Tag Archives: bankrupt

23andMe Founders Seek to Reclaim Control of Bankrupt DNA Testing Company

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The previous CEO of 23andMe is poised to reclaim leadership of the genetic testing firm after placing a $305 million bid from the nonprofit organization.

Recently, Regeneron Pharmaceuticals announced a deal to purchase the company for $256 million, surpassing a $146 million offer from Anne Wojcicki and the nonprofit TTAM Research Institute. A former executive noted that this substantial offer prompted Wojcicki to elevate her bid with backing from the Fortune 500 entity. The deal is anticipated to finalize in the upcoming weeks, pending a court hearing scheduled for June 17, as stated by the company on Friday.

Wojcicki had made several attempts while CEO to retain the company as private. Each attempt was met with rejection from the board, and ultimately all independent directors resigned in response to her acquisition efforts.

As a leader in ancestral DNA testing, 23andMe filed for bankruptcy in March and aimed to auction its business following a 2023 data breach that compromised sensitive genetic and personal information of millions of users.

Since its bankruptcy announcement, 23andMe has seen a significant loss of clients, with a concerning trend of users wanting their accounts closed. The company, which analyzes complete genomes with unknown parties showing interest, reported that approximately 15% of its current customers are requesting account terminations in light of the bankruptcy and potential sale. Experts recommend that customers ask firms to delete their DNA data to safeguard privacy. On Friday, TTAM endorsed 23andMe’s existing privacy policy, asserting compliance with all relevant data protection regulations. Earlier this week, New York and over 20 other U.S. states filed a lawsuit against 23andMe to contest the sale of personal data from its clients.

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Regeneron expressed enthusiasm for the new bid, but acknowledged that if Wojcicki’s offer were ultimately accepted, it would incur a $10 million termination fee.

Source: www.theguardian.com

Bankrupt DNA Testing Company 23andMe Acquired for $256 Million | Technology

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Regeneron Pharmaceuticals has announced its plan to acquire genetic testing firm 23andMe Holding for $256 million through bankruptcy auctions, as revealed on Monday.

Regeneron stated that it adheres to 23andMe’s privacy policy and relevant laws concerning customer data usage, and is prepared to provide detailed explanations to court-appointed supervisors regarding this data. The deal is expected to finalize in the third quarter.

“The Regeneron Genetics Center has a solid track record of safeguarding genetic data for individuals globally while pursuing scientific discoveries that leverage this information for societal benefit.” “We assure our 23andMe customers that we will uphold strict standards of data privacy, security, and ethical oversight, enabling us to enhance human health.”

Lawmakers scrutinized the bankruptcy proceedings initiated in March, expressing concerns that genetic data from millions of clients could end up in the hands of unscrupulous buyers. One organization, the Global Biodata Trust, formally proposed acquiring 23andMe, advocating for consumer control over data, allowing individuals to either store their DNA information in a trust or share it with related public benefit companies.

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Nevertheless, this bid also posed risks to customer privacy. The United States presently lacks comprehensive privacy regulations that enforceable guidelines around how Regeneron manages, utilizes, and shares genetic data acquired from 23andMe. This absence allows businesses to modify their privacy policies at will, often without prior notice to users. Without federal privacy laws, there is minimal recourse to hold organizations, including nonprofits, accountable.

Last month, 23andMe agreed to permit court-appointed supervisors to oversee client genetic information and security policies throughout the bankruptcy process.

Under the new agreement, Regeneron will acquire all of 23andMe’s assets, with the exception of Telehealth Service Lemonaid Health, which 23andMe intends to shut down. Following the completion of the transaction, 23andMe will continue as a direct or indirect subsidiary of Regeneron, the company stated.

The company has gathered genetic data from 15 million customers who ordered DNA test kits online and provided saliva samples. Weak demand for ancestor test kits has been exacerbated by the data breaches that occurred in 2023.

Source: www.theguardian.com

Bankrupt Crypto Firm TerraForm Labs Settles with US for $4.47 Billion

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TerraForm Labs has agreed to a $4.47 billion civil settlement with the U.S. Securities and Exchange Commission. They were found liable by a jury for misleading cryptocurrency investors who suffered losses of an estimated $40 billion when their TerraUSD and Luna tokens crashed in 2022, causing a widespread downturn in the cryptocurrency industry.

A final sentence against Terraform and its founder Do Kwon was filed in Manhattan federal court on Wednesday. The sentence is still pending approval from U.S. District Judge Jed Rakoff, who presided over the trial that concluded on April 5.

TerraForm’s judgment includes $4.05 billion in disgorgement and interest, as well as a civil penalty of $420 million. Due to TerraForm’s bankruptcy filing in January, it is unlikely that most of this amount will be paid and will be treated as an unsecured claim in the ongoing Chapter 11 liquidation process.

The total judgment amounts to $4.55 billion, which includes an $80 million civil penalty against Kwon. Kwon is also required to agree to a ban from cryptocurrency transactions and transfer $204.3 million to TerraForm’s bankruptcy estate.

The SEC stated in a court filing that, “If entered, this judgment would ensure maximum recovery for harmed investors and permanently shut down TerraForm. Accordingly, the proposed judgment is fair, reasonable, and in the public interest.”

Both Terraform and Kwon have agreed to the sentence. No immediate comments were provided by the men’s lawyers. Kwon was previously found guilty of fraud in an early April civil lawsuit filed in Manhattan.

The SEC alleged that TerraForm and Kwon misled investors regarding the stability of TerraUSD, which was meant to maintain a constant value of $1. They were also accused of falsely claiming that TerraForm’s blockchain was utilized in a popular mobile payment application in South Korea.

Luna, a more traditional token created by Kwon and closely linked to TerraUSD, plummeted in May 2022 when TerraUSD failed to uphold its peg to the dollar.

Kwon has been detained in Montenegro since March 2023, with the United States and South Korea seeking his extradition for criminal prosecution, although he has not yet appeared in court. Kwon maintains his innocence.

Source: www.theguardian.com