Article ID: 0b894c57d163636be783dbaf697afb882c58a2d97cf00e2f0a3744c4c7ca0d9f
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URL: https://www.businessinsurance.com/state-cant-seek-damages-from-23andme-successor-over-data-breach/
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State can’t seek damages from 23andMe successor over data breach - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers State can’t seek damages from 23andMe successor over data breach Cyber Risks Jul 13, 2026 (Reuters) – A U.S. bankruptcy judge on Friday said California cannot seek damages from the company formerly known as 23andMe arising from a 2023 data breach that exposed genetic and other personal information of an estimated 6.9 million customers. U.S. Bankruptcy Judge Brian Walsh in St. Louis said 23andMe’s Chapter 11 reorganization plan precludes the state from pursuing monetary relief against Chrome Holding Co. and an affiliate, though it could seek non-monetary remedies. Judge Walsh said California must either dismiss its May 28 lawsuit in San Francisco Superior Court within 14 days or amend its complaint to eliminate the claims for monetary relief. The decision is a defeat for California Attorney General Rob Bonta, who accused 23andMe of ignoring warnings that its systems were compromised and downplaying the breach’s severity. He has been seeking potentially millions of dollars in civil fines. Mr. Bonta’s office did not immediately respond to requests for comment. The attorney general argued that the U.S. Congress did not give bankruptcy judges power to prohibit state-law-based enforcement actions in state courts, permitting bankruptcy courts to become “a haven for wrongdoers.” But the judge “disagreed” that 23andMe’s reorganization plan created such a haven, and that even if it did, California could not attack it. “Because the state was a party to the Chapter 11 case and was given a fair chance to challenge this court’s subject-matter jurisdiction, the state cannot challenge it now” by pursuing its lawsuit, Judge Walsh wrote. California sued four months after the judge approved the creation of a fund to resolve most U.S. customer claims from the data breach. On Tuesday, Judge Walsh authorized a $32.46 million payment, on top of $14.29 million previously disbursed, for a total payout of $46.75 million. Palo Alto, California-based 23andMe filed for protection from creditors in March 2025. TTAM Research Institute, a nonprofit controlled by 23andMe co-founder Anne Wojcicki, bought 23andMe’s assets for $305 million last July. Related News New York Times countersues EEOC over DEI lawsuit July 13, 2026 Injured worker’s safety lapse not proven willful misconduct, comp board says July 10, 2026 FedEx worker loses bid for additional comp benefits July 10, 2026 Law school tells AI to take a seat as courts battle made-up law July 10, 2026 Calif. employers anticipate comprehensive reforms in 2027 July 10, 2026 EU greenlights Zurich’s $10.8B Beazley acquisition July 10, 2026 Intact’s cat losses 150% more than projected in Q2 July 10, 2026 New measures aim to woo foreign reinsurers to China July 10, 2026 Marsh completes buyout of Thailand joint venture July 10, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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