Attorney General Murrill announces multi-state settlement of bankruptcy claims against 23andMe over genetic data breach
Attorney General Liz Murrill joined a coalition of 42
attorneys general announcing a settlement with the bankruptcy trustee for
23andMe, resolving allegations stemming from a 2023 data breach that
compromised the genetic data of 6.9 million customers worldwide.
23andMe agreed to a $46.75 million class-action settlement
in the bankruptcy to provide relief to affected U.S. consumers who submitted
claims by February 17, 2026.
The settlement also includes $150 million in allowed claims
for states. Due to the finite amount of
funds in the bankruptcy estate and numerous other claims, recovery is limited
to $18 million, which will be paid out of available bankruptcy funds
immediately. Louisiana will receive $258,668.
“Louisianans should never have to worry that their personal
information and genetic data will be exposed because a company failed to
protect it. Companies that collect and profit from sensitive personal
information have a responsibility to safeguard that data, and when they fail,
they will be held accountable,” said Attorney General Liz Murrill.
In October 2023, direct-to-consumer genetic testing company
23andMe announced that it had discovered a data breach in which 6.9 million
consumers were affected, including 68,814 in Louisiana. This data breach
exposed a wide range of data about 23andMe customers, including in some cases
genetic ancestry information, and subsets of this data were subsequently
published for sale on the dark web.
23andMe learned about the breach months after impacted
personal information was publicly available. 23andMe first denied a breach and
then, once it confirmed the breach, blamed consumers for how their accounts
were set up or how passwords were used. 23andMe initially accepted no
responsibility for the credential stuffing breach, which was particularly
egregious considering 23andMe’s partnership with MyHeritage, which itself was
compromised years prior to the breach, exposing thousands of credentials shared
between the websites.
In the immediate aftermath of the data breach, the
Attorneys General formed a multistate investigation and found that 23andMe
engaged in unreasonable data security practices, including, but not limited to:
- Failing to employ
safeguards against credential stuffing attacks, including comparing
passwords against blocklists of known breached passwords or requiring
multifactor authentication;
- Failing to implement
appropriate rate limiting or intrusion prevention;
- Failing to implement
logging and monitoring or other tools likely to detect a data breach;
- Failing to appropriately
investigate and/or address unusual login patterns, including, for example,
a massive spike in login attempts;
- Failing to remediate
known vulnerabilities; and
- Failing to properly
review and test design features.
In March 2025, 23andMe filed for bankruptcy protection, and
states subsequently filed claims related to the data breach investigation. As
part of the bankruptcy proceedings, the assets—notably 23andMe’s consumer
data—were sold to TTAM Research Institute, a non-profit formed by 23andMe
founder and former CEO Anne Wojcicki. The terms of the sale included many
information and data security requirements that likely would have been included
in a settlement with 23andMe had it not filed for bankruptcy. Such terms
included enhanced data security requirements, appropriate risk analysis, the
addition of an Advisory Board, agreeing to be bound by comprehensive privacy
laws without exception, and continuing to offer consumer deletion rights. These
terms will make sure that TTAM Research Institute, now reregistered as 23andMe
Research Institute, will be a safer custodian of genetic data moving forward.
Attorney General Murrill joined the attorneys general of Alaska, Alabama, Arkansas, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Iowa, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, North Carolina, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, and West Virginia in today’s settlement.

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