Latest news with #Wojcicki
Yahoo
4 days ago
- Business
- Yahoo
Anne Wojcicki's bid to buy back 23andMe may not end legal fight over DNA customer data
Anne Wojcicki's winning bid to reclaim control of 23andMe (MEHCQ) doesn't necessarily end the fight over what happens to the DNA of 15 million people collected by the bankrupt consumer genomics company. A nonprofit controlled by Wojcicki, TTAM Research Institute, has outbid large-cap drugmaker Regeneron (REGN) amid mounting opposition to a proposed sale. Wojcicki was the co-founder and former CEO of 23andMe. A hearing to discuss approval of the purchase is set for Wednesday. A bankruptcy judge's approval is required to go ahead with the transaction. The winning bid came days after members of Congress questioned Wojcicki about the fate of the DNA data. More than half of the states across the country sued 23andMe's bankruptcy estate to stop the sale of its consumers' biological samples, health-related traits, and medical records. On Tuesday, regulators from the UK and Canada fined 23andMe $2.3 million for a data breach in 2023 that exposed DNA on thousands of customers and health, race, gender, and family information on 7 million people. The regulators said they had been in contact with the US Trustee's office that is overseeing 23andMe's bankruptcy. Brian Focht, a data privacy lawyer, said the sensitivity of the data is a good reason for the court and consumers to view TTAM's proposal with caution. "This is information that's immutable. It's a permanent part of your identity," Focht said. "You can't change the way that you can change almost everything, including your Social Security number, your name, and your bank account number." Although TTAM's ownership of the data may resolve some of the privacy concerns, a consumer watchdog report filed with the bankruptcy court last Wednesday said a sale of 23andMe to any buyer, including TTAM, creates unique challenges. That's because it involves the possible transfer of consumer data that is "significantly more sensitive" than consumer data involved in prior bankruptcy cases. While Wojcicki has pledged to effectively run TTAM as the same type of business as 23andMe, Focht noted that she was in charge during that period in 2023, when 23andMe disclosed privacy and cybersecurity lapses. "So it's probably a bit foolishly optimistic to think that her re-takeover of the company will somehow make all the concerns disappear," he said. The bankruptcy court's watchdog expressed the same concern in a report filed Wednesday with the court. Because TTAM is a nonprofit, it said, it could possibly operate outside the scope of many data protection laws, potentially creating a "privacy and security enforcement and accountability vacuum." "That's a legitimate concern," said Gary Kibel, a privacy and data security partner with the law firm Davis+Gilbert, because most state consumer privacy laws do not apply to nonprofit entities. 23andMe did not respond to a request for comment on the proposed bid. The question of 23andMe's right to sell the data has not been tested in court. And because it is a direct-to-consumer company, as opposed to a healthcare provider, the data is not protected by federal laws, such as HIPAA. Nineteen states do have laws that require a company to obtain consent to process sensitive customer information. Some states have adopted stand-alone consumer health data privacy laws that create a higher standard of consent for the transfer of consumer health data to third parties, Kibel said. A regulator could consider whether a transfer of sensitive consumer data complies with those state laws. Outside of those state rules, Kibel said, every state has "UDAAP" laws that protect consumers against unfair or deceptive acts and practices. The US Federal Trade Commission has made it clear that bankruptcy does not automatically entitle a company to transfer consumers' personal information. Last week, 28 state attorneys general and the attorney general for the District of Columbia filed complaints in 23andMe's bankruptcy case claiming that the company's assets don't include its consumers' DNA and other personal information. And that's especially for those who signed agreements with the company prior to June 8, 2022, when terms stated that "23andMe will not sell, lease, or rent your individual-level information to a third party for research purposes without your explicit consent," the states alleged. 