Biotech giant 23andMe has agreed to a substantial $30 million payout to resolve a massive data breach that compromised the sensitive information of 6.9 million users.
According to Reuters, the genetic testing company filed a court document on Thursday outlining the settlement in a class action lawsuit in the Northern District of California. In the document, 23andMe proposed compensation for victims of the data breach.
What does the 23andMe settlement entail?
In October 2023, 23andMe disclosed a data breach in which hackers had stolen users’ personal records and genetic information. However, it wasn’t until December that year that the company revealed the full extent of the damage. Around 14,000 users had their information stolen, but hackers exploited 23andMe’s relative-finder tool to access even more users, ultimately affecting 6.9 million.
The class-action lawsuit filed in San Francisco also alleged that 23andMe failed to properly notify users with Chinese and Ashkenazi Jewish heritage who were reportedly targeted for their information on the dark web.
So 23andMe is paying up, but that doesn’t mean victims of the breach will receive an equal share of the $30 million. According to the court document, only $5 million is allocated towards compensating the users. Breaking this down further, users who filed for an “extraordinary claim,” meaning they suffered financial fraud, are eligible for a $10,000 payout. Others, however, are only entitled to $100. The bulk of the settlement will be used to pay attorney fees.
Through the settlement, 23andMe will be required to enhance its cybersecurity measures and provide a customized “Privacy Medical Shield + Genetic Monitoring” to affected users in order to protect them from future fraud and identity theft issues. Once the settlement proposal is approved by the court, 23andMe will set up a dedicated class-action settlement website where users can file their individual claims.
If you were among the millions of individuals impacted, remain vigilant for forthcoming details on how to claim your (likely modest) share of the settlement.
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