Genetic testing company 23andMe has filed for Chapter 11 bankruptcy and is now alerting millions of customers that they may be eligible to file claims for losses.
The filing, which includes 23andMe and 11 of its subsidiaries, like Lemonaid Health and LPRXOne, was submitted on March 23, 2025, in the Eastern District of Missouri. Customers have until July 14 to file their claims.
The bankruptcy comes after a rough year and a half for the company, which once held a multi-billion-dollar valuation. Its downfall was driven by declining sales, top-level resignations, and a massive data breach that exposed sensitive information of nearly 7 million users. That breach, disclosed in October 2023, leaked personal details such as names, birth years, family connections, ancestry results, and even users’ locations.
Affected customers — especially those notified that their data was exposed between May and October 2023 — are being invited to submit a Cyber Security Incident Claim. If they experienced financial or emotional damage from the breach, they may be entitled to compensation. Others who had unrelated problems, such as with DNA test results or telehealth services, can file a General Claim under the bankruptcy process.
Congress has also voiced concerns about how the bankruptcy might affect customer privacy and data handling.
Part of 23andMe’s financial trouble came from its costly push into telemedicine. In 2021, it bought Lemonaid Health for $400 million, hoping to expand its business beyond DNA testing. But that investment didn’t deliver the results the company had hoped for.
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A $30 million settlement in a related class action lawsuit over the cyberattack is currently on pause due to the bankruptcy. Anyone hoping to get compensation — whether they’re part of the lawsuit or not — must still file an official claim in the bankruptcy court to preserve their rights.
