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23andMe Parent Company Ordered to Pay $46.75 Million

23andMe Parent Company Ordered to Pay $46.75 Million

Chrome Holding, the parent company of genetic testing firm 23andMe, has been ordered by a U.S. bankruptcy judge to pay $46.75 million in compensation to victims of the 2023 data breach. The order, issued on Tuesday, July 7, includes $14.29 million that had already been distributed. The total sum will be disbursed through Kroll Restructuring Administration to individuals whose data was compromised. Up to 6.9 million people had their data exposed in the breach, though the precise number of recipients for this payout remains unconfirmed.

This development follows 23andMe's Chapter 11 bankruptcy filing in early 2025. The company, which once held a valuation of $6 billion, is still actively selling DNA tests on its website. Last year, Chrome Holding, operating as the TTAM Research Institute, acquired 23andMe for $305 million, outbidding Regeneron Pharmaceuticals. Anne Wojcicki, a co-founder of 23andMe, is associated with Chrome Holding.

The bankruptcy judge's decision does not fully resolve the legal ramifications of the hack. In May, California Attorney General Rob Bonta filed a lawsuit against Chrome Holding. The suit alleges that the company failed to adequately protect customers' sensitive personal and genetic data, including information related to health, genetic predispositions, biological relatives, ancestry, and ethnicity. The lawsuit also claims that 23andMe provided misleading information to customers regarding aspects of the breach.

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