23andMe Files for Bankruptcy, CEO Resigns amidst Data Privacy Concerns

Genetic testing company 23andMe has filed for Chapter 11 bankruptcy following a significant decline in its stock value and failed attempts by co-founder Anne Wojcicki to take the company private. Wojcicki resigned as CEO as part of the reorganization process but plans to bid for the company as an independent bidder. The company's issues have been compounded by a data breach in 2023 that exposed the personal information of 6.9 million users, leading to a class-action lawsuit settlement. Despite previously being valued at over $6 billion, 23andMe's revenue dropped by 27% in the past year, and its business model has struggled to generate consistent profits. The board has indicated that a court-supervised sale of the company's assets is the best path forward to maximize value and address legal liabilities. Moving forward, 23andMe emphasizes its commitment to customer data privacy as it navigates these challenging circumstances.