Overview

A class action lawsuit has been filed against GeneDx Holdings Corp. (“GeneDx” or the “Company”) (NASDAQ : WGS) and certain of the Company’s senior executive officers (collectively, “Defendants”), alleging violations of the federal securities laws. The GeneDx lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired GeneDx common stock between April 16, 2025, and May 4, 2026, inclusive (the “Class Period”). Investors have until August 3, 2026, to seek appointment as lead plaintiff of the GeneDx class action lawsuit.

GeneDx is a genomics company that provides genetic testing services for diagnosing pediatric and rare diseases. In April 2025, GeneDx announced that it had agreed to acquire Fabric Genomics, an AI-driven genomic interpretation company. GeneDx completed the acquisition for Fabric for total consideration of $36.5 million. 

The complaint alleges that Defendants made materially false and misleading statements regarding the Fabric acquisition and its expected impact on the Company’s business, operations, and prospects. Throughout the Class Period, Defendants represented that the acquisition would expand GeneDx’s addressable market, create scalable and recurring software-based revenue streams, improve margins, and generate efficiencies with GeneDx’s core business.

In truth, the complaint alleges that Defendants knew, or recklessly disregarded, significant problems with Fabric’s viability and its ability to positively contribute to GeneDx’s business. Defendants allegedly concealed these adverse facts while continuing to promote the acquisition’s expected benefits, causing GeneDx common stock to trade at artificially inflated prices.

The truth emerged after the market closed on May 4, 2026, when GeneDx reported its first quarter 2026 financial results. The Company disclosed that it had missed revenue estimates for both its exome and genome lines, reduced its full-year revenue guidance from $540-$555 million to $475-$490 million, and recorded an impairment loss of more than $31 million directly attributable to Fabric. 

During the Company’s earnings call, GeneDx’s CEO admitted that Fabric was best suited only for international markets and that the Company had much left to do in order to fully integrate Fabric into GeneDx. 

On this news, GeneDx’s stock price declined $33.42 per share, or nearly 50%. 

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If you purchased or otherwise acquired GeneDx common stock between April 16, 2025, and May 4, 2026, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the GeneDx class action lawsuit is August 3, 2026.