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23andMe data breach victims to share $46.75 million payout

Created at 11 Jun · 9:46 PM1 source↑ Market-relevant
IN SHORT

Victims of a 2023 data breach at 23andMe are set to receive $46.75 million under a plan proposed by the company's bankruptcy administrator. The payout aims to be an equitable outcome, avoiding further litigation and reflecting the company's financial state.

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Key Numbers

$46.75 milliontotal payout for data breach victims
$3.25 millionbelow maximum authorized payout
$14.29 millionpreviously disbursed for breach
$32.46 millionadditional payout amount
6.9 millionU.S. customers affected by breach
255,860+claims resolved
March 2025date of bankruptcy filing
$305 millionasset purchase price by TTAM Research Institute
$30 million to $50 millionpreviously approved fund range for victims

Who's Involved

23andMe
genetic testing company facing bankruptcy and data breach litigation
Bankruptcy Administrator
proposed the $46.75 million payout plan for breach victims
Brian Walsh
bankruptcy judge overseeing the Chapter 11 case
Rob Bonta
California Attorney General pursuing separate lawsuit
Anne Wojcicki
co-founder of 23andMe, controls TTAM Research Institute
TTAM Research Institute
nonprofit that bought 23andMe's assets

↳ Why This Matters

The proposed payout offers a resolution for victims of a significant data breach, while also highlighting the financial fallout and ongoing legal challenges faced by 23andMe as it navigates bankruptcy.

Key facts

  • Victims of the 2023 23andMe data breach will share $46.75 million.
  • The payout plan was proposed by the company's bankruptcy administrator.
  • The proposed amount is $3.25 million less than the maximum authorized by the judge.
  • The breach affected an estimated 6.9 million U.S. customers.
  • 23andMe filed for Chapter 11 bankruptcy in March 2025.
  • California's Attorney General is seeking civil fines in a separate lawsuit.

Victims of a 2023 data breach at 23andMe are slated to receive $46.75 million under a plan put forth by the genetic testing company's bankruptcy administrator, according to a court filing.

The administrator described the proposed payout as an "equitable outcome" that would avoid further litigation and align with the company's financial condition. The amount is $3.25 million below the maximum authorized by the judge overseeing the Chapter 11 case. After accounting for $14.29 million previously disbursed, the additional payout to victims will total $32.46 million.

The breach exposed genetic and other personal information of an estimated 6.9 million U.S. customers. While over 255,860 claims have been resolved, thousands remain pending.

Based in Palo Alto, California, 23andMe, now legally known as Chrome Holding Co., filed for bankruptcy protection in March 2025. The company cited the data breach, related litigation, increased competition, and declining demand for its products as reasons for its financial distress.

Last July, TTAM Research Institute, a nonprofit controlled by 23andMe co-founder Anne Wojcicki, acquired the company's assets for $305 million.

Separately, California Attorney General Rob Bonta filed a lawsuit last month, alleging 23andMe ignored warnings about compromised systems and downplayed the breach's severity. Bonta is seeking potentially millions in civil fines, but the bankruptcy judge has yet to rule on whether the state can proceed with its case. The judge had previously approved a victim fund ranging from $30 million to $50 million in January.

Frequently asked questions

The bankruptcy administrator has proposed a total payout of $46.75 million for victims of the 2023 data breach.

An estimated 6.9 million U.S. customers had their genetic and other personal information exposed in the breach.

23andMe filed for Chapter 11 bankruptcy protection in March 2025.

Yes, California's Attorney General is pursuing a lawsuit seeking civil fines, alleging the company ignored warnings and downplayed the breach's severity.

What Happens Next

01The bankruptcy court must approve the proposed payout plan.
02The bankruptcy judge will decide whether California can pursue its separate lawsuit.

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Cadence

How It Developed

A bankruptcy administrator proposed a $46.75 million payout for 23andMe data breach victims.
The proposed payout is $3.25 million below the maximum authorized by the judge.
The total additional payout will be $32.46 million after accounting for prior disbursements.
The breach exposed genetic and personal information of an estimated 6.9 million U.S. customers.
andMe filed for Chapter 11 bankruptcy protection in March 2025.
TTAM Research Institute purchased 23andMe's assets for $305 million in July.
California's Attorney General is pursuing a lawsuit seeking civil fines against 23andMe.
The bankruptcy judge has not yet decided on the state's lawsuit.

Sources

T1
23andMe data breach victims deserve $46.75 million payout, bankruptcy administrator saysReuters via PiQSuite

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