Genetic testing firm 23andMe has filed for Chapter 11 bankruptcy, highlighting weak demand and financial losses following a significant data breach. Co-founder Anne Wojcicki has resigned as CEO as the company eyes a sale of its assets through bankruptcy proceedings. Despite the challenges faced by the company since its 2021 public debut at a $3.5 billion valuation, Wojcicki maintains a belief in 23andMe's future and plans to bid on it. Concerns from officials, including California's attorney general, revolve around the future of customer data amid existing privacy policies allowing its potential sale.
"The company’s shares fell 50 percent to 88 cents in Monday trading after co-founder Anne Wojcicki, who made multiple failed takeover bids, resigned as CEO."
"Officials, including California Attorney General Rob Bonta, have questioned what would happen to the genetic data collected by 23andMe although the company's privacy policies say the data could be sold to other firms."
"There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering."
"The company said the bankruptcy process will not affect how it stores, manages or protects customer data."
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