23andMe shares tumble as AG's office issues warning

Los Angeles Times - Mar 24th, 2025

South San Francisco-based genetic testing company 23andMe announced it has filed for Chapter 11 bankruptcy protection, causing its shares to drop more than 50%. The company plans to sell most of its assets to maximize business value, and CEO Anne Wojcicki will resign but stay on the board. Despite having over 15 million DNA samples, 23andMe faced challenges in turning a profit and failed to gain traction in licensing data to pharmaceutical companies. In light of these financial difficulties, California Attorney General Rob Bonta reminded consumers of their right to delete their genetic data from the company's holdings.

The situation highlights the precarious nature of the genetic testing business and raises significant privacy concerns as the company undergoes bankruptcy proceedings. With a vast trove of genetic data at stake, the protection of customer information is paramount. Board Chair Mark Jensen emphasized the company's commitment to safeguarding data during the sales process, while Wojcicki expressed her intent to acquire the company's assets. This development underscores the broader challenges facing personal genomics companies in monetizing genetic data and navigating privacy regulations.

Rob Bonta Bankruptcy Data Privacy 23and Me Anne Wojcicki Genetic Testing Asset Sale

Story submitted by Fairstory

RATING

6.2

Moderately Fair

Read with skepticism

The article provides a timely and relevant overview of 23andMe's financial struggles and the implications for data privacy. It presents several factual claims, some of which require further verification, and offers a balanced perspective by including statements from company executives and the California Attorney General.

While the article is generally clear and accessible, it could benefit from additional context and a wider range of sources to enhance its credibility and engagement. The story effectively highlights the potential impact on consumers and the importance of data protection, contributing to ongoing discussions about corporate responsibility and privacy laws.

Overall, the article is a valuable contribution to public discourse on these issues, with the potential to influence opinion and spark meaningful debate. However, greater transparency and a broader range of perspectives would strengthen its impact and reliability.

Accuracy

The story presents several factual claims that appear accurate but require verification. It reports that 23andMe shares fell over 50% following a Chapter 11 bankruptcy filing, a significant event that aligns with typical market reactions to such news. However, the exact percentage drop and the closing price on Monday should be confirmed.

The article accurately notes the resignation of Anne Wojcicki from her CEO position while remaining on the board, a detail that aligns with typical corporate restructuring during bankruptcy. However, verification of her future intentions regarding the company is necessary.

The claim that 23andMe has over 15 million DNA samples is plausible given the company's history, but verification of this figure and the implications of selling genetic data is crucial. The article also accurately mentions California Attorney General Rob Bonta's warning about genetic data privacy, which aligns with ongoing privacy concerns. However, the exact details of this warning require confirmation.

Balance

The article provides a reasonably balanced view of 23andMe's situation, highlighting both the company's financial struggles and its commitment to data privacy. It includes perspectives from company executives, such as Anne Wojcicki and Mark Jensen, as well as external viewpoints like that of California Attorney General Rob Bonta.

However, the story could benefit from additional viewpoints, such as those of financial analysts or industry experts, to provide a broader perspective on the implications of the bankruptcy filing. The article primarily focuses on the company's statements and does not explore potential criticisms or alternative interpretations of the events.

Clarity

The article is generally clear and well-structured, presenting the key points in a logical order. It effectively conveys the main events, such as the bankruptcy filing and the implications for data privacy, using straightforward language.

However, some sections could benefit from additional context or explanation, particularly regarding the potential sale of genetic data and the implications for consumers. Providing more background information on these topics would improve the reader's understanding and engagement with the content.

Source quality

The article cites statements from 23andMe executives and the California Attorney General, which are credible sources for the information presented. However, it lacks a variety of sources, such as independent analysts or industry experts, who could provide additional insights and context.

The reliance on company statements may introduce potential bias, as these sources have a vested interest in presenting the situation in a certain light. The article would benefit from incorporating third-party sources to enhance its credibility and provide a more comprehensive view of the situation.

Transparency

The article is transparent about its sources, primarily quoting company executives and the California Attorney General. However, it lacks detailed explanations of the methodology behind the claims, such as the process for determining the share price drop or the specifics of the bankruptcy filing.

There is also a lack of disclosure regarding any potential conflicts of interest, such as the relationship between the reporter and the sources. Greater transparency in these areas would enhance the article's credibility and allow readers to better assess the validity of the claims.