23, the genetic test giant once valued in billions is now sailing in Chapter 11 of bankruptcy and announcing millions of current and previous clients that they may have the right to submit claims as part of the restructuring process. Company and 11 of its subsidiaries, including Lemonaid Health and LPRXONE, submitted bankruptcy protection on March 23 this year in the eastern district of Misuri. Customers were informed on Sunday that they have until July 14 to submit a loss requests.
The bankruptcy follows an 18 -month -old 23 -year -old, marked by falling sales, executive departures and a devastating data violation that compromised the sensitive information of about 7 million users. The violation, publicly unveiled in October 2023, exposed the names of clients, birth years, relationship labels, DNA percentages shared with relatives, background reports and self-reported places, according to Techcrunch. Fallout caused multiple classroom lawsuits and a client’s disbelief wave that severely underestimates the business of the company facing the consumer.
Now, clients who were affected by that violation – specifically those announced by 23, that their information was endangered between May and October 2023 – may present what is known as a request of the cyber security incident. Those who suffered financial or other damage due to the violation may file a claim as part of the bankruptcy issue. Customers with other types of complaints unrelated to the internet attack, such as issues with DNA test results or company telehaalth services, may submit a special request under the overall date of the drug.
Congress has also expressed concern about the implications of the intimacy of bankruptcy.
Grace’s 23rd -aging was rapid, and its problems were complicated by its ambitious but costly expansion in digital health and telemedicine, which included the $ 400 million buying of Lemonaid Health in 2021. Initially aimed at diversifying 23 -year -old diversification of 23rd DNA. to give the company growth.
A proposed $ 30 million settlement in a lawsuit lawsuit linked to the Internet attack remains pending due to bankruptcy proceedings. (The 23rd lawyers say the solution is in question now that the company is in bankruptcy.) Customers who want to maintain their right to compensation must submit an official proof of the claim, regardless of their participation in class action.
Techcrunch has reached 23As for comment.
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