23andMe later amended its privacy policy to include the transfer of consumer data in the event of a bankruptcy. The privacy lawyers said that whether the policy change holds up under a challenge would depend on whether or not state law prohibits it. Daniel Gielchinsky, a bankruptcy lawyer with DGIM Law, said, "In light of the [watchdog's] report and the objections filed by the various states, it is likely that the bankruptcy court would not give [TTAM] the same rights in the data that 23andMe currently has." Another wrinkle for the bankruptcy court, according to Focht, is that the state law that applies to each of 23andMe's consumers depends on where they currently live and not where they lived at the time they consented to 23andMe's terms. The watchdog's report raised a third concern over TTAM's purchase of 23andMe. It said the company's telemedicine subsidiary, Lemonaid Health, would potentially be included in a sale, and the relationship between the companies could prove complicated given the "evolving legal landscape for personal health records and the sensitivity with health data." Lawmakers have expressed concern that foreign nations could gain access to Americans' genetic data. In 2015, 23andMe accepted a $10 million investment from WuXi Healthcare Ventures, which had ties to the Chinese Communist Party. The company has since been bought by Frontline BioVentures, which formed a new healthcare investment venture known as 6 Dimensions Capital. During testimony before the House Oversight Committee on Wednesday, Wojcicki promised that 23andMe would not sell customers' DNA data to foreign adversaries, specifically China, Russia, and North Korea. Uttara Ananthakrishnan, a professor of information systems at Carnegie Mellon University, said use of genetic data should be held to a higher level of consent than the consent required for other data, such as credit scores, search data, and location data. "I don't think people have realized the seriousness of this all, because it's really novel," Ananthakrishnan said. "Thirty years down the line, we don't know what's going to happen with this data, what kind of new technologies are going to come in. You might have [an AI model] trained on really granular genetic data that can predict job outcomes, insurance." But Kibel said, "Maybe this spurs Congress to realize, 'You know what? We need a federal comprehensive consumer privacy law, because we don't have one.'" Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Axios
5 days ago
- Business
- Axios
23andMe's former CEO agrees to buy the company for $305 million
Anne Wojcicki is poised to regain control of genetics testing company 23andMe, which she cofounded and led until earlier this year, after agreeing to put much of her personal fortune on the line. Why it matters: This is the same person that 23andMe customers originally trusted with their personal data, albeit under a much more opaque governance structure. Catch up quick: Regeneron Pharma in May won a bankruptcy auction for 23andMe's assets, bidding $265 million, beating out Wojcicki (who'd been trying to purchase the company since well before the Chapter 11 filing). The move sparked both congressional inquiry and lawsuits, including from 27 state attorneys general who claim a sale can't occur without consumer consent. Wojcicki fought to get the auction reopened, and on Friday reached an agreement to buy the 23andMe assets for $305 million. A Regeneron spokesperson says the company "declined to submit a new bid ... based on our assessment of 23andMe's remaining value." Or, as Regeneron CEO Leonard Schleifer told CNBC's Becky Quick, "the juice isn't worth the squeeze." Behind the scenes: Wojcicki made the offer through TTAM Research Institute, a public-benefit corporation formed just last month. She is the only person listed on TTAM's only filing with the California secretary of state, and the 335-page merger agreement doesn't list any other executives. Wojcicki originally told the court that she had the support of an undisclosed Fortune 500 company, which some reporters speculated was Oracle, but no such company appears in any of the relevant documents. Sources tell Axios that the entire $305 million comes from Wojcicki herself, and that 23andMe's special committee verified that she has the necessary funds. Look ahead: A court hearing to approve Wojcicki's bid is scheduled for tomorrow. The bottom line: Even if she clears all the legal hurdles, it remains unclear how Wojcicki plans to make 23andMe into a viable business (even if under a nonprofit umbrella).
