Chrome Holding Co., formerly 23andMe, reached a $6 million settlement to resolve allegations that the genetic testing company failed to protect personal information and genetic data of customers in a 2023 data breach.
The 2023 data breach affected nearly 7 million 23andMe customers nationwide, including more than 855,000 Californians, according to the California DOJ, which launched an investigation that year.
The settlement with California Attorney General Rob Bonta is pending court approval.
Related: California Cannot Seek Damages From 23andMe Successor Over 2023 Data Breach
The agreement also resolves an appeal by the California DOJ over the sale of genetic information and biological samples during 23andMe’s bankruptcy proceedings without customers’ consent. Affected consumers have the right to request deletion of their information and destruction of their samples.
San Francisco-based 23andMe was a direct-to-consumer genetic testing company. Customers submitted saliva samples for DNA analysis, and the company stored genetic information to provide reports on ancestry, ethnicity and genetic health. The company filed for bankruptcy in 2025 and sold certain assets, including genetic data and biological samples, to TTAM Research Institute, a nonprofit established by the company’s co-founder and former CEO.
The California DOJ alleged the sale violated the state’s Genetic Information Privacy Act, which requires explicit consent of customers before the sale or transfer of genetic information and biological samples.
The objection was denied by both the bankruptcy and district courts, setting the stage for the appeal resolved by the settlement.
Separately, the California DOJ sued Chrome Holding Co., 23andMe’s successor, in state court, alleging the company’s data security practices contributed to the 2023 breach. The lawsuit also alleged that the company made misrepresentations that misled customers and the public.
The $6 million settlement resolves the pending claims between the company and the state. The settlement agreement was filed in U.S. Bankruptcy Court in the Eastern District of Missouri.
Topics California Cyber
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