AUSTIN – Texas Attorney General Ken Paxton said Wednesday he has secured a settlement of bankruptcy claims against genetic testing company 23andMe stemming from a 2023 data breach that exposed personal information, including some genetic ancestry data, of 6.9 million customers worldwide.
Paxton’s office said the settlement includes $150 million for a multistate coalition of 42 states. But because of limited funds in 23andMe’s bankruptcy estate and competing claims, the states’ recovery will be $18 million paid immediately, with Texas receiving $1,266,860.
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23andMe disclosed in October 2023 that attackers had accessed accounts affecting 6.9 million consumers. Some of the information was later posted for sale on the dark web, according to Paxton’s office, which said the company learned of the breach months after the data became publicly available. The office said 23andMe initially denied a breach and later blamed consumers’ account settings and password practices.
Paxton joined a multistate investigation that concluded 23andMe used unreasonable security practices and failed to implement adequate safeguards against hacking, the office said.
23andMe filed for bankruptcy protection in March 2025. Paxton’s office said the settlement incorporates privacy and cybersecurity requirements, including enhanced security standards, comprehensive risk assessments and creation of an independent advisory board, along with enforcement of state privacy laws and continued consumer data deletion rights.
“Companies that collect and profit from Texans’ most personal information have a legal duty to protect it,” Paxton said in a statement.
The company also agreed to a $46.75 million class-action settlement in the bankruptcy case for affected U.S. consumers who submitted claims by Feb. 17, 2026, Paxton’s office said.