23andMe shares tumble as AG's office issues warning

South San Francisco-based familial investigating task 23andMe saw its shares plunge much than 50% Monday aft the institution announced it had filed for Chapter 11 bankruptcy protection.

The institution announced Sunday it volition question tribunal authorization to merchantability substantially each of its assets, calling it “the champion way guardant to maximize the worth of the business,” according to a filing successful the U.S. Bankruptcy Court for the Eastern District of Missouri.

Chief Executive Anne Wojcicki volition resign but stay connected the company’s board, the announcement said.

More than 15 cardinal radical person provided 23andMe with DNA samples, representing a trove of familial accusation that could beryllium sold successful bankruptcy proceedings.

But the institution struggled to physique a profitable concern astir DNA investigating and its efforts to licence information to pharmaceutical companies ne'er caught on.

California Attorney General Rob Bonta issued a informing past week to punctual consumers of their close to person their familial information deleted. 23andMe customers tin delete their information by logging onto their account.

“California has robust privateness laws that let consumers to instrumentality power and petition that a institution delete their familial data,” Bonta said. “Given 23andMe’s reported fiscal distress, I punctual Californians to see invoking their rights and directing 23andMe to ... destruct immoderate samples of familial worldly held by the company.”

Board of Directors Chair Mark Jensen said successful a connection that the institution volition prioritize the extortion of user information passim a income process. Wojcicki said successful a station connected X implicit the play that she aims to bargain the company’s assets.

“Data privateness volition beryllium an important information successful immoderate imaginable transaction,” Jensen said. “We are committed to continuing to safeguard lawsuit information and being transparent astir the absorption of idiosyncratic information going forward.”

23andMe shares were trading astatine 89 cents connected Monday pursuing Bonta’s warning.

In bid to comply with Nasdaq listing requirements, the institution did a reverse, 20:1 stock divided past fall.