{"id":490,"date":"2026-07-10T23:13:07","date_gmt":"2026-07-10T23:13:07","guid":{"rendered":"https:\/\/officemovingamerica.com\/?p=490"},"modified":"2026-07-10T23:13:07","modified_gmt":"2026-07-10T23:13:07","slug":"california-cannot-seek-damages-from-23andme-successor-over-2023-data-breach","status":"publish","type":"post","link":"https:\/\/officemovingamerica.com\/?p=490","title":{"rendered":"California Cannot Seek Damages From 23andMe Successor Over 2023 Data Breach"},"content":{"rendered":"
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By Jonathan Stempel<\/p>\n<\/div>\n

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July 10 (Reuters) – A U.S. bankruptcy \u2060judge \u2060on Friday said California cannot \u2060seek damages from the company formerly known as 23andMe arising \u200bfrom a 2023 data breach that exposed genetic and other personal information of an \u200cestimated 6.9 million customers.<\/p>\n

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U.S. Bankruptcy \u200cJudge Brian Walsh in St. Louis said 23andMe’s Chapter 11 reorganization plan precludes \u2060the \u2060state from pursuing monetary relief against Chrome Holding Co and an \u200baffiliate, though it could seek non-monetary remedies.<\/p>\n<\/div>\n

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Walsh said California must either dismiss its May 28 lawsuit in San Francisco Superior Court within 14 days, or amend its complaint to \u200beliminate the claims for monetary relief.<\/p>\n<\/div>\n

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The decision is a defeat for California Attorney \u2060General \u2060Rob Bonta, who accused 23andMe \u2060of \u200bignoring warnings that its systems were compromised and downplaying the breach’s severity. He has \u200bbeen seeking potentially millions \u2060of dollars in civil fines.<\/p>\n<\/div>\n

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Bonta’s office did not immediately respond to requests for comment.<\/p>\n<\/div>\n

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The attorney general argued that the U.S. Congress did not give bankruptcy judges power to prohibit state law-based enforcement actions in state courts, permitting bankruptcy courts to \u2060become “a haven for wrongdoers.”<\/p>\n<\/div>\n

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But the judge “disagreed” that 23andMe’s reorganization plan created such \u2060a haven, and that even if it did, California could not attack it.<\/p>\n

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“Because the state was a party to the Chapter 11 case and was given a fair chance to challenge this court\u2019s subject-matter jurisdiction, the state cannot challenge it now” by pursuing its lawsuit, Walsh wrote.<\/p>\n<\/div>\n

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California sued four months after Walsh approved the creation of a fund to resolve most U.S. customer claims from the data breach.<\/p>\n<\/div>\n

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On Tuesday, Walsh authorized \u2060a $32.46 million payment, on top of $14.29 million previously disbursed, for a total payout of $46.75 million.<\/p>\n<\/div>\n

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Palo Alto, California-based 23andMe filed for protection from creditors in March 2025.<\/p>\n<\/div>\n

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TTAM Research Institute, a nonprofit controlled by 23andMe co-founder Anne Wojcicki, \u200bbought 23andMe’s assets for $305 million last July.<\/p>\n

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(Reporting by Jonathan Stempel in \u200bNew York; editing by David Gaffen)<\/p>\n<\/div>\n

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Copyright 2026 Thomson Reuters<\/b>.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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