#USA #New York #Securities Fraud #Pomerantz LLP #GeneDx

Pomerantz Law Firm Investigates GeneDx Holdings Corp

The Pomerantz Law Firm, a prominent legal firm known for its expertise in corporate and securities litigation, has initiated an investigation concerning GeneDx Holdings Corp, a publicly traded company on NASDAQ under the ticker WGS. This investigation is primarily focused on claims made by investors regarding possible unlawful business practices, including securities fraud that could significantly impact the firm’s operations and share price.

On February 5, 2025, a damning report published by Grizzly Research alleged that GeneDx may have engaged in systemic fraudulent activities. The report claimed that the company's growth figures were misleading, attributing this artificial inflation of revenue to unethical practices aimed at manipulating Medicaid and Medicare billing systems. Grizzly's elaborate accusations included the assertion that GeneDx had employed a technique referred to as 'code stacking', which allegedly enables them to bill for services that do not meet stringent insurance criteria. Consequently, this raises serious concerns regarding the company’s ethical standards and transparency with its investors.

Furthermore, the report also drew attention to the trading behavior of key executives, specifically CEO Katherine Stueland and CFO Kevin Feeley. It noted a pattern where these executives sold their shares immediately following vesting periods, without engaging in open market purchases, suggesting they might possess insider knowledge regarding impending adverse developments that could hit the company. Such actions, if proven deliberate and fraudulent, could expose them to significant legal accountability.

Reacting to these shocking allegations, GeneDx’s shares plummeted by $4.84, marking a 6.72% decline, closing at a value of $67.18 per share on the same day the report surfaced. This substantial drop in stock value has alarmed investors, prompting the reaction from Pomerantz Law Firm.

For investors concerned about their investments in GeneDx, Pomerantz Law Firm advises that they come forward to discuss these issues. Investors are encouraged to reach out to Danielle Peyton, who can be contacted via the firm's official email or phone number for further information and guidance regarding potential claims.

Established in 1986 by the notable Abraham L. Pomerantz, renowned for pioneering efforts in class action litigation, Pomerantz LLP has built a solid reputation for defending the rights of investors amid corporate misconduct. Over the past 85 years, the firm has successfully secured multimillion-dollar settlements, and its continued dedication signifies a strong commitment to investor advocacy.

As developments unfold in this situation, those holding shares in GeneDx or considering investment are strongly urged to stay informed about the actions of Pomerantz Law Firm. Participating in potential class actions or voicing concerns can be crucial during such turbulent times in the market.

For further information and to express concerns, investors can contact Pomerantz LLP directly. The firm remains at the forefront of ensuring that investor rights are upheld, combating any forms of corporate deception that threaten their financial interests.

Stay connected with updates regarding GeneDx Holdings Corp and the investigations being conducted to ensure clarity and accountability in the markets.