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23andMe cofounder says company 'lost its way' without 'proper governance'

1. 23andMe filed for Chapter 11 bankruptcy due to governance issues. 2. Former CEO Wojcicki resigned, raising concerns about future leadership. 3. Cofounder Avey criticized the company for lack of product development. 4. 23andMe will pursue a court-supervised sale process for restructuring. 5. Over 14 million customers' data is at risk due to security breaches.

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FAQ

Why Very Bearish?

The bankruptcy filing and leadership turmoil typically lead to a severe decline in investor confidence, akin to past biotech failures like Theranos.

How important is it?

The situation directly affects 23andMe's viability; investor sentiment could drastically shift focusing on similar biotech companies.

Why Short Term?

Immediate market reactions will likely occur as investor sentiment adjusts to recent developments.

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