States Move to Halt 23andMe Sale Over Privacy Concerns About Genetic Data

A coalition of 27 U.S. states and the District of Columbia has filed a lawsuit in bankruptcy court to prevent the sale of 23andMe’s personal genetic data without the informed consent of its customers. The legal action comes as the DNA testing company, currently under Chapter 11 bankruptcy protection, explores a potential acquisition by Regeneron Pharmaceuticals for $256 million.

Oregon Attorney General Dan Rayfield emphasized the sensitive nature of genetic and health data, arguing that such information should not be treated as a commodity. The states assert that customers must have control over their biological data, including DNA, medical history, and health traits, particularly during a corporate sale.

23andMe, known for its consumer DNA test kits and health-related research, has struggled financially since going public in 2021. The company laid off 40% of its workforce earlier this year and filed for bankruptcy in Missouri. Regulators and consumer advocates have raised alarms over whether customer data could be transferred or sold under new ownership.

Regeneron has stated that it intends to honor 23andMe’s existing privacy policies and adhere to legal standards for handling customer data. A consumer privacy ombudsman is reviewing the terms of the sale and is expected to report findings to the court, potentially influencing whether the transaction proceeds.