23andMe pays $30 million to settle 2023 information breach lawsuit

23andMe is near settling a proposed class motion lawsuit filed towards the corporate over an information breach that compromised 6.9 million customers’ data. Based on the preliminary settlement submitting, the DNA testing firm has agreed to pay $30 million to affected prospects, in addition to to conduct annual laptop scans and cybersecurity audits for 3 years. A web site will likely be constructed to inform individuals eligible to a portion of the settlement fund and to facilitate funds. Affected customers can even be despatched a hyperlink the place they will delete all their data from the service, they usually’ll be capable to enroll to a three-year Privateness & Medical Protect + Genetic Monitoring program without cost. A choose nonetheless has to approve these phrases.

In October 2023, the corporate admitted that the DNA Family members profile data of roughly 5.5 million prospects and the Household Tree profile data of 1.4 million DNA Relative contributors had been leaked. It later revealed in a authorized submitting that the dangerous actors began breaking into buyer accounts in late April 2023 and that they’d entry to its methods till September that 12 months. It mentioned that the hackers used a way referred to as credential stuffing, which makes use of beforehand compromised login credentials to entry buyer accounts.

The breach led to a number of class motion lawsuits filed towards the corporate, together with one which accused 23andMe of failing to inform the plaintiffs that they had been particularly focused for having Chinese language and Ashkenazi Jewish heritage. Within the settlement agreement [PDF] for the consolidated lawsuit, 23andMe famous that it “denies the claims and allegations set forth within the Criticism” and that it “denies that it did not correctly shield the Private Data of its shoppers and customers.”

Based on Reuters, 23andMe describes its monetary situation as “extraordinarily unsure.” In its financial report for the 2024 fiscal 12 months, it revealed that it earned a complete income of $220 million, down 27 p.c from a $299 million income the 12 months earlier than. An enormous chunk of the settlement cash will come from cyber insurance coverage, although, which the corporate expects to cowl $25 million out of the $30 million whole.