Tracker record · Texas · Order

Texas v. 23andMe (bankruptcy court)

Industry: Health · Track: Litigation and Enforcement

In the 23andMe bankruptcy, Texas sought protection for consumers' genetic data through the consumer privacy ombudsman process. Earlier dated events: Texas sued June 12, 2025; the bankruptcy court denied a TRO June 18, 2025; the sale of 23andMe to TTAM Research Institute for $305 million was approved June 27, 2025 over the objections of Texas and four other states. In July 2026 (announced July 14-15, 2026) a 42-state coalition settled the states' bankruptcy claims with the bankruptcy trustee, resolving allegations from the 2023 data breach that affected 6.9 million customers: $150 million in allowed claims for the states, but because of limited funds in the bankruptcy estate the actual recovery is $18 million aggregate paid immediately, with Texas receiving $1,266,860. Separately, 23andMe agreed to a $46.75 million class-action settlement in the bankruptcy. The states' settlement includes privacy and cybersecurity requirements. The sale and the claims settlement are separate dated events.

Status

Legal status
Sale to TTAM Research Institute for $305 million approved June 27, 2025; bankruptcy-claims settlement announced July 2026: $150 million in allowed claims for the states; $18 million aggregate cash recovery (Texas: $1,266,860) (Suit June 12, 2025; TRO denied June 18, 2025; sale approved June 27, 2025 (Bankr. E.D. Mo., No. 25-40976, Judge Brian C. Walsh); July 2026 bankruptcy-claims settlement (42-state coalition) over the 2023 breach of 6.9 million customers: $150 million allowed claims, $18 million aggregate cash recovery, Texas receiving $1,266,860; separate $46.75 million class-action settlement in the bankruptcy)
Allegation or finding
Finding or order
Enforceability
Binding per its terms
Procedural posture
Sale to TTAM Research Institute approved June 27, 2025 over the objections of Texas and four other states
Law checked through
October 12, 2026
Court
U.S. Bankruptcy Court, E.D. Mo. (Judge Brian C. Walsh)
Source
Texas AG release; Bloomberg Tax; Connecticut Public

Procedural events

  1. 2026-07-14: 42-state coalition announced settlement of bankruptcy claims against 23andMe with the bankruptcy trustee: $150 million in allowed claims; $18 million aggregate cash recovery; Texas allocation $1,266,860
  2. 2026-07-15: Texas Attorney General announced the state's participation in the July 2026 bankruptcy-claims settlement

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