Board upheaval at 23andMe as all independent directors exit over CEO's privatisation plan

The resignations people the latest situation for the genetic-testing institution aft it struggled to find a profitable concern exemplary and was deed with a class-action suit implicit a information breach

All of 23andMe's autarkic directors resigned from its committee this week, a uncommon determination that marks the latest situation for the genetic-testing company.

The resignations travel drawn-out negotiations with 23andMe CEO and co-founder Anne Wojcicki, who wants to instrumentality the institution private. In a Tuesday missive addressed to Wojcicki, the 7 directors said they had yet to person a "a afloat financed, afloat diligenced, actionable connection that is successful the champion interests of the non-affiliated shareholders" from the main enforcement aft months of efforts.

The directors said they would beryllium resigning effectual instantly - arguing that, portion they inactive believed successful 23andMe's mission, their departures were for the champion owed to Wojcicki's concentrated voting powerfulness and a "clear" quality of sentiment connected the company's future.

Wojcicki aboriginal responded to the resignations successful a memo to employees, published successful a securities filing, saying she was "surprised and disappointed" by the directors' decision. Still, she maintained that taking 23andMe backstage and "outside of the abbreviated word pressures of the nationalist markets" would beryllium champion for the institution agelong term.

Wojcicki added that 23andMe would instantly beryllium identifying autarkic directors to articulation the board. Wojcicki, who holds 49% of the voting powerfulness astatine 23andMe, was the lone remaining committee subordinate listed connected the company's website arsenic of Thursday. A spokesperson had nary further updates to stock erstwhile reached by The Associated Press.

23andMe, which went nationalist successful 2021, has struggled to find a profitable concern exemplary since. The institution reported a nett nonaccomplishment of $667 cardinal for its past fiscal year, much than treble the nonaccomplishment of $312 cardinal for the twelvemonth prior.

Shares for 23andMe person besides plummeted - with the company's banal closing astatine 33 cents Thursday, down much than 97% since its 2021 banal marketplace debut, according to FactSet.

Wojcicki announced her volition to instrumentality 23andMe private, by mode of acquiring each outstanding shares that she doesn't own, successful April. Wojcicki besides said that she wished to support power of the institution and was not consenting to enactment alternate transactions from different bidders. She submitted a connection successful precocious July, but the board's evaluating committee recovered it to beryllium wanting.

Beyond the resignations, 23andMe has made different a fistful of different headlines successful caller months - peculiarly astir privateness concerns. Last week, 23andMe agreed to wage $30 cardinal successful currency to settee a class-action suit accusing the institution of failing to support customers whose idiosyncratic accusation was exposed successful a 2023 information breach.

23andMe has shared preliminary enactment of the settlement, which is acceptable to beryllium heard by a justice for support adjacent month. In a statement, a spokesperson said that the institution looked guardant to finalizing the agreement, which it judge is "in the champion involvement of 23andMe customers." The $30 cardinal outgo would settee each U.S. claims, the spokesperson added, and $25 cardinal of it is expected to beryllium covered by security coverage.