23andMe Holding Co. and its affiliated companies filed a statement with the U.S. Bankruptcy Court on Monday reaffirming their commitment to protect customer genetic data and personally identifiable information during their ongoing Chapter 11 bankruptcy proceedings, while acknowledging technical issues that hampered customers' attempts to delete their accounts.
In the three-page document submitted to the United States Bankruptcy Court for the Eastern District of Missouri, the genetic testing company sought to reassure customers that their personal information remains secure despite the company's financial restructuring. The statement comes amid heightened consumer concern about the fate of sensitive genetic data held by the company.
"The Debtors remain steadfast in their commitment to be responsible stewards of their customers' personally identifiable information and genetic data," the company stated in its filing. 23andMe emphasized that it "has neither changed nor sought to modify their existing privacy statement and terms of service as result of the commencement of these chapter 11 cases."
The bankruptcy filing, which covers 23andMe Holding Co. and 11 affiliated entities, triggered a surge in traffic to the company's website as concerned customers attempted to access and delete their accounts. This increased volume led to technical difficulties and delays in processing deletion requests, according to the company.
"The Debtors understand that certain customers have experienced delays in seeking to delete their accounts," the statement acknowledged. "The news of the Debtors' chapter 11 cases caused an increase in traffic to the Debtors' website and deletion requests, which made it difficult for some customers to access Debtors' website, and which has also resulted in delays in the Debtors' ability to provide customer care due to the increase in call volume."
The company insisted it has not deliberately blocked any deletion requests and outlined steps it has taken to address these technical issues, including deploying engineering teams to resolve website problems, working with external entities on email delivery issues, and increasing call center capacity.
Addressing concerns about potential data sales in bankruptcy, 23andMe provided four reassurances: customer data remains protected; customer access to data is unchanged; privacy policies will remain in place for any asset sale; and any transaction involving customer data will require bankruptcy court approval along with applicable regulatory approvals, including potential review by antitrust authorities and the Committee on Foreign Investment in the United States (CFIUS).
The company emphasized that any buyer in a potential sale would be required to comply with 23andMe's privacy policies and applicable law regarding customer data, including obtaining required consumer consents for any future policy changes.
The statement also referenced 23andMe's recent motion to appoint an independent customer data representative (Docket No. 169), characterizing it as reflecting "their continued commitment to the appropriate treatment and protection of Customer Data."
The bankruptcy case (No. 25-40976-357) is proceeding in the Eastern District of Missouri under joint administration. The debtors are represented by Thomas H. Riske, Robert E. Eggmann, and Nathan R. Wallace of Carmody MacDonald P.C. in St. Louis, along with Paul M. Basta, Christopher Hopkins, Jessica I. Choi, and Grace C. Hotz of Paul, Weiss, Rifkind, Wharton & Garrison LLP in New York.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 3 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.