The biotech firm, 23andMe, has committed to a $30 million settlement following a significant data breach impacting 6.9 million consumers. According to a Reuters report, the genetic testing company submitted a legal filing on Thursday outlining the terms of the settlement in a class-action lawsuit, heard in California’s Northern District. The document includes proposed compensation for those impacted by the data breach.
The focus of 23andMe’s settlement is a data breach revealed in October 2023. The company disclosed that hackers had managed to access and steal users’ personal and genetic data. In December of that year, 23andMe revealed the full extent of the damage – approximately 14,000 users had their information stolen directly, but hackers manipulated 23andMe’s relative-finder tool to reach a total of 6.9 million affected users.
The lawsuit, which was filed in San Francisco, also claimed that 23andMe did not adequately inform users of Chinese and Ashkenazi Jewish descent, who were supposedly targeted for their information on the dark web.
23andMe has agreed to pay the settlement, but this does not guarantee a fair distribution of the $30 million among the victims. As stated in the court filing, only $5 million is designated for compensating the users. Delving deeper, users who submitted an “extraordinary claim” – those who suffered financial fraud as a result of the breach – are eligible for a $10,000 payout. Other users, however, are only entitled to $100. The majority of the settlement will be used to cover attorney fees.
The settlement also requires 23andMe to enhance its cybersecurity measures and offer affected consumers a specialized “Privacy & Medical Shield + Genetic Monitoring” service to safeguard them against future fraud and identity theft issues. Once the court approves the settlement proposal, 23andMe will establish a dedicated website for the class-action settlement, where users can submit their individual claims.
If you’re one of the millions of users affected by this breach, stay alert for more information on how to claim your portion of the settlement, which may be relatively small.
