In re 23andMe Holding Co.: section 363(b)(1) does not let a debtor ignore state data-transfer laws (June 27, 2025) (In re 23andMe Holding Co., et al., No. 25-40976-357 (Bankr. E.D. Mo.), Memorandum Opinion, ECF No. 908 (June 27, 2025))
Even when the privacy policy allows the sale, a bankrupt seller still has to comply with state laws that restrict transferring the data; bankruptcy does not wipe them out.
Dated 17 Oct 2026Source checked 17 Oct 2026Basis: primary text
In the source's own words
“For a sale by a for-profit debtor, then, there is neither a broad preemption of state-law transfer restrictions, as in Section 541(c), nor a broad requirement that the debtor comply with those restrictions, as in Section 363(d)(1). The case law resolves this gap in favor of compliance. ... But I disagree with the Debtors’ argument that all such restrictions must give way under Section 363(b)(1) to a permissive privacy policy.”
Where it was read
Also read from the same source
- In re 23andMe Holding Co.: memorandum opinion approving the sale to TTAM Research Institute (June 27, 2025) (In re 23andMe Holding Co., et al., No. 25-40976-357 (Bankr. E.D. Mo.), Memorandum Opinion, ECF No. 908 (June 27, 2025))
- In re 23andMe Holding Co.: which privacy policy counts under section 363(b)(1) (June 27, 2025) (In re 23andMe Holding Co., et al., No. 25-40976-357 (Bankr. E.D. Mo.), Memorandum Opinion, ECF No. 908 (June 27, 2025))
- In re 23andMe Holding Co.: court declines the ombudsman's opt-in consent condition (June 27, 2025) (In re 23andMe Holding Co., et al., No. 25-40976-357 (Bankr. E.D. Mo.), Memorandum Opinion, ECF No. 908 (June 27, 2025))
- In re 23andMe Holding Co.: buyer keeps the privacy policy, deletion rights and customer notice (June 27, 2025) (In re 23andMe Holding Co., et al., No. 25-40976-357 (Bankr. E.D. Mo.), Memorandum Opinion, ECF No. 908 (June 27, 2025))
- In re 23andMe Holding Co.: memorandum opinion approving the sale (objecting states) (In re 23andMe Holding Co., et al., No. 25-40976-357 (Bankr. E.D. Mo.), Memorandum Opinion, ECF No. 908 (June 27, 2025))
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