Millions of people affected by a massive data breach at genetic testing company 23andMe may be eligible for a substantial payout, following a proposed settlement agreement. The breach, which exposed sensitive data from nearly 7 million users, could result in individual payouts of up to $10,000.
Under the terms of the proposed settlement, which still requires court approval, 23andMe will provide financial compensation to qualifying customers who can demonstrate that they have suffered significant hardships, such as identity theft or other forms of financial loss. In addition to monetary compensation, the company will also offer additional security services to affected users.
The data breach, which came to light around this time last year, has had significant consequences for 23andMe, including the resignation of all its independent directors from the board last month. According to a report in The Financial Times, the company has been struggling financially, with mass layoffs and a significant decline in valuation.
Speaking to the Financial Times, a former senior staffer at 23andMe expressed sadness at the current state of the company, saying, “There’s tremendous value – not just monetary value, but also truly disruptive value that can transform healthcare for people – in what Anne [Wojcicki, CEO and co-founder] has built. It’s heartbreaking to see things sort of spinning out of control.”
The settlement proposal comes at a difficult time for 23andMe, which has faced significant financial and operational challenges in recent months. However, for the millions of people whose data was compromised in the breach, the prospect of financial compensation is likely to be welcome news.
It is worth noting that the settlement agreement is still subject to court approval, and it may be some time before affected users receive any compensation. Nonetheless, the proposal represents a significant step forward for 23andMe in addressing the fallout from the data breach and rebuilding trust with its customers.
