A bankruptcy court is set to review TTAM’s proposed acquisition of 23andMe next week, a deal that awaits judicial approval.
Several U.S. states have raised concerns regarding the potential transfer of customer genetic data to a new entity, filing objections and lawsuits in response. However, these issues may be less pressing due to the continued involvement of the company’s former CEO, Anne Wojcicki.
An expert appointed by the court highlighted data privacy issues associated with the sale in a report submitted on Wednesday. This scrutiny comes in light of a significant data breach in 2023, which occurred under Wojcicki’s leadership and impacted 7 million customer accounts. Ongoing litigation related to this breach is expected to be covered by the bankruptcy estate, using proceeds from the successful bid to settle claims.
Wojcicki, who was previously married to Google co-founder Sergey Brin, took 23andMe public in 2021 via a merger with a special purpose acquisition company (SPAC) backed by Richard Branson, achieving a market capitalization of nearly $6 billion shortly after.
Despite this initial success, 23andMe has struggled with declining revenues, failing to expand beyond its core genetic testing services, which offer analyses of customers’ saliva samples for health insights and ancestry research.
Prior to the bankruptcy filing, Wojcicki had proposed a bid of 40 cents per share for the company.
Currently trading over-the-counter, shares of 23andMe have surged to $5.49 amid optimism regarding the company’s recovery and the resolution of ongoing legal challenges.
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