23andMe’s bankruptcy raised a question most companies never have to answer:
What happens to millions of customers’ genetic data when the business gets sold?
California tried to block the transfer of that data without customers giving fresh consent.
The bankruptcy court rejected the challenge.
Now the state has agreed to a $6 million settlement and will drop its remaining appeals.
Customers still retain the right to request deletion of their genetic information and destruction of their biological samples.
The fight is a striking example of how a bankruptcy sale can involve assets far more sensitive than inventory, equipment or IP.
-The Bankruptcy Brief
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