23andMe Seeks to Block Canadian Data-Breach Lawsuits Amid Bankruptcy

23andMe, the genetic testing company, has filed for Chapter 11 bankruptcy, prompting investigations and concerns over the potential sale of sensitive genetic data belonging to its 15 million customers. The House Oversight Committee is investigating the risks associated with the sale of customers' genetic information, citing national security and data privacy concerns, especially regarding potential foreign buyers. Following a significant data breach in October 2023, which compromised the information of nearly 7 million users, the company's financial stability has further declined, leading to its bankruptcy filing. State officials, including Iowa's Attorney General, are advising consumers on how to protect their genetic data amidst the bankruptcy, including options to delete accounts and revoke consent for data use. Legal experts are emphasizing the need for stronger regulatory frameworks to safeguard genetic data, as current regulations are inadequate. The situation raises alarms about the security and privacy of genetic information, which is uniquely identifiable and permanent, during the bankruptcy proceedings.