The District of Columbia together with 27 states filed a lawsuit in bankruptcy court on Monday against 23andMe which aims to stop the company from selling customer genetic data without obtaining consent.
The legal action came after 23andMe declared Chapter 11 bankruptcy on March 23 alongside its deal to sell the firm to Regeneron Pharmaceuticals.
23andMe retains biological samples and sensitive genetic information from over 15 million users who participated in at-home DNA tests which creates significant concerns regarding potential data privacy violations and misuse.
Oregon Attorney General Dan Rayfield emphasized the deeply personal nature of genetic data which requires explicit consent before being used as a commercial asset.
Legal proceedings combined with customer alerts to delete their accounts show extensive worry about safeguarding genetic data while 23andMe faces financial challenges and potential sale.