javierluraschi · May 14, 2025 03:11
diff --git a/23andme-may-5-2025 b/23andme-may-5-2025
 All right, let's call our 130 matter, please 23 and me holding co appearances in the courtroom first should afternoon your honor Tom Risky-Carbon-E McDonald on behalf of the death.
 Good afternoon.
 Good afternoon, Miranda Swift from Stinson on behalf of the official committee events.
 Good afternoon, you. Good afternoon, your honor Josh Walsh on behalf of the Hambi.
 Hello.
 Good afternoon, your honor Carol Richett on behalf of the U.S. Trustee.
 Noon. Good afternoon, your honor Joshua Jones, the United States of America.
 Hello, Mr. Jones. Anyone else?
 All right, appearances on the WebEx, please.
 Good afternoon, your honor. You've got Eric Wilson of Kelly Drive proposed counsel to the creditors committee and with me online, making the plot one.
 Good afternoon, you both.
 Good afternoon, your honor. Any other thoughts on behalf of state of indiana?
 Anyone else wish to enter to parents at this time?
 Good afternoon, your honor.
 With the National Association of Attorney General on behalf of the nine client states.
 It was right.
 Good afternoon, your honor. Michael Greger of Allen, that's a special example of the minority.
 And that's what's on behalf of the PR, both detect, LLC, the landlord.
 Good afternoon.
 Oh, good afternoon, your honor. Kevin Barron, that's Dr. Cheryl.
 Good afternoon, Ms. Barnes.
 Good afternoon, your honor. Christopher Hopkins, Paul White, co-counsel to the debtor.
 Hopkins?
 Good afternoon, your honor. Galilette Jordan with the Minnesota Attorney General's Office.
 Good.
 Okay.
 Any general update before we get into the two matters on the calendar?
 I was going to ask the court if it's acceptable in the court before we get in the agenda.
 Perhaps Mr. Hopkins could give a brief update and then I'm not sure if the court saw since it was maybe 40 minutes ago,
 but the U.S. Trustee did file a notice of Um Blitzman, so talk with Ms. Ritchiex, so she'd like to give a brief update on that.
 Certainly, certainly. Okay, let's start with Ms. Hopkins.
 Thank you, your honor. Good afternoon, again, for the record, Christopher Hopkins, Paul White, is co-counsel to the debtor.
 So, first of all, thank you to the court for letting us participate remotely today.
 You know, we thought given today's agenda, we paid the estate the money and participate remotely given Mr. Ritchie.
 It's going to be handling the items on today's agenda.
 So just a few brief updates for the court.
 So, first, you know, as an update on the sale process, as I'm sure your honor notice by the lack of up filing a notice on the docket.
 We have not selected a stocking horse dinner at this time, so we're planning to move straight into the option following tomorrow's bid deadline.
 We continue to have, you know, robust interest in the sale process in our expectations that we're going to receive multiple competitive bid at tomorrow's deadline related to that with respect to the dip.
 Given that we determined not to proceed with a stocking horse bid, I'm pleased to report that we were able to work with J&D as a check lender on the terms of an amendment to the dip to ensure that the debtors maintain access to the second 25 million dollar tranche of funding available under that facility.
 So, as your honor may recall, under the original dip facility, our ability to access that second 25 million dollar tranche was, there was a milestone requirement that we had obtained approval of a stocking horse bid by May 7th that was either reasonably acceptable to the dip lender or effectively would generate sufficient proceeds to repay the dip lender in full.
 From the sale transaction that would close honor before June 30th. Under the terms of the amendment, that milestone so it being tied to a hard date has been removed.
 And the condition is now that we obtain access to the 25 million either because we receive a binding bid tomorrow that satisfies those conditions or we announce a successful bidder of the option that satisfies those conditions.
 And with where we landed on the stocking horse and with that dip amendment, we're obviously well positioned to now move the sale process forward.
 As Mr. Rispy mentioned, we saw that the CPO was appointed today. We think that's a great development. We've been preparing for the individual to come on scene and we're going to move as quickly as we can to start engaging with Professor Richards to make sure that he's getting the information he made from the access to the debtors to ensure that he can submit a report on time ahead of the June 17th.
