Data breaches frequently result in class action lawsuits, as companies with access to sensitive personal information bear a legal obligation to safeguard it from unauthorized access and misuse. Failure to prevent data breaches and related fraudulent activities can lead to legal challenges from affected consumers. Recently, one company settled a lawsuit concerning a data breach violation, prompting affected individuals to assess their eligibility for financial compensation.
Corporate Responsibilities in Data Protection
In the current digital landscape, where cybercrime is on the rise, the importance of strong data protection measures cannot be overstated. Organizations that collect, store, and process sensitive information, including financial and personal identifiers, need to implement robust security protocols to ensure safe storage and prevent unauthorized access. Any compromise of this data not only jeopardizes consumer privacy but also undermines public trust, leading to potential class action lawsuits aimed at holding these companies accountable.
Data compromised during such breaches can be marketed on the dark web, posing significant risks for identity theft among consumers. Individuals impacted by such breaches may have sufficient grounds to initiate a class action lawsuit against the respective company, seeking damages and demanding that policies be updated to prevent future incidents.
Impending Deadline for 23andMe Data Breach Settlement
In 2023, 23andMe, a company focused on DNA tracking, reported a significant data breach that compromised the accounts of approximately 14,000 users and linked the data of nearly seven million individuals. This breach involved exposure of account details, geographic locations, ancestry reports, DNA connections, family names, profile images, and birth dates.
A class action lawsuit was filed against the firm in January 2024, asserting that 23andMe neglected its duty to protect consumer data. Moreover, it was alleged that the company failed to alert users regarding the targeted nature of the breach, particularly affecting those with Chinese or Ashkenazi Jewish heritage. The deadline for submitting claims to qualify for the settlement is set for July 14, 2025.
Eligibility Criteria for the Settlement
The settlement arising from this major data breach could allow eligible claimants to receive compensation of up to $500 for undocumented expenses and up to $1,500 for documented expenses. To qualify, claimants must meet specific criteria: they must have been U.S. residents as of August 11, 2023, and customers of 23andMe between May and October 2023. Additionally, they must have received notification from the company regarding the compromise of their data and experienced monetary damages or other forms of harm stemming from the breach.
As of now, a final hearing has not been scheduled. Currently, proceedings in the lawsuit are on hold due to the company’s bankruptcy filing. Recent reports confirmed that Regeneron Pharmaceuticals plans to acquire 23andMe for $256 million. This transaction is expected to allow Regeneron to contribute to 23andMe’s mission of assisting individuals with DNA insights for personal health improvement.
“We believe we can help 23andMe deliver and build upon its mission to help those interested in learning about their own DNA and how to improve their personal health, while furthering Regeneron’s efforts to use large-scale genetics research to improve the way society treats and prevents illness overall,” stated George Yancopoulos, co-founder, board co-chair, and chief scientific officer of Regeneron.
The acquisition will enable Regeneron to take control of 23andMe’s Personal Genome Service, Total Health, Research Services business lines, and biobank assets while allowing 23andMe to continue its genomic services. However, it is unlikely that a final hearing will be scheduled, nor will payouts be distributed to class members until the acquisition is completed. For more information regarding this settlement, interested individuals can visit Top Class Actions to learn how to file a claim.
