’s successor. California lost an appeal over the sale in federal district court and agreed to drop further appeals as part of the settlement.
