CLAIM CLOCK: Customers using 23andMe can get payment from $30 million data breach settlement – but the dates will affect the amount
According to THE SUN, Genetic testing giant 23andMe has agreed to a $30 million settlement in response to a class action lawsuit stemming from a significant data breach in 2023. The breach exposed the personal data of millions of customers, leading to accusations that 23andMe failed to adequately protect user information and delayed notifying customers about the incident.
Although the company has settled the lawsuit, it denies any wrongdoing. A spokesperson for 23andMe stated, “We continue to believe this settlement is in the best interest of 23andMe customers, and we look forward to finalizing the agreement,” according to Fox Business.
Settlement Details and Legal Expenses
The settlement includes approximately $25 million covered by the company’s cyber insurance, which will also help cover legal expenses. However, the deal still requires final approval from a judge before payments can be distributed to affected customers.
How the Breach Unfolded
The breach became public in October 2023 when reports emerged that 23andMe customer information had appeared for sale on the dark web. Hackers reportedly accessed sensitive data including names, birth years, genders, and ancestry details. By December 2023, 23andMe confirmed that personal data from about 6.9 million users—nearly half of its customer base—had been compromised.
The breach was caused by a cyberattack technique known as “credential stuffing,” where hackers use previously leaked usernames and passwords to access accounts. Customers who reused the same login credentials across multiple platforms were especially vulnerable.
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Eligibility and Next Steps for Affected Users
For 23andMe users, the timing of the breach will impact their eligibility for compensation. Customers affected by the data breach between October and December 2023 may be eligible for a share of the settlement once it is finalized. Specific details about individual payout amounts have not yet been disclosed.
“We have executed a settlement agreement for an aggregate cash payment of $30 million to settle all U.S. claims regarding the 2023 credential stuffing security incident. Counsel for the plaintiffs have filed a motion for preliminary approval of this settlement agreement with the court. Roughly $25 million of the settlement and related legal expenses are expected to be covered by cyber insurance coverage. We continue to believe this settlement is in the best interest of 23andMe customers, and we look forward to finalizing the agreement.”
Affected customers should stay vigilant for official notices from 23andMe regarding claim submissions and payment timelines. The settlement’s final approval is still pending, and impacted individuals should monitor updates to determine their eligibility.
Additional Settlement Opportunities
While waiting for the 23andMe settlement, individuals might be interested in other settlement opportunities. Home Depot is set to pay a $2 million settlement after overcharging customers, and there is a $14.96 million settlement with three ways for taxpayers to claim cash.
The U.S. Sun has reached out to 23andMe for further comment.