 And finally, your honor, one item coming out of last week's hearing that was going to be heard today, this is a bit of housekeeping, was the scheduling issue on the briefing schedule for the class proof of claim issues with the cyber class action claimants and the pixel class action claimants.
 Those negotiations are proceeding well. I think we have basically landed the plane with the class council and we're in very productive discussions with pixel council.
 And so our proposal on that, and I'm not sure if they happen to be on the line today given where we are with them procedurally, but we respectfully ask the court for is sometimes either Thursday afternoon or on Friday or a quick virtual hearing to just run through.
 We expect to be able to reach an agreement and so we would just want to present the proposed schedule to your honor and make sure that the court is comfortable with how we're planning to proceed.
 Sure, I think we can make that happen. Well, tell me if this makes sense as your discussions proceed as you get a little closer to figuring out when would be the best time to do that, then reach out to Mr. Spidle and we'll get it set up for it.
 It sounds like it just be an announcement and double checking that you have in mind.
 That's perfect, John. Thank you.
 And just Mr. Robinson, just to be honest, on the record, WebEx hearing or are you talking about a short phone call, the enchangers to discuss.
 I think if we reach consensus, you're on to save the court's time.
 Hopefully, we could just file a notice of an agreed schedule with respect to each of the respective class council.
 The staff works for the court will coordinate with the claimant and if we do need the assistance of the court to get to the final resolution, we can reach out to chambers to schedule that quick hearing.
 Either way, whatever the court prefers.
 Okay, so yeah, if you've agreed on everything, I agree we don't need to have a phone call or a WebEx hearing.
 And you can just reach out to Mr. Spidle and get that finalized and on file.
 If we need to sort through some issues, then let's do that.
 So we'll do that by WebEx hearing.
 We'll do that schedule.
 Would you like me to preview that schedule with your honor informally before we file it, just to make sure it's satisfactory to the court?
 If you're just setting dates for one another to file things, I don't really need to.
 But for the hearing date, right.
 It would be important to make sure that I'm available.
 That would be we won't get far with that.
 But yes, I think I think that will work. So that sounds like a plan.
 All right, Mr. Check.
 And as Mr. Risky mentioned, the U.S. Trustee just filed a notice of appointment of Neil M. Richards of the Washington University School of Law as the CPL in this case.
 As you might imagine, given of a publicity in this case, there were many, many individuals very highly qualified individuals who expressed an interest in serving as CPL in these cases.
 The U.S. Trustee selected several of them to interview last week and ultimately chose Professor Richards.
 And also by way of update your honor, the U.S. Trustee did conduct and conclude the 341 meeting last Friday.
 So things are moving along.
 Okay, we're good. Thank you very much.
 So we move to our agenda matters. We can move to the agenda.
 Okay. So I think you put the rejection motion first for a status conference. So what's the status?
 I remember as he put the record down there, I had to call with Mr. Gregory and Ms. Jones this morning to provide them an update.
 Unfortunately, this just does not move this quickly as it should.
 You have confirmed what's remaining in this location is not genetic material.
 And it was never stored there. And I confirmed that with a landlord.
 So despite that we've had two different removals in inspections, there were some chemicals related to an onsite chemist doctor pursuant to research that he would use.
 So again, in accordance with the inspection issue, you need to again get in there. Hopefully today have that removed and that I'm fairly confident that Mr. Gregory or Ms. Jones and I will be able to resolve the issue.
 We just can't until those facts have been concluded.
 So agreeable to the court. If we could just push this another week.
 For another status conference.
 Are we doing that?
 May 20th. I think it's two weeks.
 We have a hearing scheduled two weeks out. We can if it needs to move faster than that.
 If I guess it just if possible, just so we're not waiting too far into May.
 If we could just set it for a status next week. Again, my hope is that we'll make that go away and be able to present a stipulation at that time.
 Yeah, I've got a 130 conflict next Tuesday, but I could I could do some of the morning.
 We'll make whatever work.
 Right, and they're in California. So not too early morning.
 Yes, Mr. Gregor.
 How do you think you're on the morning work process?
 Should we should we think about 11 central on the 13th?
 So why don't we continue this to 11 o'clock on the 13th?
 And if you get it resolved, naturally reach out and we'll cancel that.
 And if you're still where you are right now and need a further extension of time.
