Judge briefly pauses 23andMe bankruptcy sale amid California's appeal
California failed to convince a bankruptcy judge to stop the sale earlier on Monday, but U.S. District Judge Matthew Schelp in St. Louis ordered a brief pause following California's appeal of that ruling. Schelp scheduled a Thursday court hearing to determine if a longer pause is warranted in the case.
23andMe, which filed for bankruptcy in March, is selling its assets to TTAM Research, a new nonprofit founded by 23andMe co-founder Anne Wojcicki, for $305 million.
23andMe, TTAM and California did not immediately respond to a request for comment.
California argues the sale violates the state's Genetic Information Privacy Act, which prohibits the transfer and disclosure of genetic data or biological samples to third parties, including TTAM Research, without express permission for each transfer. California consumers represent about 1.8 million of the approximately 10 million genetic profiles in 23andMe's inventory, according to California's court filings.
U.S. Bankruptcy Judge Brian Walsh had overruled California's objection, and similar objections from other states opposed to the sale on June 27. He said Monday that California customers would not be harmed because they retained the right to delete their genetic data even after the sale is complete.
TTAM has said it would continue to protect customers' genetic data and maintain 23andMe's privacy policies, including customers' right to delete their data. Wojcicki was 23andMe's CEO before its bankruptcy filing, and her new nonprofit's name is an acronym formed from the first letters of the words 'twenty-three and me.'
23andMe filed for bankruptcy after a drop-off in consumer demand and a 2023 data breach that exposed millions of customers' genetic data.
The case is California v. 23andMe Holding Co., U.S. District Court for the Eastern District of Missouri, No. 25-cv-0099
For California: Bernard Eskandari and Daniel Nadal of the Office of the Attorney General of California
For 23andMe: Christopher Hopkins and Paul Basta of Paul Weiss, among others
Read more
California fails to stop 23andMe founder from re-acquiring company
23andMe's founder Anne Wojcicki wins bid for bankrupt DNA testing firm
DNA testing firm 23andMe files for bankruptcy as demand dries up
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
4 minutes ago
- The Independent
Judge stops hazardous waste shipments to Michigan landfill from five states
A judge has stopped government contractors in five states from sending hazardous waste to a Michigan landfill after a year of legal challenges by Detroit-area communities concerned about possible environmental impacts. Wayne County Judge Kevin Cox said the risk was 'substantial and compelling' and outweighed the financial harm to Wayne Disposal, a suburban Detroit landfill operated by trash giant Republic Services. Cox's injunction, signed Tuesday, bars Wayne Disposal from accepting waste from Luckey, Ohio; Middletown, Iowa; Deepwater, New Jersey; Lewiston, New York; and St. Louis. Those cleanup sites are managed by the U.S. Army Corps of Engineers and its contractors. The waste includes materials that were produced for weapons, early atomic energy and other uses before and after World War II. Shipments 'have been halted and we are working closely with our contractors to determine the next steps,' Jenn Miller, a spokesperson in the Army Corps environmental division, said Thursday. Tainted soil in Lewiston is a legacy of the Manhattan Project, the secret government effort to develop atomic bombs during World War II. While the lawsuit in Michigan was pending, officials recently decided to send Lewiston soil to a Texas landfill to keep the project moving, Miller said. Wayne Disposal in Van Buren Township, 25 miles (40.2 kilometers) west of Detroit, is one of the few landfills in the U.S. that can handle certain hazardous waste. Republic Services has repeatedly said the landfill meets or exceeds rules to safely manage hazardous materials. The company said the court order was "overly broad.' 'Responsible management and disposal of these waste streams is an essential need, and Wayne Disposal, Inc. is designed and permitted to safely manage this material,' the company said. But critics say there are too many homes, schools and waterways near the landfill, making any leak at the site possibly dangerous. 'We stood strong with our community allies speaking collectively with one voice that we do not want this type of waste in our community," said Kevin McNamara, the elected supervisor in Van Buren Township.
