DNA testing company 23andMe files for bankruptcy, founder and CEO resigns
Published in Business News
23andMe, the DNA testing company once valued at $6 billion, filed for bankruptcy Monday, while its founder and CEO Anne Wojcicki resigned her position.
More than 15 million people submitted DNA information to 23andMe during its 18 years in business, and Monday’s announcement threw into question what would happen to their sensitive personal data.
Unsurprisingly, the company insisted people had nothing to worry about as it undergoes the Chapter 11 bankruptcy process, hoping for a sale.
“We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction,” interim CEO Mark Jensen said in a press release.
On Friday, three days before the filing, California Attorney General Rob Bonta issued a warning to 23andMe users to delete their data and provided a step-by-step guide. Bonta noted the company, which is based in California, had been struggling for months.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” Bonta said in his own press release.
23andMe launched in 2006 under the leadership of Wojcicki. She remained in control of the company until Monday, when she resigned her position as CEO.
Wojcicki attempted to buy 23andMe to take it private, but her various bids were rejected by the company’s directors. In a social media post, Wojcicki said she resigned as CEO because she plans to be part of the bidding process during the company’s bankruptcy.
“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics,” she wrote.
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