23andMe (NASDAQ:ME) shares rebounded more than 60% on Thursday after a US judge confirmed the genetic testing company is allowed to sell customer data as part of its Chapter 11 bankruptcy proceedings.
This data, including medical and ancestry-related information from more than 15 million customers, is considered one of the company's most valuable assets.
High-profile figures such as New York Attorney General Letitia James have urged users to delete their 23andMe accounts to protect their information ahead of a potential sale.
Following the bankruptcy filing, 23andMe initially set quick deadlines for potential bidders, with definitive offers due by May 7. If multiple qualified bids are received, 23andMe plans to conduct an auction on May 14.
The final court hearing for the possible sale has been pushed back from June 2 to June 17, at the request of US Bankruptcy Judge Brian C Walsh, Bloomberg reported on Thursday.
23andMe filed for bankruptcy earlier this week following years of declining demand and in the wake of a major data breach in 2023 which compromised millions of user accounts.
Shares of 23andMe traded up 61.6% at about $0.86 on Thursday afternoon.