Texas AG announces $150 million settlement against 23andMe over data breach

EL PASO, Texas (KVIA) -- Wednesday, Texas Attorney General Ken Paxton announced a $150 million settlement of bankruptcy claims against 23andMe. He said the settlement will help resolve issues from a 2023 data breach that compromised 6.9 million customers' genetic data.

23andMe offers DNA testing for people to look into their ancestry and health.

According to Paxton, recovery is limited to $18 million. Out of that total, Texas will receive $1,266,860.

In October 2023, 23andMe announced it discovered a data breach that exposed data including genetic ancestry information, according to a news release Paxton's office sent.

The news release alleged the company initially denied the breach happened and later blamed consumers for how their accounts were configured and how passwords were used.

Attorney General Paxton joined a multistate investigation that found 23andME engaged in "unreasonable data security practices and failed to implement adequate safeguards against hacking."

In March 2025, the company filed for bankruptcy protection. States participating in the investigation asserted claims from the data breach, according to Paxton.

The settlement incorporates protections like enhanced security standards, risk assessments and creating an independent advisory board, Paxton said.

He also said compliance with some state privacy laws will be enforced and continued availability of consumer data deletion rights will be preserved.

According to Paxton, the requirements aim to ensure the TTAM Research Institute, now operating as the 23andMe Research Institute, "serves as a more responsible steward of consumers' genetic information."

“The 23andMe data breach was a serious failure to protect consumers’ privacy that exposed the genetic information of millions of people,” said Attorney General Paxton. “Companies that collect and profit from Texans’ most personal information have a legal duty to protect it. This settlement sends a clear message that companies cannot cut corners on data security. It helps ensure stronger protections for consumers’ genetic information moving forward.” 

23andMe also agreed to a $46.75 million class-action settlement in the bankruptcy to provide relief to affected U.S. consumers who submitted claims in February, Paxton said.

In November, Paxton will face Democratic nominee James Talarico for a seat in the U.S. Senate.