Lawsuit Update
October 2024
23andMe Shareholder Lawsuit: Key Developments and What It Means for Investors
Audet & Partners, LLP is actively investigating claims related to a potential shareholder lawsuit against 23andMe, a leading genetic testing company. Recent revelations have sparked significant concerns among investors, following the abrupt resignation of all independent directors from the company’s board.
The resignations occurred after learning that CEO and co-founder Anne Wojcicki, who holds a 49% stake in the company, had been pursuing plans to take 23andMe private. The board cited Wojcicki’s failure to present a “fully-financed, fully diligenced, actionable proposal” that would safeguard the interests of non-affiliated shareholders as a primary reason for their departure.
Financial Struggles and Restructuring Plans
The potential privatization move comes amid widening fiscal losses for 23andMe, which doubled to approximately $667 million in the most recent fiscal year. Shareholders have raised concerns about Wojcicki’s strategy, fearing that the absence of competitive bidding could lead to a significant devaluation of their investments.
Implications for Shareholders
Shareholders of 23andMe may have grounds to pursue legal claims if it is proven that the executive actions surrounding the privatization plan have unfairly jeopardized their financial interests. The lawsuit could address whether the company’s leadership failed in their fiduciary duties by not considering competitive offers that could have potentially yielded better returns for public shareholders.
What’s Next?
If you are or have been a shareholder of 23andMe, you may have a claim for damages. Audet & Partners, LLP is offering a free, confidential case assessment to help shareholders understand their legal rights and options. Contact us today for more information.
