23andMe settles data breach lawsuit for US$30 million
CTV
23andMe will pay US$30 million and provide three years of security monitoring to settle a lawsuit accusing the genetics testing company of failing to protect the privacy of 6.9 million customers whose personal information was exposed in a data breach last year.
23andMe will pay US$30 million and provide three years of security monitoring to settle a lawsuit accusing the genetics testing company of failing to protect the privacy of 6.9 million customers whose personal information was exposed in a data breach last year.
The accord also resolves accusations that 23andMe did not tell customers with Chinese and Ashkenazi Jewish ancestry that the hacker appeared to have specifically targeted them, and posted their information for sale on the dark web.
A preliminary settlement of the proposed class action was filed late Thursday night in federal court in San Francisco, and requires a judge's approval.
It includes cash payments for customers whose data was compromised, and lets customers enrolfor three years in a program known as Privacy & Medical Shield + Genetic Monitoring.
In a Friday court filing, 23andMe called the settlement fair, adequate and reasonable.
Citing its "extremely uncertain financial condition," 23andMe also asked the judge to halt arbitrations by tens of thousands of class members, until the settlement is approved or they decide not to participate.
In a statement, 23andMe said it believes the settlement is in its customers' best interest. It also expects about $25 million of the cost to be covered by cyber insurance coverage.