 Let's not get 50 people on the WebEx. Let's just continue it to the next the next Tuesday without without having a hearing.
 Okay. Thank you.
 Thank you.
 So the foreign representative motion.
 Yes, Your Honor, as your owners where there's various litigation pending in Canada with respect to the data breach and other things and potential class actions and other litigation.
 As your owner knows as well, the debtors have filed a adversary proceeding seeking to force or extend the stay with respect to certain of that litigation.
 We have been in productive discussions with Canadian Council on how to resolve that kind of similar long lines of this parallel track of the data breach class claims and things like that.
 But not put the cart before horse before the horse.
 We do need to have the recognition happen in Canada.
 That's something they've asked us to do as well.
 What we're seeking today is to have Matt Kavarda as representative of the debtor appointed as the foreign representatives so they can seek recognition in Canada of this procedure.
 We haven't received any objections with respect to that. We have submitted a proposed order.
 So I have to answer any questions about it, Your Honor, but that's the limited relief.
 Can you say the Canadian plaintiffs have asked you to have a case opened in Canada to implement the automatic.
 Well, they've raised the issue that we haven't.
 Oh, they pointed out that you haven't done it yet.
 I get a little different.
 Right.
 Anyone wish to be heard on the foreign representative motion.
 It appears to be in order as you say there are no objections of record. No one seems to be objecting here today.
 The motion authorised Mr. Kavarda to act as board representative under section 1505.
 I've seen your proposed order. We'll get that turned around and get that into place.
 Perfect.
 May ask your honor.
 I know what previous hearings your honor is asked if it's certain orders require priority.
 Obviously, we just have one.
 Your honor is always great about entering them promptly.
 We'll do that.
 There is a proceeding tomorrow.
 So I was hoping while I'm working at the courthouse today, I could go down and.
 I'm going to start with the clerk's office about obtaining a certified order that we need to take the Canada tomorrow.
 Sure.
 Sure.
 That won't be a problem.
 Thank you so much, Your Honor.
 All right. Any other requests for relief from the data?
 Where the committee?
 I'm a committee.
 All right.
 Very well. Thank you, everyone. We'll be adjourned.
 Thank you, Your Honor.
	All right, let's call our 130 matter, please 23 and me holding co appearances in the courtroom first should afternoon your honor Tom Risky-Carbon-E McDonald on behalf of the death.
	Good afternoon.
	Good afternoon, Miranda Swift from Stinson on behalf of the official committee events.
	Good afternoon, you. Good afternoon, your honor Josh Walsh on behalf of the Hambi.
	Hello.
	Good afternoon, your honor Carol Richett on behalf of the U.S. Trustee.
	Noon. Good afternoon, your honor Joshua Jones, the United States of America.
	Hello, Mr. Jones. Anyone else?
	All right, appearances on the WebEx, please.
	Good afternoon, your honor. You've got Eric Wilson of Kelly Drive proposed counsel to the creditors committee and with me online, making the plot one.
	Good afternoon, you both.
	Good afternoon, your honor. Any other thoughts on behalf of state of indiana?
	Anyone else wish to enter to parents at this time?
	Good afternoon, your honor.
	With the National Association of Attorney General on behalf of the nine client states.
	It was right.
	Good afternoon, your honor. Michael Greger of Allen, that's a special example of the minority.
	And that's what's on behalf of the PR, both detect, LLC, the landlord.
	Good afternoon.
	Oh, good afternoon, your honor. Kevin Barron, that's Dr. Cheryl.
	Good afternoon, Ms. Barnes.
	Good afternoon, your honor. Christopher Hopkins, Paul White, co-counsel to the debtor.
	Hopkins?
	Good afternoon, your honor. Galilette Jordan with the Minnesota Attorney General's Office.
	Good.
	Okay.
	Any general update before we get into the two matters on the calendar?
	I was going to ask the court if it's acceptable in the court before we get in the agenda.
	Perhaps Mr. Hopkins could give a brief update and then I'm not sure if the court saw since it was maybe 40 minutes ago,
	but the U.S. Trustee did file a notice of Um Blitzman, so talk with Ms. Ritchiex, so she'd like to give a brief update on that.
	Certainly, certainly. Okay, let's start with Ms. Hopkins.
