By SPEAKIN’ OUT NEWS
MONTGOMERY — Alabama will receive $260,817 as part of a multistate settlement with bankrupt genetic testing company 23andMe following a 2023 data breach that exposed the personal and genetic information of nearly 70,000 Alabama customers.
Attorney General Steve Marshall announced that Alabama joined 41 other states in reaching an agreement with the bankruptcy trustee overseeing the company’s Chapter 11 proceedings. Although the participating states sought a combined $150 million in claims, only $18 million was available for distribution because of the company’s limited bankruptcy assets.
The breach affected approximately 6.9 million customers worldwide, including 69,950 Alabamians. State officials alleged that 23andMe failed to implement reasonable cybersecurity safeguards to protect customers’ sensitive genetic information from credential-stuffing attacks and other security vulnerabilities.
“Last fall, we advised consumers to delete their accounts with 23andMe due to the company’s lack of accountability,” Marshall said. “While this settlement is a step toward holding the company accountable, it does not justify their actions.”
As part of the settlement, the company’s new owner must strengthen cybersecurity protections, conduct regular security assessments, comply with state privacy laws, and preserve consumers’ right to permanently delete their genetic data.
The agreement is separate from a previously approved $46.75 million class-action settlement for eligible consumers affected by the breach.
The incident also prompted Alabama lawmakers to consider stronger genetic privacy protections during the 2026 legislative session, although the proposed legislation did not receive final passage.