Twenty-seven states and Washington, D.C. are suing to stop 23andMe (ME) from selling customers’ personal information without their consent.
The lawsuit filed in a Missouri bankruptcy court Monday was brought by a bipartisan coalition of attorneys general who fear that the genetic testing company will auction off people’s private information to the highest bidder without regard for their privacy.
“This isn’t just data – it’s your DNA. It’s personal, permanent, and deeply private,” Oregon Attorney General Dan Rayfield said in a statement. “People did not submit their personal data to 23andMe thinking their genetic blueprint would later be sold off… We’re standing up in court to make sure Oregonians – and millions of others – keep the right to control their own genetic information.”
The suit comes after 23andMe, which had a $6 billion valuation at the time of its 2021 IPO, declared bankruptcy in late March. The company then announced in May that it was being purchased by Regeneron Pharmaceuticals for $256 million, in a deal expected to finalized in the third quarter of 2025.
After 23andMe declared bankruptcy, there were myriad concerns about users’ privacy, especially after a 2023 data breach affecting 6.9 million people. Its stock tumbled by 98% from 2021 to November 2024. It then halted work on new therapies, laid off hundreds of employees and agreed to a $30 million settlement related to the breach. This April, the company was subjected to a Congressional investigation into the fate of its users’ sensitive information.
The coalition of states suing to stop the sale of information say that should be able to control the fate of their own genetic data, which Rayfield said “cannot be sold like ordinary property.” In their complaint, the states say the information is too personal and sensitive to be auctioned off.
In the meantime, the attorneys general are encouraging those who used the service to delete their genetic information.