	Thank you, your honor. Good afternoon, again, for the record, Christopher Hopkins, Paul White, is co-counsel to the debtor.
	So, first of all, thank you to the court for letting us participate remotely today.
	You know, we thought given today's agenda, we paid the estate the money and participate remotely given Mr. Ritchie.
	It's going to be handling the items on today's agenda.
	So just a few brief updates for the court.
	So, first, you know, as an update on the sale process, as I'm sure your honor notice by the lack of up filing a notice on the docket.
	We have not selected a stocking horse dinner at this time, so we're planning to move straight into the option following tomorrow's bid deadline.
	We continue to have, you know, robust interest in the sale process in our expectations that we're going to receive multiple competitive bid at tomorrow's deadline related to that with respect to the dip.
	Given that we determined not to proceed with a stocking horse bid, I'm pleased to report that we were able to work with J&D as a check lender on the terms of an amendment to the dip to ensure that the debtors maintain access to the second 25 million dollar tranche of funding available under that facility.
	So, as your honor may recall, under the original dip facility, our ability to access that second 25 million dollar tranche was, there was a milestone requirement that we had obtained approval of a stocking horse bid by May 7th that was either reasonably acceptable to the dip lender or effectively would generate sufficient proceeds to repay the dip lender in full.
	From the sale transaction that would close honor before June 30th. Under the terms of the amendment, that milestone so it being tied to a hard date has been removed.
	And the condition is now that we obtain access to the 25 million either because we receive a binding bid tomorrow that satisfies those conditions or we announce a successful bidder of the option that satisfies those conditions.
	And with where we landed on the stocking horse and with that dip amendment, we're obviously well positioned to now move the sale process forward.
	As Mr. Rispy mentioned, we saw that the CPO was appointed today. We think that's a great development. We've been preparing for the individual to come on scene and we're going to move as quickly as we can to start engaging with Professor Richards to make sure that he's getting the information he made from the access to the debtors to ensure that he can submit a report on time ahead of the June 17th.
	And finally, your honor, one item coming out of last week's hearing that was going to be heard today, this is a bit of housekeeping, was the scheduling issue on the briefing schedule for the class proof of claim issues with the cyber class action claimants and the pixel class action claimants.
	Those negotiations are proceeding well. I think we have basically landed the plane with the class council and we're in very productive discussions with pixel council.
	And so our proposal on that, and I'm not sure if they happen to be on the line today given where we are with them procedurally, but we respectfully ask the court for is sometimes either Thursday afternoon or on Friday or a quick virtual hearing to just run through.
	We expect to be able to reach an agreement and so we would just want to present the proposed schedule to your honor and make sure that the court is comfortable with how we're planning to proceed.
	Sure, I think we can make that happen. Well, tell me if this makes sense as your discussions proceed as you get a little closer to figuring out when would be the best time to do that, then reach out to Mr. Spidle and we'll get it set up for it.
	It sounds like it just be an announcement and double checking that you have in mind.
	That's perfect, John. Thank you.
	And just Mr. Robinson, just to be honest, on the record, WebEx hearing or are you talking about a short phone call, the enchangers to discuss.
	I think if we reach consensus, you're on to save the court's time.
	Hopefully, we could just file a notice of an agreed schedule with respect to each of the respective class council.
	The staff works for the court will coordinate with the claimant and if we do need the assistance of the court to get to the final resolution, we can reach out to chambers to schedule that quick hearing.
	Either way, whatever the court prefers.
	Okay, so yeah, if you've agreed on everything, I agree we don't need to have a phone call or a WebEx hearing.
	And you can just reach out to Mr. Spidle and get that finalized and on file.
	If we need to sort through some issues, then let's do that.
	So we'll do that by WebEx hearing.
	We'll do that schedule.
	Would you like me to preview that schedule with your honor informally before we file it, just to make sure it's satisfactory to the court?
	If you're just setting dates for one another to file things, I don't really need to.
	But for the hearing date, right.
	It would be important to make sure that I'm available.
	That would be we won't get far with that.
	But yes, I think I think that will work. So that sounds like a plan.
	All right, Mr. Check.
	And as Mr. Risky mentioned, the U.S. Trustee just filed a notice of appointment of Neil M. Richards of the Washington University School of Law as the CPL in this case.
