California, Utah Disappointed in Final 23andMe Data Sale
California and Utah are disappointed in the sale of 23andMe and its customers' genetic data, though some states blessed the transaction (see 2506200016). Bankruptcy Judge Brian Walsh approved the deal on Monday, allowing nonprofit TTAM Research Institute to acquire the biotechnology company and all of its assets.
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“We believe that 23andMe's proposed bankruptcy sale of vast amounts of genetic data and biological samples to TTAM -- or potentially other purchasers -- does not comply with [the state's Genetic Information Privacy Act] and are disappointed in the court green lighting the sale despite our objection,” a spokesperson for California’s AG office told us in a statement. “We are evaluating next steps and remain committed to protecting the data of Californians.”
The Utah attorney general’s office echoed California's disappointment in an email to us. “Our office took a stand to defend Utahns and their highly personal and sensitive genetic data,” a spokesperson said. “Although this isn't the result we wanted, we remain dedicated to fiercely safeguarding our residents’ privacy and rights.”
On the other hand, Indiana Attorney General Todd Rokita (R) applauded the final sale. “Hoosiers who have provided sensitive information to this company deserve assurance that their data will remain confidential and secure amid these bankruptcy proceedings,” he said in a press release Tuesday. “The agreement we forged with the new owners of 23andMe helps achieve this objective.”
Similarly, North Carolina Attorney General Jeff Jackson also celebrated the sale. “People deserve the peace of mind that their genetic information -- some of the most personal data they have -- is protected,” he said. “I’m pleased that this data will not go to another for-profit company and that we were able to do more to protect people’s data from being used without their consent.”
In a memorandum on June 27, Walsh said, “If we cut through the formalities, this transaction will result in [23andMe Co-Founder and CEO] Ms. [Anna] Wojcicki’s repurchase of a business that she co-founded and ran for years,” by paying “a very large sum of money … and she will improve privacy practices while honoring customers’ rights to delete their accounts and data.”
Wojcicki also leads TTAM. In a release Monday, she said, “Individuals should be empowered to have choice and transparency with respect to their genetic data and have the opportunity to continue to learn about their ancestry and health risks as they wish,” she said. “The future of healthcare belongs to all of us.”