Court approves settlement after major data breach
Two years after hackers broke into the accounts of millions of 23andMe customers, a court has now approved a settlement plan. The genetic testing company faced a huge data breach in 2021 that exposed the information of 6.4 million people.
On Thursday, U.S. Bankruptcy Court Judge Brian Walsh gave preliminary approval to the settlement. The plan sets aside $30 million to $50 million for payments to customers who were affected.
What customers could receive
The settlement offers several types of payments:
- Health information claim payments – Eligible customers may receive up to $165. Around $1.25 million will be paid out in total for this category.
- Statutory cash payments – Customers in California, Oregon, Alaska, and Illinois during May to October 2023 may receive $100 each.
- Extraordinary claims – In cases of very serious harm before May 2023, some people may get up to $10,000 each, with a total of $8.3 million available.
- Free privacy monitoring – Every affected customer will also get five years of free privacy shield and genetic monitoring. This includes tracking on the dark web for stolen data.
So far, about 250,000 people have submitted claims, most of them in the United States.
Read this later: Can federal employees apply for unemployment benefits after the government shutdown? Here is what you need to know.
Why the breach happened
Hackers gained access because many customers reused old passwords and usernames from other websites. Once inside, they could see family connections through a feature called DNA Relatives, which links people with matching genetic data.
The stolen data included sensitive details. Hackers even tried selling data that reportedly belonged to high-profile people such as Elon Musk, Sergey Brin, Mark Zuckerberg, and even 23andMe’s own founder, Anne Wojcicki.
Impact on 23andMe
This data breach had major consequences for the company. 23andMe filed for Chapter 11 bankruptcy in March 2024. Later, in July, the company was sold for $305 million to a nonprofit started by Anne Wojcicki, the company’s former CEO.
Lawyers pushed for a larger settlement after the sale. Originally, there had been a $30 million settlement set in motion in San Francisco, but the bankruptcy process created an opportunity to raise the total amount.
Extra settlements in Canada and Lemonaid Health
The court also approved smaller settlements linked to 23andMe’s other businesses:
- $3.25 million for customers in Canada.
- $3.25 million for users of Lemonaid Health, an online medical and pharmacy service owned by 23andMe. This covers customers from June 2019 to July 2025.
Other settlement costs
Some money from the fund will go toward legal fees and administration:
- Attorneys could receive up to 25% of the fund—that’s $7.5 million to $12.5 million.
- About $918,000 will cover notice and administrative costs.
- 33 class representatives will each receive $1,000, totaling $33,000.
If any settlement checks are not claimed or customers don’t provide the necessary tax forms, the leftover money will be used to extend privacy monitoring. None of it will go back to 23andMe.
Read this later: What are the SNAP Payment deposit dates in Texas for October 2025? Here is this month’s Food Stamps payment schedule.
What this means for customers
This settlement is meant to help rebuild trust with customers who had their most private information exposed. While the payments may not be very large for most people, the free monitoring could be useful in preventing further damage.
The case also serves as a warning about reusing passwords across different websites. Hackers often take advantage of old login details to break into new accounts.
Read this later: What are the CalFresh deposit dates for October 2025? Here is this month’s Food Stamps payment schedule in California.
Looking ahead
23andMe’s story is a lesson in both the promise and risk of genetic testing. Millions of people signed up hoping to learn about their family history and health, but many had their personal information stolen.
The settlement is a step toward resolution, but for customers, the impact of the breach may last much longer.
Read this later: Capital One bank account holders have three days to receive their share of the $425 million settlement – You have until October 2 to…