Reuters
5 minutes ago
- Reuters
Toronto FC land Rapids M Djordje Mihailovic for $8M
August 7 - Toronto FC completed a previously reported cash-for-player trade for Colorado Rapids midfielder Djordje Mihailovic on Thursday. The Rapids received $8 million in the trade, a club record. A report by GiveMeSport earlier this week said the deal will also include $1 million in add-ons and a sell-on percentage. Mihailovic, 26, will join the fourth MLS club of his career. The native of Jacksonville, Fla., said in a statement that he requested the trade to Toronto. "I want to thank everyone at the Colorado Rapids for everything they've done for me over the past year. This club brought me back from Europe and supported me in my dream of representing the United States in the Olympics," Mihailovic's statement said. "Most recently, I asked for a move to Toronto for personal reasons, and I deeply appreciate the professionalism and understanding the Rapids showed in facilitating this transfer. I'm grateful to everyone I've met here; teammates, coaches, staff, and fans, and I'll always carry those positive memories with me." Mihailovic joined the Rapids ahead of the 2024 season after time with the Chicago Fire (2017-20), CF Montreal (2021-22) and the Dutch club AZ Alkmaar (2023). Mihailovic has nine goals with seven assists through 24 matches (all starts) this season, on pace to break the career highs of 11 goals he set last year. In 187 career MLS matches, Mihailovic has recorded 40 goals and 21 assists. He has also made 11 appearances for the USMNT, scoring one goal. "Djordje made a meaningful impact during his time in Colorado, and while we're disappointed to see him go, especially at this stage in the season, we wish him well in the next chapter of his career," Rapids president Padraig Smith said in a statement. "Our ambition is to build a championship contender, and we're committed to turning Djordje's departure into an opportunity to further strengthen the roster as we continue our quest to bring an MLS Cup back to Colorado." The Rapids (8-11-6, 30 points) currently occupy the ninth and final playoff position in the Western Conference, while Toronto FC ( 5-13-6, 21 points) are a distant 14 points out of ninth in the East. --Field Level Media
The Guardian
5 minutes ago
- The Guardian
Trump signs order to allow crypto and real estate investments in retirement plans
Donald Trump signed an executive order on Thursday that aims to allow cryptocurrency and other alternative assets like private equity and real estate to be included in the investments in 401(k) retirement accounts. The order smoothes the way for fund managers to tap into trillions of dollars of Americans' retirement savings. It could open up a vast new funding source to managers of so-called alternative assets outside stocks, bonds and cash, though critics say it also could bring too much risk into retirement investments. Such a move would be a boon for big alternative asset managers by opening the $12tn market for retirement funds, known as defined contribution plans, to their investments. Trump's executive order is part of his administration's broader embrace of the cryptocurrency lobby and rollback of regulations on digital currencies. Formerly a skeptic about crypto who said bitcoin 'seemed like a scam', Trump has this year launched his own lucrative cryptocurrency enterprise, courted crypto supporters and promised to make the US into the 'crypto capital of the world'. 'A combination of regulatory overreach and encouragement of lawsuits filed by opportunistic trial lawyers has stifled investment innovation,' Trump said in the order. 'My Administration will relieve the regulatory burdens and litigation risk that impede American workers' retirement accounts from achieving the competitive returns and asset diversification necessary to secure a dignified, comfortable retirement.' There is concern among some analysts that allowing cryptocurrency to be included in 401(k) contributions carries a high degree of risk, however, given that crypto is inherently speculative and in recent years has been the subject of rampant fraud. 'Opening up the $9tn 401(k) industry to alternative assets overall is reasonable, but if these assets and sectors are highly speculative and underregulated, it could be a big mistake,' said Anil Khurana, executive director of Georgetown University's Baratta Center for Global Business. Trump also issued a separate executive order on Thursday targeting the alleged 'debanking' of conservatives, promoting a longstanding right-wing grievance that banks refused them access to their services on political grounds. Prominent Silicon Valley investors took up the issue over the past year as part of a push to ease regulatory scrutiny of crypto assets. The order on 40(1)k contributions directs the labor secretary to consult with her counterparts at the treasury department, the SEC and other federal 'regulators to determine whether parallel regulatory changes should be made at those agencies', a White House statement said. The new investment options carry lower disclosure requirements and are generally less easy to sell quickly for cash than the publicly traded stocks and bonds that most retirement funds rely on. Investing in them also tends to carry higher fees and, in the case of cryptocurrency, exposes retirees to a market known for its volatility. In defined contribution plans, employees make contributions to their own retirement account, frequently with a matching contribution from their employer. The invested funds belong to the employee, but unlike a defined benefit pension plan, there is no guaranteed regular payout upon retirement. Whatever changes may come from Trump's order, it likely will not happen overnight, private equity executives say. Plaintiffs lawyers are already preparing for lawsuits that could be filed by investors who do not understand the complexity of the new forms of investments. The world's largest asset manager, which lobbied for the change, is not waiting. BlackRock plans to launch its own retirement fund that includes private equity and private credit assets next year. However, CEO Larry Fink acknowledged in a recent call with analysts that the change may not be an immediate boon for the industry. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion 'The reality is, though, there is a lot of litigation risk. There's a lot of issues related to the defined contribution business,' Fink said. 'And this is why the analytics and data are going to be so imperative way beyond just the inclusion.' The Department of Labor issued guidance during Trump's previous presidency on how such plans could invest in private equity funds within certain limits, but few took advantage, fearing litigation. Proponents argue that younger savers can benefit from potentially higher returns on riskier investments in funds that get more conservative as they approach retirement. Democratic aenator Elizabeth Warren wrote in June to the chief executive of annuity provider Empower Retirement, which oversees $1.8tn in assets for more than 19 million investors, asking how retirement savings placed in private investments could be safeguarded 'given the sector's weak investor protections, its lack of transparency, expensive management fees, and unsubstantiated claims of high returns',
