Paxton announces 23andMe bankruptcy settlement tied to 2023 data breach
Texas Attorney General Ken Paxton said a bankruptcy-related settlement with 23andMe stems from a 2023 data breach that exposed personal information, including some genetic ancestry data, from 6.9 million customers worldwide.
Texas Attorney General Ken Paxton said Wednesday that his office secured a bankruptcy-related settlement with 23andMe over a 2023 data breach that affected 6.9 million customers worldwide.
The deal includes money for states and new privacy and security requirements, according to Paxton’s office.
Paxton’s office said 23andMe disclosed the breach in October 2023 after attackers accessed accounts and some information was later posted for sale on the dark web. The office said the exposed data included personal information and some genetic ancestry information. It also said the company learned of the breach months after the data became publicly available and initially denied that a breach had occurred before later blaming consumers’ account settings and password practices.
According to Paxton’s office, a multistate investigation concluded that 23andMe used unreasonable security practices and failed to put in place adequate safeguards against hacking. The company filed for bankruptcy protection in March 2025, the office said.
The settlement includes $150 million for a coalition of 42 states, but because of limited bankruptcy funds and competing claims, the states will receive $18 million immediately, Paxton’s office said. Texas is set to receive $1,266,860.
The office said the settlement also calls for enhanced security standards, comprehensive risk assessments, an independent advisory board, enforcement of state privacy laws and continued consumer data deletion rights.
Separately, Paxton’s office said 23andMe agreed to a $46.75 million class-action settlement for affected U.S. consumers who submitted claims by Feb. 17, 2026.
Paxton said companies that collect and profit from Texans’ most personal information have a legal duty to protect it.
What happens next is not clear from the announcement, but the bankruptcy settlement and the consumer class-action deal are now part of the broader resolution process tied to the breach, according to Paxton’s office.
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Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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