23andMe Holding Co. is seeking to extend its bankruptcy protections to Canada, asking a U.S. court to authorize its Chief Restructuring Officer to act as foreign representative in Canadian proceedings where the genetic testing company faces multiple class action lawsuits stemming from a massive data breach.
In a motion filed Monday in the U.S. Bankruptcy Court for the Eastern District of Missouri, 23andMe requested court approval to appoint Matthew Kvarda, its Chief Restructuring Officer, as the foreign representative to commence an ancillary proceeding in the Supreme Court of British Columbia. The company aims to have its U.S. Chapter 11 proceedings recognized as a "foreign main proceeding" under Canadian law, which would effectively extend the automatic stay protections to halt litigation in Canada.
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"Given the ongoing nature of the Canadian Lawsuits, and the necessity for Debtors to be afforded the protections of the automatic stay and relief from ongoing litigation, it is necessary that the chapter 11 cases, as well as the orders of this Court entered herein, are recognized in Canada," the company stated in its filing.
The genetic testing and telehealth company filed for Chapter 11 bankruptcy protection on March 23, 2025, following a cybersecurity incident discovered in October 2023, in which a threat actor downloaded unauthorized information relating to approximately seven million customers. This data breach triggered numerous lawsuits against the company, including class actions in Ontario and British Columbia.
According to the court documents, Canadian plaintiffs' attorneys have taken the position that their lawsuits are not subject to the automatic stay that typically halts litigation against U.S. bankruptcy filers. The Canadian court has scheduled a five-day hearing on various motions for the week of June 16, 2025, making the recognition request particularly time-sensitive for 23andMe.
"The requested relief is particularly warranted here where Canadian Plaintiffs' Counsel have taken the position that the Canadian Lawsuits are not subject to the automatic stay," the company explained in its motion.
If approved, Kvarda would commence proceedings under Canada's Companies' Creditors Arrangement Act (CCAA) and seek to have the U.S. bankruptcy proceedings recognized, which would enforce the automatic stay and give effect to other U.S. court orders throughout Canada. The company also intends to propose that Alvarez & Marsal Canada Inc. be appointed by the Canadian Court as an information officer to serve as a liaison between the Canadian court and the U.S. bankruptcy proceedings.
23andMe described itself in the filing as "a leading human genetics and telehealth company with a mission to help people access, understand, and benefit from the human genome." The company noted it "pioneered direct access to genetic information as the only company with multiple FDA clearances for genetic health reports" and operates a national online doctor's office through its Lemonaid Health telehealth platform.
A hearing on the motion is scheduled for May 6, 2025, with an objection deadline of April 29, 2025. The case is being jointly administered with 23andMe's subsidiary companies, which include 23andMe, Inc., 23andMe Pharmacy Holdings, Inc., Lemonaid Community Pharmacy, Inc., and several other related entities.
The company is represented by Carmody MacDonald P.C. and Paul, Weiss, Rifkind, Wharton & Garrison LLP in the bankruptcy proceedings.
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 9 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.