Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection and is seeking a buyer as part of its restructuring efforts, following significant financial and operational challenges. CEO and co-founder Anne Wojcicki has resigned, with Joe Selsavage stepping in as interim CEO, as the company hopes the court-supervised process will help reduce costs and resolve liabilities. This development follows a workforce reduction and board resignation, marking a pivotal moment for the once-leading company in the genetic testing industry.
Posts tagged as “Chapter 11”
Rudy Giuliani, the former mayor of New York City and attorney for former President Donald Trump, has filed for Chapter 11 bankruptcy in New York after being ordered to pay $148 million in damages to two former Georgia election workers. The filing estimates his liabilities to be between $100,000,001 and $500 million, and his assets to be between $1 million and $10 million. This is the latest development in Giuliani’s legal troubles, and it remains to be seen how this filing will affect his future.
WeWork, the once high-flying office-sharing company, has filed for Chapter 11 bankruptcy protection in the US and Canada. The company reported liabilities ranging from $10 billion to $50 billion, and is now looking to reduce its debt burden. Despite its high valuation, WeWork was unable to turn a profit and its business model was not sustainable in the long run, highlighting the risks associated with investing in high-growth startups.
Johnson & Johnson has announced a settlement of nearly $9 billion to cover thousands of lawsuits alleging that its baby powder containing talc caused cancer. The settlement, which is more than quadruple the amount previously set aside, is one of the largest product-liability settlements in U.S. history and will be payable over the next 25 years. The company has been adamant that its products are safe, but has decided to settle the cases in order to avoid the costs and risks associated with a prolonged legal battle.
SVB Financial Group, the former parent of Silicon Valley Bank, has filed for Chapter 11 bankruptcy protection after the tech-reliant bank was shut down by regulators due to a run on the financial institution. The filing does not include Silicon Valley Bank, SVB Securities, SVB Capital's funds, or its general partner entities. The company, its CEO, and its chief financial officer were targeted this week in a class action lawsuit that claims the company didn’t disclose the risks of future interest rate increases. The FDIC is expected to provide more information in the coming days.
Alex Jones, host of Infowars, is reportedly holding firearms for two of his employees who were charged in connection with the Jan. 6 attack on the Capitol. This was revealed in a bankruptcy statement filed Tuesday, and Jones has confirmed that the lawyers of the two employees requested that he store their guns at his residence. It is unclear why their lawyers asked this and how long the guns have been in Jones' possession.
The costume and party supplies chain Party City has filed for Chapter 11 bankruptcy protection, and is in the process of an expedited restructuring that will substantially lower its debt and free up cash. The company's 800+ stores and website will remain open, and its franchise stores, subsidiaries outside of the U.S., and foil balloons Anagram business are not part of the restructuring. The filing comes as the U.S. retail industry continues to suffer from persistently high inflation and a pullback in customer spending.