Pomerantz Law Firm Announces the Filing of a Class Action Against GeneDx Holdings Corp. and Certain Officers - WGS
NEW YORK, NY / ACCESS Newswire / July 28, 2026 / Pomerantz LLP announces that a class action lawsuit has been filed against GeneDx Holdings Corp. ("GeneDx") (NASDAQ:WGS) and certain officers. The class action, filed in the United States District Court for the District of Connecticut, and docketed under 26-cv-01203, is on behalf of a class consisting of all persons or entities that purchased or otherwise acquired shares of GeneDx common stock between April 16, 2025 and May 4, 2026, inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against GeneDx and certain of its top officials.
If you are an investor who purchased or otherwise acquired GeneDx common stock during the Class Period, you have until August 3, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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GeneDx is a genomics company that provides genetic testing services for diagnosing pediatric and rare diseases.
On April 16, 2025, GeneDx announced an agreement to acquire Fabric Genomics ("Fabric"), an Oakland, California-based firm focused on AI-driven genomic interpretation in a deal worth up to $51 million. Under the terms of that deal, GeneDx would pay up to $33 million in cash up front, with a total consideration of up to $51 million, including payments linked to milestones. The acquisition was completed on May 5, 2025.
At the time of the announcement of the Fabric acquisition, GeneDx stated in its press release that the acquisition would expand GeneDx's addressable market with multiple scalable revenue streams. Additionally, GeneDx stated that "Fabric Genomics' software transforms static data into a dynamic, recurring revenue-generating platform-driving growth through software margins and high-leverage interpretation services across geographies and clinical use cases."
When GeneDx announced that the Fabric acquisition had been completed, GeneDx CEO Katherine Stueland repeated GeneDx's prior statement that the acquisition would "unlock[ ] recurring software-based revenue streams through Fabric's interpretation as-a-service model."
According to GeneDx's last Annual Report on Form 10-K, which was filed on February 23, 2026, GeneDx completed the acquisition of Fabric for total consideration of $36.5 million, which included $3.4 million in contingent consideration. GeneDx also noted a net increase of $0.6 million in goodwill.
Pre-market on January 12, 2026, Defendants issued a press release reporting full year ("FY") 2025 revenue of $427 million and Q4 2025 revenue of $121 million. While the 2025 revenue results were in line with estimates, they were not in line with the previous four quarters where GeneDx beat estimates by an average of 14%. Likewise, GeneDx's 2026 revenue guidance of $540 to $555 million signaled year-over-year revenue growth of 26% to 30%, down from year-over-year revenue growth of 41% in 2025 and 56% in 2024. On this news, GeneDx shares fell from the January 9, 2026 closing price of $135.38 per share to close at $119.24 per share on January 12, 2026, a decline of $16.14 or 11.92%.
Following the close of trading on January 12, 2026, Defendants filed the press release with the U.S. Securities and Exchange Commission on Form 8-K, causing GeneDx shares to continue to fall and to close at $109.84 on January 13, 2026, down $9.40 from the January 12, 2026 closing price of $119.24 per share, a 7.88% decline.
After hours on May 4, 2026, GeneDx reported its financial earnings results for the first quarter of fiscal year 2026, revealing that it had missed its revenue estimates for both its exome and genome lines, and lowering its guidance for FY revenue to $475 - $490 million, down from $540 - $555 million. It was also revealed that GeneDx had written off $31.2 million, as an impairment loss directly attributable to Fabric.
Prior to this news, GeneDx shares had closed at $67.93 per share on May 4, 2026. The after-hours disclosures caused GeneDx shares to decline precipitously in after-hours trading, dropping to a post-close low of $35.96 per share on May 4, 2026. GeneDx shares opened at $36.94 per share on May 5, 2026 and continued to fall throughout the trading day, closing at $34.51 per share. In total, the price of GeneDx stock declined by $33.42 or 49.20% from the May 4, 2026 close to the May 5, 2026 close.
While GeneDx's main segments continued to grow in 2025, taking GeneDx's stock price to a high closing price of $167.51 during the Class Period, Fabric failed to meet its goals of "driving growth" and instead has dragged GeneDx's financials down. Moreover, as Canaccord Genuity analyst Kyle Mikson wrote in a report issued after GeneDx's May 4, 2026 disclosures (with emphasis added): "GeneDx's 1Q26 results appeared to reflect the reversal of important growth drivers (e.g., ASP expansion, non-core business). ... We believe it is alarming that the problems appears more systemic in nature, as it is unclear when the company's core (whole exome sequencing and whole genome sequencing) business will recover to historical growth rates."
The complaint's claims against the Defendants arise from their alleged misrepresentations and omissions regarding GeneDx's statements regarding the impact of Fabric on the overall business of GeneDx. The complaint alleges that, throughout the Class Period, GeneDx repeatedly made statements that would have caused the average investor to believe that the Fabric acquisition would improve GeneDx's financials and create efficiencies between it and GeneDx's core business. These statements include such statements such as: "There is room to run in terms of reducing COGS in the future by combining the best of capability between GeneDx and Fabric as we lean into the best possible algorithms to optimize dry lab processes." The complaint alleges that these and similar statements made throughout the Class Period were false, and that, in truth, Defendants knew of, or recklessly disregarded, significant problems in Fabric's viability that would negatively impact GeneDx's overall business and operations. The complaint further alleges that, as a result, GeneDx's statements concerning its business, operations, and prospects lacked a reasonable factual basis, and shares of GeneDx common stock traded at artificially inflated prices during the Class Period.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP