Published
March 23, 2024
Updated
July 21, 2026
How 23andMe fell from a $6 billion valuation to Chapter 11 bankruptcy, the 2025 sale that renamed it Chrome, and what it all meant for the data breach class action settlement.
What Happened to 23andMe?
23andMe, the genetic testing company, filed for Chapter 11 bankruptcy protection in March 2025 in the U.S. Bankruptcy Court for the Eastern District of Missouri. After going public in 2021 at a peak valuation of roughly $6 billion, the company's value fell to under $100 million by 2025 amid declining revenue, operational challenges, and the fallout from a major 2023 data breach.If you are looking for the settlement claim details, benefit tiers, and payment status, see our dedicated 23andMe data breach settlement page. This page focuses on the bankruptcy itself and what it meant for the case.
Bankruptcy Filed
March 2025 (Chapter 11)
U.S. Bankruptcy Court, Eastern District of Missouri
Company Status
Assets sold · renamed Chrome
Sold in 2025 to TTAM Research Institute, a nonprofit led by co-founder Anne Wojcicki
Data Breach Settlement
Approved Jan 30, 2026 — claims closed
$46.75M distribution set June 2026 · see the settlement page for details
State AG Settlement
$18M · 42 states (July 2026)
Paid to state treasuries — separate from the $46.75M consumer settlement
Why Did 23andMe File for Bankruptcy?
Several factors contributed to the company's decline:• The 2023 data breach: a cyberattack exposed the personal information of about 6.4 million U.S. customers, triggering multiple lawsuits, regulatory scrutiny, and lost consumer trust.
• Financial struggles: the company faced ongoing losses, job cuts, the wind-down of its therapeutics programs, and a substantial deficit.
• A collapsing valuation: the post-IPO market value fell from roughly $6 billion to under $100 million, leaving the company unable to fund operations on its own.
To navigate the proceedings, 23andMe secured debtor-in-possession financing to support operations during the bankruptcy.
The 2025 Sale and the Rename to Chrome
During the bankruptcy, 23andMe's assets were put up for sale. In 2025, the bankruptcy court approved a sale to TTAM Research Institute, a nonprofit led by 23andMe co-founder Anne Wojcicki. After the sale, 23andMe Holding Co. and 23andMe, Inc. changed their legal names to Chrome Holding Co. and ChromeCo, Inc. For continuity, the settlement notice and court filings still refer to the company as 23andMe.What the Bankruptcy Meant for the Data Breach Settlement
The consolidated data breach class action — originally filed as In re: 23andMe, Inc. Customer Data Security Breach Litigation in the Northern District of California — was resolved inside the bankruptcy in the Eastern District of Missouri. The Bankruptcy Court granted final approval of the settlement on January 30, 2026.In a June 2026 filing, the plan administrator set the distribution at $46.75 million — below the $50 million cap the court had authorized — with about $32.5 million allotted to resolve the class claims and more than $14 million used to pay claims administrator Kroll. The claim deadline of February 17, 2026 has passed, and the official settlement website states that payments will not be distributed until the bankruptcy reconciliation process is resolved, which may take several months or longer. For the full benefit tiers, eligibility, and payment timeline, see the 23andMe data breach settlement page.
July 2026 Multistate Attorney General Settlement
On July 14, 2026, a bipartisan coalition of 42 state attorneys general announced an $18 million settlement with the 23andMe bankruptcy estate to resolve the states' government enforcement claims over the 2023 data breach. This is a separate matter from the consumer class action described above: the $18 million is paid to state treasuries to cover the states' investigation and enforcement costs, and it does not come out of, add to, or otherwise reduce the $46.75 million consumer settlement fund.The states had filed roughly $150 million in claims during the Chapter 11 case, but because the bankruptcy estate held limited assets, their recovery was capped at $18 million — paid immediately from available bankruptcy funds. The attorneys general's investigation alleged that 23andMe failed to adopt basic safeguards against the credential-stuffing campaign that ran for about five months (April to September 2023) before it was detected, including no requirement for multi-factor authentication, no screening of customer passwords against lists of known breached credentials, and inadequate rate limiting and login monitoring. The company resolved the claims without admitting wrongdoing.
Individual state allocations reflect the size of each state's claim. Reported shares include:
• Texas: about $1.2 million
• Connecticut: $887,729
• New York: about $705,000
• Pennsylvania: $491,902
• Colorado: $394,324
• Kentucky: $259,375
The settlement also imposes ongoing data-security obligations on the buyer, the nonprofit TTAM Research Institute (re-registered as the 23andMe Research Institute). Under the AG-enforced terms, the new owner must maintain an independent data-security advisory board, undergo annual third-party risk assessments, and continue to honor customers' rights to permanently delete their genetic records and destroy stored DNA samples. California did not join the multistate group and is pursuing its own separate enforcement action against the successor company; the bankruptcy court has ruled the state cannot seek separate monetary relief under the Chapter 11 plan. For a plain-language news write-up of this development, see our report on the $18 million 23andMe state attorney general settlement.
What Customers Should Know About Their Genetic Data
Customer data transferred with the company's assets to the new owner under the court-approved sale. Customers who no longer want their information stored can delete their account and request destruction of their stored sample and data through their 23andMe account settings.Because Social Security numbers and other sensitive data were exposed in the 2023 breach, it remains wise to monitor your credit and watch for suspicious activity. If you want to compare other genetic and privacy cases, see our investigations into FamilyTreeDNA and MyHeritage genetic privacy claims.
Frequently Asked Questions
Why did 23andMe file for bankruptcy?
23andMe filed for Chapter 11 in March 2025 after years of declining revenue, an inability to reach profitability, and the fallout from the 2023 data breach. Its value had fallen from roughly $6 billion after its 2021 IPO to under $100 million by 2025.
Is 23andMe still in business?
Yes, under new ownership. In 2025 the bankruptcy court approved a sale to TTAM Research Institute, a nonprofit led by co-founder Anne Wojcicki, and the company was renamed Chrome Holding Co. and ChromeCo, Inc.
What did the bankruptcy mean for the data breach settlement?
The settlement was resolved inside the bankruptcy. The U.S. Bankruptcy Court for the Eastern District of Missouri granted final approval on January 30, 2026, and the plan administrator set a $46.75 million distribution in June 2026. The claim deadline has passed and payments are pending the bankruptcy reconciliation process.
What happened to my genetic data after the bankruptcy?
Customer data transferred with the company's assets to the new owner under the court-approved sale. You can still delete your account and request destruction of your stored sample and data through your 23andMe account settings.
What is the $18 million state attorney general settlement with 23andMe?
On July 14, 2026, a bipartisan coalition of 42 state attorneys general announced an $18 million settlement with the 23andMe bankruptcy estate over the 2023 data breach. The money is paid to the participating states, not to consumers, and it is separate from the $46.75 million consumer class action settlement. The states had filed about $150 million in claims, but recovery was capped at $18 million because of the limited assets in the bankruptcy estate.
Sources
- In re Chrome Holding Co., et al. (f/k/a 23andMe Holding Co. and 23andMe, Inc.), Case No. 25-40976, U.S. Bankruptcy Court for the Eastern District of Missouri
- In re: 23andMe, Inc. Customer Data Security Breach Litigation, Case No. 24-md-03098-EMC, U.S. District Court, Northern District of California
- Official Settlement Website: 23andMeDataSettlement.com
- New York Office of the Attorney General, press release on the $18M multistate settlement (July 2026): ag.ny.gov
- Pennsylvania Office of Attorney General, press release on the $18M multistate settlement (July 2026): attorneygeneral.gov
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Bankruptcy Case
In re Chrome Holding Co., et al. (f/k/a 23andMe Holding Co. and 23andMe, Inc.)
Case Number
25-40976
Court
U.S. Bankruptcy Court, Eastern District of Missouri
Filed
March 2025 (Chapter 11)
Acquirer
TTAM Research Institute (nonprofit led by Anne Wojcicki)
Settlement Status
Approved Jan 30, 2026; $46.75M distribution set June 2026; claims closed
State AG Settlement
$18M with 42 states, announced July 14, 2026 (separate from the consumer settlement)
Official Website
23andMe Data Settlement.com
