In 2021 with its value at 6 billion USD and as it became a household name it seemed the future would be bright for the genetic testing company. Just three short years later how the mighty have fallen as its value sits at just 50 million. A combination of scandal and board room politics have led to a reality where 23andMe files for Bankruptcy. In a statement the company claimed that it filed for Chapter 11 bankruptcy in order to facilitate a sale.
The Scandal
The downfall began in 2023 when the company was rocked by a data leak scandal. Where not only was personal data leaked but also genetic data. Over 7 million customers had their information stolen over a period of 5 months. At the time the company faced heavy criticism over its lack of transparency and slow reaction to the controversy. In the end 23andMe were forced to pay 30 million USD in a class action lawsuit. Against a backdrop of declining demand for DNA testing, it was the beginning of the end for the DNA testing pioneer.
Wojcicki vs the Board
CEO Anne Wojcicki who owns 49 percent of the company announced she was stepping down from her position following the announcement. Citing her frustration in being unable to get a controlling interest in the company. She had been attempting to take the company private since April of last year.
Mark Jensen, Chair and member of the Special Committee of the Board of Directors, described the bankruptcy decision as a calculated move. He stated, “Following a comprehensive review of all strategic options, we have concluded that a court-supervised sale is the most effective course of action to maximise the value of the business.
Wojicki has insisted on social media that she is still intent on acquiring the business. However, as 23andMe files for bankruptcy it could be too little too late.
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