23andMe Ombudsman Beats DOJ Pushback in Bid to Hire WilmerHale

23andMe’s privacy ombudsman secured court approval to retain WilmerHale in the DNA testing company’s Chapter 11 case despite an objection from the Justice Department’s bankruptcy watchdog over potential conflicts.

Judge Brian C. Walsh of the US Bankruptcy Court for the Eastern District of Missouri said during a Tuesday hearing that he will approve Washington University law professor Neil M. Richards’ request to hire Wilmer Cutler Pickering Hale & Dorr LLP to represent him in the case. Richards is tasked with assessing how the bankruptcy may affect consumer data privacy.

The US Trustee opposed the request in June, arguing the firm isn’t “disinterested” and “represents an interest adverse to the estate.”

The bankruptcy monitor said bringing in WilmerHale to represent the ombudsman could create a conflict of interest because the firm also represents Regeneron Pharmaceuticals Inc., which made a bid for 23andMe’s assets in May, in unrelated matters.

The pharmaceutical company lost out to co-founder Anne Wojcicki and TTAM Research Institute in a $305 million deal. The DNA testing firm completed the transaction this month.

Walsh concluded that WilmerHale lacked an “incentive” to act against the estate’s interests. He said it would have been “preferable” for the ombudsman to know about the firm’s ties to Regeneron as soon as possible, but that the disclosure was relatively prompt.

He said he analyzed the nature of the firm’s work with Regeneron as well as the economics of the relationship and found that the pharmaceutical company is only a “small client” for WilmerHale.

The US Trustee said the firm “owes a continuing fiduciary duty of loyalty to both of its current clients,” making its representation of the ombudsman “untenable and unlawful” under the US bankruptcy code.

The ombudsman countered that Regeneron wasn’t on an initial list of potential parties in interest and WilmerHale had no prior knowledge of the pharmaceutical company’s involvement with 23andMe before the bid.

Husch Blackwell LLP also represents Richards.

The case is 23andMe Holding Co., Bankr. E.D. Mo., No. 25-40976, hearing 7/22/25.