Update on 23andMe Data Breach Settlement

Quick Take

• 23andMe, now operating as Chrome Holding Co., proposes an additional $2.5 million to its data-breach settlement, lifting that pool to $9 million.
• The amendment extends coverage to roughly 2,600 more customers affected by the 2023 genetic-data breach.
• Total potential payouts tied to the bankruptcy case could reach up to $86.5 million, pending court approval.

Key Facts

• Company: 23andMe Holding Co. (renamed Chrome Holding Co.) in Chapter 11 proceedings.
• Incident: 2023 breach exposed DNA profiles of about 7 million users.
• Existing settlement framework: Approximately $30 million allocated across multiple claimant groups.
• Latest amendment: Extra $2.5 million raises the arbitration-claimant fund to US$9 million and broadens eligibility by 2,600 individuals.
• Maximum recovery: Up to US$86.5 million across all breach-related agreements, subject to court sign-off.

Background

The 2023 breach prompted a series of lawsuits and arbitration claims. Facing mounting liabilities, the company entered Chapter 11 and negotiated a multi-tiered settlement structure. The newly added funds are intended to secure wider claimant support and reduce litigation risk during plan confirmation.

Timeline

• 2023: Breach disclosed; personal and genetic data for roughly 7 million customers compromised.
• Early 2024: Company outlines a $30 million settlement while under bankruptcy protection.
• June 2024: Proposed $2.5 million increase announced, bringing one settlement pool to US$9 million.
• Next step: Bankruptcy court will review the amended deal during plan confirmation (hearing date pending).

What’s Next

If the court approves the revised agreement, eligible customers will receive formal notice explaining claim procedures and expected payment timelines. The company anticipates that the enhanced settlement will help advance its broader reorganization plan.

Official Source

Further details are available in a video briefing: Watch the TikTok overview ↗