NBC News
14-06-2025
- Business
- NBC News
Anne Wojcicki to buy back 23andMe and its data for $305 million
Anne Wojcicki, the co-founder and former CEO of 23andMe, has regained control over the embattled genetic testing company after her new nonprofit, TTAM Research Institute, outbid Regeneron Pharmaceuticals, the company announced Friday. TTAM will acquire substantially all of 23andMe's assets for $305 million, including its Personal Genome Service and Research Services business lines as well as telehealth subsidiary Lemonaid Health. It's a big win for Wojcicki, who stepped down from her role as CEO when 23andMe filed for Chapter 11 bankruptcy protection in March. Last month, Regeneron announced it would purchase most of 23andMe's assets for $256 million after it came out on top during a bankruptcy auction. But Wojcicki submitted a separate $305 million bid through TTAM and pushed to reopen the auction. TTAM is an acronym for the first letters of 23andMe, according to The Wall Street Journal. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement. 23andMe gained popularity because of its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The five-time CNBC Disruptor 50 company went public in 2021 via a merger with a special purpose acquisition company. At its peak, 23andMe was valued at around $6 billion. The company struggled to generate recurring revenue and stand up viable research and therapeutics businesses after going public, and it has been plagued by privacy concerns since hackers accessed the information of nearly seven million customers in 2023.
Yahoo
14-06-2025
- Business
- Yahoo
Anne Wojcicki's nonprofit wins bid for genetic testing company 23andMe
A nonprofit controlled by Anne Wojcicki, former chief executive of 23andMe, has won the bidding process to buy the bankrupt genetic testing company. If approved by the court, the sale would put Wojcicki back at the helm of the company she co-founded and previously attempted to take private. 23andMe, which helped popularize at-home DNA test kits and was once valued at $6 billion, declared Chapter 11 bankruptcy in March. The potential sale of the company has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. Read more: 'People should be worried': 23andMe bankruptcy could expose customers' genetic data More than 11 million customers have given DNA samples to 23andMe, putting a trove of genetic information under the company's control. Wojcicki's nonprofit TTAM Research Institute agreed to comply with 23andMe's privacy policy and committed to adopting additional consumer protections, according to a 23andMe statement. TTAM has offered $305 million to buy 23andMe and the company's assets. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome," Wojcicki said in a statement. "We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data." Read more: States sue to block the sale of genetic data collected by DNA testing company 23andMe New York-based drug maker Regeneron Pharmaceuticals was poised to buy 23andMe before the bankruptcy judge reopened the bidding process to allow for a bid from TTAM. The final round of bidding was conducted by the U.S. Bankruptcy Court for the Eastern District of Missouri and concluded when Regeneron declined to make a higher bid. Dozens of states have filed a joint lawsuit against 23andMe to block the South San Francisco-based company's sale of its customers' genetic data without explicit consent. 'This isn't just data — it's your DNA,' said Oregon Atty. Gen. Dan Rayfield in a statement. 'People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.' Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
13-06-2025
- Business
- Los Angeles Times
Anne Wojcicki's nonprofit wins bid for genetic testing company 23andMe
A nonprofit controlled by Anne Wojcicki, former chief executive of 23andMe, has won the bidding process to buy the bankrupt genetic testing company. If approved by the court, the sale would put Wojcicki back at the helm of the company she co-founded and previously attempted to take private. 23andMe, which helped popularize at-home DNA test kits and was once valued at $6 billion, declared Chapter 11 bankruptcy in March. The potential sale of the company has raised questions over privacy standards for genetic data, which experts say is uniquely sensitive, immutable and irreplaceable if stolen. More than 11 million customers have given DNA samples to 23andMe, putting a trove of genetic information under the company's control. Wojcicki's nonprofit TTAM Research Institute agreed to comply with 23andMe's privacy policy and committed to adopting additional consumer protections, according to a 23andMe statement. TTAM has offered $305 million to buy 23andMe and the company's assets. 'I am thrilled that TTAM Research Institute will be able to continue the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement. 'We believe it is critical that individuals are empowered to have choice and transparency with respect to their genetic data.' New York-based drug maker Regeneron Pharmaceuticals was poised to buy 23andMe before the bankruptcy judge reopened the bidding process to allow for a bid from TTAM. The final round of bidding was conducted by the U.S. Bankruptcy Court for the Eastern District of Missouri and concluded when Regeneron declined to make a higher bid. Dozens of states have filed a joint lawsuit against 23andMe to block the South San Francisco-based company's sale of its customers' genetic data without explicit consent. 'This isn't just data — it's your DNA,' said Oregon Atty. Gen. Dan Rayfield in a statement. 'People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off to the highest bidder.'
