A multimillion-dollar class action settlement has received approval for Canadian customers of genetic testing company 23andMe who were impacted by a significant data breach in 2023.
The settlement provides $3.25 million US specifically for Canada-based victims whose personal genetic information was compromised when hackers breached the company's systems. The cyberattack exposed sensitive customer data including genetic profiles and personal information of users across North America.
Sage Nematollahi, a lawyer with Toronto-based KND Complex Litigation who represented the Canadian class, described the outcome as "an excellent result for the affected Canadian customers."
Precedent-Setting Legal Resolution
The settlement marks a significant legal milestone, as Nematollahi noted it is believed to be "the first time a Canadian class action claim has been settled within a Chapter 11 insolvency proceeding."
The California-based 23andMe filed for Chapter 11 bankruptcy protection last year, citing the need to resolve outstanding liabilities from the 2023 data breach among other financial challenges. The company's assets were subsequently acquired by TTAM Research Institute for $305 million US.
Eligibility and Claims Process
Canadians eligible for compensation include those who were 23andMe customers between May 1, 2023, and Oct. 1, 2023, resided in Canada at the time of the breach, received official notification of being affected, and did not opt out of the settlement.
Affected customers have until 11:59 p.m. Pacific Time on June 25, 2026, to submit their compensation claims. The settlement website provides detailed instructions for the claims process, and a toll-free Canadian helpline is available at 1-866-306-4636.
The data breach highlighted growing concerns about the security of genetic information as direct-to-consumer DNA testing services have gained popularity across Canada and internationally.
Information sourced from CBC Business reporting.