HARRISBURG, PA — A federal bankruptcy court has approved the sale of genetic testing company 23andMe to the newly formed TTAM Research Institute, a non-profit medical research organization created by 23andMe founder and CEO Ann Wojcicki. The $305 million sale is set to address significant consumer privacy concerns raised during the bankruptcy proceedings.
Attorney General Dave Sunday announced his support for the agreement, which ensures that sensitive consumer genetic data will remain protected. Earlier this month, Sunday formally objected to any sale of 23andMe that could jeopardize the privacy of millions of consumers, including Pennsylvanians. “I am relieved and encouraged that this potential sale will safeguard very personal data that Pennsylvanians and consumers nationwide wish to keep private,” Sunday said. He also urged consumers to independently review whether they want to retain or delete their data from 23andMe.
Key measures included under the terms of the sale are aimed at reinforcing data security and protecting consumer rights:
- No data transfer – Genetic data and privacy protections will remain under the current policies and management, with no transfer of consumer DNA.
- Consumer control – TTAM will maintain mechanisms for users to permanently delete their data, and new systems will ensure deletion requests are honored and verifiable by state regulators.
- Cybersecurity breach relief – TTAM will allocate part of its bid to compensate the 7 million individuals affected by 23andMe’s 2023 data breach.
- Focus on research – Operating as a non-profit, TTAM aims to freely collaborate with public research institutions to advance medical studies with consumer consent.
The sale approval on June 27 follows rigorous negotiations led by a coalition of state Attorneys General, who argued that sensitive consumer DNA data should not be treated as a standard bankruptcy asset. The coalition endorsed TTAM’s proposal, recognizing its commitment to privacy and its potential to provide uninterrupted service for existing consumers.
Attorney General Sunday emphasized the importance of ongoing oversight. “The Office of Attorney General continues to monitor this transition closely to ensure consumers’ privacy rights are protected,” he noted.
With assurances in place for data security and enhanced privacy measures, the sale is considered a step forward in addressing consumer concerns while facilitating continued medical research.
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