23andme will have the supervisor appointed by the court of genetic data in bankruptcy

Posted by Dietrich Knauth

New York (Reuters) -The 23ndme G’s Decree Company agreed to allow the supervisor appointed by the court to ensure that the genetic data of the customers remain protected during the company’s bankruptcy, and settled a dispute with several American states.

These states argued that the company did not take data security seriously.

The bankruptcy judge in the United States, Brian Walsh, agreed to the agreement in a court hearing in Saint Louis, Missouri, which asked the appointment of grievances secretary to consumer protection, which will be enabled to review 23andme processing of genetic information for customers and its security policies.

Grievance Secretary will also review any sale of 23andme businesses or data during the company’s bankruptcy, and to submit a report to the court on how to affect any sale of customer data.

23andme initially suggested employing the “customer data representative”, which could have been limited to a limited way to ensure a future sale of the company or its data that complied with the company’s current privacy policies. But a group of more than 25 states objected, saying that 23andme wanted simply employing a person, “this court tells that everything is fine.”

23ndme collected genetic data from 15 million customers who requested the online DNA testing groups and provided the company’s salivary samples. The company said that it will not go through the sale of genetic data that is penetrated, but bankruptcy has attracted the audit of the state lawyer and the legislators who warn that the customer’s data can be sold to non -conscience buyers.

Grievances in consumer protection will have an initial budget of $ 300,000 for their work, with the ability to demand the court for more money if necessary.

23ndme bankruptcy was presented last month, seeking to sell its business after the demand for consumers and violating 2023 data that revealed millions of genetic data to customers.

The company is still negotiating with potential buyers for its business. She hoped to naming a bidder last week to serve as the minimum bidding for other companies to compete in a future auction. But these conversations are still continuing, and have pushed 23ndme to the deadline until April 30.

The founder of 23andme Ann Wagiki also expressed his interest in recovering the company.

During the session, lawyers who represent a category of more than 6 million clients affected by the violation of data raised 2023 concerns about the bankruptcy effect on a $ 30 million settlement that was reached last year. 23andme lawyers said that the value of settling the collective lawsuit is now in a dispute after the company is bankrupt.