	As you might imagine, given of a publicity in this case, there were many, many individuals very highly qualified individuals who expressed an interest in serving as CPL in these cases.
	The U.S. Trustee selected several of them to interview last week and ultimately chose Professor Richards.
	And also by way of update your honor, the U.S. Trustee did conduct and conclude the 341 meeting last Friday.
	So things are moving along.
	Okay, we're good. Thank you very much.
	So we move to our agenda matters. We can move to the agenda.
	Okay. So I think you put the rejection motion first for a status conference. So what's the status?
	I remember as he put the record down there, I had to call with Mr. Gregory and Ms. Jones this morning to provide them an update.
	Unfortunately, this just does not move this quickly as it should.
	You have confirmed what's remaining in this location is not genetic material.
	And it was never stored there. And I confirmed that with a landlord.
	So despite that we've had two different removals in inspections, there were some chemicals related to an onsite chemist doctor pursuant to research that he would use.
	So again, in accordance with the inspection issue, you need to again get in there. Hopefully today have that removed and that I'm fairly confident that Mr. Gregory or Ms. Jones and I will be able to resolve the issue.
	We just can't until those facts have been concluded.
	So agreeable to the court. If we could just push this another week.
	For another status conference.
	Are we doing that?
	May 20th. I think it's two weeks.
	We have a hearing scheduled two weeks out. We can if it needs to move faster than that.
	If I guess it just if possible, just so we're not waiting too far into May.
	If we could just set it for a status next week. Again, my hope is that we'll make that go away and be able to present a stipulation at that time.
	Yeah, I've got a 130 conflict next Tuesday, but I could I could do some of the morning.
	We'll make whatever work.
	Right, and they're in California. So not too early morning.
	Yes, Mr. Gregor.
	How do you think you're on the morning work process?
	Should we should we think about 11 central on the 13th?
	So why don't we continue this to 11 o'clock on the 13th?
	And if you get it resolved, naturally reach out and we'll cancel that.
	And if you're still where you are right now and need a further extension of time.
	Let's not get 50 people on the WebEx. Let's just continue it to the next the next Tuesday without without having a hearing.
	Okay. Thank you.
	Thank you.
	So the foreign representative motion.
	Yes, Your Honor, as your owners where there's various litigation pending in Canada with respect to the data breach and other things and potential class actions and other litigation.
	As your owner knows as well, the debtors have filed a adversary proceeding seeking to force or extend the stay with respect to certain of that litigation.
	We have been in productive discussions with Canadian Council on how to resolve that kind of similar long lines of this parallel track of the data breach class claims and things like that.
	But not put the cart before horse before the horse.
	We do need to have the recognition happen in Canada.
	That's something they've asked us to do as well.
	What we're seeking today is to have Matt Kavarda as representative of the debtor appointed as the foreign representatives so they can seek recognition in Canada of this procedure.
	We haven't received any objections with respect to that. We have submitted a proposed order.
	So I have to answer any questions about it, Your Honor, but that's the limited relief.
	Can you say the Canadian plaintiffs have asked you to have a case opened in Canada to implement the automatic.
	Well, they've raised the issue that we haven't.
	Oh, they pointed out that you haven't done it yet.
	I get a little different.
	Right.
	Anyone wish to be heard on the foreign representative motion.
	It appears to be in order as you say there are no objections of record. No one seems to be objecting here today.
	The motion authorised Mr. Kavarda to act as board representative under section 1505.
	I've seen your proposed order. We'll get that turned around and get that into place.
	Perfect.
	May ask your honor.
	I know what previous hearings your honor is asked if it's certain orders require priority.
	Obviously, we just have one.
	Your honor is always great about entering them promptly.
	We'll do that.
	There is a proceeding tomorrow.
	So I was hoping while I'm working at the courthouse today, I could go down and.
	I'm going to start with the clerk's office about obtaining a certified order that we need to take the Canada tomorrow.
	Sure.
	Sure.
	That won't be a problem.
	Thank you so much, Your Honor.
	All right. Any other requests for relief from the data?
	Where the committee?
	I'm a committee.
	All right.
	Very well. Thank you, everyone. We'll be adjourned.
	Thank you, Your Honor.