23andMe is close to settling a proposed class action lawsuit against the company on a data breach It stole the data of 6.9 million users. According to preliminary settlement documents, the DNA testing company agreed to pay $30 million to affected customers and to conduct annual computer scans and cybersecurity audits for three years. A website will be established to notify those eligible to receive a portion of the settlement fund and to facilitate payments. Affected users will also be sent a link to delete all their data from the service and will be able to sign up for three years of Privacy & Medical Shield + Genetic Monitoring free of charge. A judge still has to approve those terms.
In October 2023, the company accepted The DNA Relatives profile information of approximately 5.5 million customers and the Family Tree profile information of 1.4 million DNA Relative participants were leaked. It later revealed in a legal filing that bad actors began accessing customer accounts in late April 2023 and gained access to its systems by September of that year. The hackers reportedly used a technique called credential stuffing, which uses previously compromised login credentials, to access customer accounts.
The breach led to several class-action lawsuits filed against the company, including one that accused 23andMe of failing to notify plaintiffs. specifically targeted Because of his Chinese and Ashkenazi Jewish heritage. in the year settlement agreement [PDF] for the consolidated lawsuit, 23andMe stated that it “denies the allegations and allegations set forth in the Complaint” and denies that it “failed to adequately protect the Personal Information of its consumers and users.”
according to Reuters23andMe describes its financial situation as “extremely uncertain.” In it financial statement For fiscal 2024, it revealed total revenue of $220 million, down 27 percent from $299 million a year ago. A large portion of the settlement money will come from cyber insurance, but the company expects to cover $25 million of the $30 million.
