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California Cannot Seek Damages From 23andMe Successor Over 2023 Data Breach · GNN Daily Breaking News

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  Speaker 1: California officials have confirmed that the state cannot pursue damages
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  Speaker 1: against the successor company to twenty three and meters over
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  Speaker 1: the massive twenty twenty three data breach that exposed genetic
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  Speaker 1: and personal information of millions of users. The ruling issued
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  Speaker 1: this week effectively shields the new corporate entity from liability
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  Speaker 1: tied to the breach, which remains one of the largest
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  Speaker 1: privacy incidents in the biotech sector. The decision stems from
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  Speaker 1: the legal structure of the acquisition that created the successor firm.
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  Speaker 1: Because the new company was formed after the breach and
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  Speaker 1: did not assume liability for past incidents, California regulators are
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  Speaker 1: barred from seeking restitution or penalties. Consumer advocates argue that
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  Speaker 1: this loophole leaves victims without recourse, highlighting weaknesses in state
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  Speaker 1: and federal privacy laws. The twenty twenty three breach compromised
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  Speaker 1: sensitive genetic data, ancestry records, and personal identifiers, sparking widespread
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  Speaker 1: concern about how such information could be misused. Lawsuits filed
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  Speaker 1: by individuals remain pending in federal court, but the state's
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  Speaker 1: inability to pursue damages narrows the scope of accountability privacy
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  Speaker 1: experts warn that the ruling sets a troubling precedent. By
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  Speaker 1: restructuring or selling assets, companies may be able to escape
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  Speaker 1: responsibility for past misconduct, leaving consumers exposed. Lawmakers and Sacramento
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  Speaker 1: have already signaled interest in tightening regulations to prevent future
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  Speaker 1: corporate successors from avoiding liability. For Californians affected by the breach,
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  Speaker 1: the announcement is a bitter setback. Many hoped the state
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  Speaker 1: would secure compensation or impose penalties to deter similar incidents. Instead,
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  Speaker 1: the burden now falls on ongoing private litigation and potential
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  Speaker 1: legislative reforms. The case underscores the growing tension between innovation
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  Speaker 1: and genetic testing and the urgent need for stronger safeguards
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  Speaker 1: as biotech firms continue to expand. The question remains whether
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  Speaker 1: existing laws can adequately protect consumers from the consequences of
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  Speaker 1: data breaches that strike at the core of personal identity.