Let’s start with this week’s chaotic events surrounding the bankrupt genetic testing startup, 23andMe Holding Co.:
Fast-forward to Thursday: Bloomberg reports the worst fear for 15 million 23andMe customers: US Bankruptcy Judge Brian C. Walsh has granted the defunct genetic testing startup permission to sell its massive genetic database, potentially ending up in the hands of private equity firms that will find new ways to monetize the sensitive data.
Here’s more from the report:
Under the sale procedures, the company set quick deadlines for potential bidders, including May 7 when definitive offers are due, and a final hearing the following month.
But US Bankruptcy Judge Brian C. Walsh required the company to slow the overall pace by two weeks, in part to accommodate his schedule and in part to give creditors a chance to weigh in before the court makes a final decision on a buyer.
“My overall reaction to the timeline is that it’s pretty tight,” Walsh said at the company’s first bankruptcy hearing, held in St. Louis. At his request, the company agreed to push back the final court hearing for possible sale from June 2 to June 17.
Walsh’s ruling didn’t resolve concerns raised by the looming auction of the sensitive data or complaints from shareholders about the months 23andMe spent trying to find a buyer before filing for court protection earlier this week.
Walsh at the hearing said speed in the sale process is partly justified because the company spent so much time trying to find a buyer before it filed bankruptcy. But the goal, he added, should be to “balance the desire to move quickly with the desire to avoid collateral damage.”
Why would someone want to send their dna and personal information to a company they know nothing about. No one can be trusted in these times. Knowing my distant ancestors means nothing to me.