GeneDx Holdings Investors with Losses Can Lead Securities Lawsuit
Law firm Hagens Berman is investigating GeneDx Holdings for alleged investor misrepresentations concerning its Fabric Genomics acquisition. The company's stock plunged in May 2026 following poor financial results.
National securities litigation firm Hagens Berman is investigating claims in a potential class action lawsuit against GeneDx Holdings (NASDAQ: WGS) and its executives. The suit alleges that defendants misled investors about the Fabric Genomics acquisition and its synergy potential.
The legal action follows a significant 49% drop in GeneDx's stock price on May 5, 2026, after the company reported disappointing first-quarter 2026 financial results. These results included a $31.2 million impairment charge, primarily related to the Fabric Genomics business unit acquired the previous year.
The complaint alleges that the Fabric Genomics segment, acquired for an undisclosed sum, missed revenue expectations by $2.5 million and was subsequently subject to a $31.2 million impairment charge, representing approximately 94% of the cash paid for it. Additionally, GeneDx reported a surprising slowdown in its annual recurring revenue (ARR) growth, citing a shift in product mix towards genome services with lower ARR.
In the wake of the stock price collapse, GeneDx recently appointed Mark Gardner as its new President. Hagens Berman is examining whether this leadership change is causally linked to the alleged failures preceding the May stock decline. Investors who sustained substantial losses in GeneDx stock between April 16, 2025, and May 4, 2026, are encouraged to contact the firm. The deadline to serve as lead plaintiff in the lawsuit is August 3, 2026.