23andMe Obtains Court Approval of Chapter 11 Plan

Paul, Weiss obtained court approval for 23andMe’s plan of reorganization under chapter 11. The plan includes a settlement of up to $62 million to resolve data breach claims from its previously disclosed October 2023 cyber incident.

The leading human genetics and biotechnology company, now known as Chrome Holding Co., voluntarily filed for chapter 11 in March 2025 in the U.S. Bankruptcy Court for the Eastern District of Missouri in order to pursue an asset sale and resolve outstanding legal liabilities. In July, Paul, Weiss won an Eighth Circuit decision allowing the company’s $305 million sale to TTAM Research Institute, a California nonprofit led by 23andMe co-founder and former CEO Anne Wojcicki, to go forward.

In approving the plan, U.S. Bankruptcy Judge Brian Walsh overruled all objections and challenges from creditors. The plan includes settlements with a U.S. cyber breach class, a Canadian class and a group of claimants who opted out of the U.S. class to pursue arbitration demands. The settlement will create a fund of between $30 - $50 million for the U.S. class and a fund of $3.25 million for the Canadian class, and will provide $9 million to the arbitration claimants. The plan also includes the $10 million sale of the telehealth company Lemonaid to venture capital firm Bambumeta Ventures and appoints an administrator to oversee liquidation and distributions in addition to the settlements with data breach victims.

The Paul, Weiss team includes restructuring partners Christopher Hopkins and Paul Basta; litigation partners William Clareman, Jeffrey Recher, John Carlin and Kannon Shanmugam, and counsel Audrey Paquet and Nathan Mitchell; tax partner Robert Holo; intellectual property partners Bonnie Chen and Claudine Meredith-Goujon; corporate partners Jeffrey Marell, John Kennedy, Sung Pak and Michael Montgomery, and counsel Lyudmila Bondarenko and Robert Balis; executive compensation partner Lawrence Witdorchic; environmental partner Stefanie Gitler and counsel William O’Brien; and antitrust counsel John Magruder.