PIERRE, S.D. — South Dakota will receive $149,399 from the bankruptcy trustee handling the collapse of direct-to-consumer genetic testing company 23andMe, Attorney General Marty Jackley announced Tuesday. The payment resolves part of the state's claims arising from a 2023 cybersecurity incident that exposed the personal information of millions of customers.
State funds aimed at consumer protection
The disbursement is part of a larger arrangement in the bankruptcy case that recognizes $150 million in allowed claims for states but is constrained by the limited assets remaining in 23andMe’s estate. According to the attorney general’s office, only about $18 million will be distributed immediately from available bankruptcy funds to claimants — with South Dakota’s share earmarked for the Attorney General’s Consumer Protection Division.
The 2023 incident affected an estimated 6.9 million customers worldwide and included 11,027 people in South Dakota. Portions of stolen data surfaced for sale on the dark web after the company disclosed the breach months after the information first became accessible publicly.
“This settlement still allows South Dakotans who submitted claims by Feb. 17, 2026 to be compensated,” Attorney General Jackley said in a statement. “The filing for bankruptcy by 23andMe should not negatively impact those consumers whose personal genetic data was compromised by this company.”
How the settlements fit together
The bankruptcy trustee’s distribution supplements a separate nationwide class-action agreement. Together, the two paths create multiple channels for restitution but do not fully cover all claims because the estate’s resources are finite.
- Immediate distribution from bankruptcy estate: $18 million (total to be paid out now)
- Allowed state claims: $150 million (aggregate, not fully funded)
- South Dakota’s recovery: $149,399
- Additional consumer relief: $46.75 million from the class-action settlement
State officials stressed that individuals who filed claims by the Feb. 17, 2026 deadline remain eligible to receive compensation through the class-action process. The attorney general’s office said funds coming to South Dakota will support consumer protection work rather than individual payouts directly handled by the state.
Background and local implications
23andMe initially downplayed the incident and placed responsibility on account settings and password practices, according to the state’s announcement. The company later acknowledged the breach after confirming that credentials and other data had been exposed — an event made worse by previous compromises linked to partner services, officials noted.
| Item | Amount |
|---|---|
| Customers affected globally | 6.9 million |
| South Dakota customers affected | 11,027 |
| State allowed claims (aggregate) | $150 million |
| Immediate bankruptcy distribution | $18 million |
| South Dakota share | $149,399 |
For South Dakotans concerned about the exposure of genetic and account information, the attorney general’s office reiterated that filing a claim by the stated deadline was necessary to preserve a chance for compensation through the class-action settlement. The office also said the newly received funds will bolster the state’s work protecting consumers from similar incidents in the future.
As federal and state officials continue to confront the consequences of large-scale data breaches, this settlement highlights growing questions about how to hold technology and testing companies accountable while ensuring affected consumers receive meaningful relief.
