A federal bankruptcy judge in St. Louis has approved a $46.75 million settlement for individuals affected by a 2023 data breach at the genetic testing firm 23andMe. The breach compromised genetic and other personal information of approximately 6.9 million customers.
Bankruptcy Judge Brian Walsh ruled on Tuesday that the settlement is fair and equitable, serving the best interests of a trust managed by the company’s bankruptcy administrator. The approved amount reflects the total settlement, but it will be offset by $14.29 million already distributed in relation to the breach, resulting in an additional payout of $32.46 million to affected parties.
23andMe, headquartered in Palo Alto, California, filed for Chapter 11 bankruptcy protection in 2025. The company attributed its financial difficulties to a combination of the 2023 data breach, the ensuing legal challenges, and a decline in consumer demand for its genetic testing services.
The settlement represents a significant step toward resolving claims tied to the breach, which exposed sensitive genetic data that raised privacy concerns among customers and regulators alike. The bankruptcy proceeding continues to address the company’s efforts to reorganize its operations and liabilities in the wake of these events.
