23andMe Settles for $16.5M in Unused Cyber Insurance Amid Bankruptcy

23andMe, now operating as Chrome Holding, has secured a $16.5 million settlement from its cyber insurers as part of its Chapter 11 bankruptcy proceedings. The agreement involves the insurers buying back unused cyber insurance coverage, with the funds earmarked to pay creditors whose claims are covered by the company's cyber policies, including those related to ongoing cyberattack litigation. The settlement also stipulates that Chrome will indemnify the insurers for claims up to the settlement amount and release them from further obligations related to the policies.

The bankruptcy court approved the settlement, which is part of a broader restructuring that included the sale of 23andMe's Personal Genome Service and Research Services business lines to TTAM Research Institute for $305 million. Under TTAM's ownership, 23andMe continues to provide DNA health and ancestry testing services. The settlement provides a mechanism for addressing outstanding cyber-related claims as the company navigates its financial and legal challenges.