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Genetic Data for AI Training After Acquisitions: Rising Litigation Risk
Growing Litigation Risk from Genetic Data Repurposing
Recent class action lawsuits against Tempus AI, Inc., a healthcare technology company, highlight a burgeoning legal risk: the repurposing of genetic and clinical data—initially collected for diagnostic or treatment purposes—for AI model training, analytics, and commercialization following corporate acquisitions. These lawsuits scrutinize the adequacy of consent and de-identification practices when genetic data is utilized for AI applications.
Expanding State Genetic Privacy Regulations
Concurrently, the landscape of genetic privacy regulation is rapidly expanding across several U.S. states, including Illinois, South Dakota, Utah, and California. These states are enacting distinct frameworks with significant enforcement mechanisms, moving beyond the baseline set by HIPAA. Organizations holding genetic datasets must now treat data governance as a core enterprise risk issue, particularly ensuring consent scope and state-law compliance are central considerations during M&A diligence and integration.
*Source: Crowell & Moring LLP (2026-05-07)*
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