#United States #San Francisco #Securities Fraud #Hagens Berman #GeneDx Holdings

Significant Legal Alert for GeneDx Holdings Corp Investors

SAN FRANCISCO, July 24, 2026 — Hagens Berman Sobol Shapiro LLP has announced that it is alerting investors in GeneDx Holdings Corp (NASDAQ: WGS) about a recently filed securities fraud class action lawsuit. This comes as many investors are experiencing substantial financial losses due to alleged misleading information disseminated by the company’s executives. The firm is encouraging affected investors to reach out as the lead plaintiff deadline is approaching on August 3, 2026.

Key Details of the Class Action

The class action pertains to the period between April 16, 2025, and May 4, 2026, focusing on allegations that GeneDx misrepresented its financial performance and integration of its acquisition of Fabric Genomics. Specifically, the lawsuit claims that the company presented an inflated vision of their technological capabilities while downplaying significant operational challenges they were facing.

Core Claims of the Lawsuit

The allegations center around several key points:

1. Misrepresentation of Integration Success: The lawsuit asserts that GeneDx and its top executives made materially false statements about the expected benefits of acquiring Fabric Genomics, suggesting that this integration would create a seamless synergy that would enhance revenue and lower operational costs.
2. Concealment of Operational Challenges: It is claimed that there were significant issues regarding the viability and integration of Fabric Genomics that GeneDx's management either knew about or irresponsibly disregarded. This included problems that likely impaired the overall performance of GeneDx, contradicting the favorable narrative put forth by the leadership.

Impact on Shareholders

The ramifications of these alleged misstatements became glaringly evident on May 4, 2026, when GeneDx announced disappointing financial results, revealing that it had missed revenue estimates for both its genome and exome testing lines. As a result, the company's share price witnessed a drastic drop of 49.2% within a single trading session.

The specifics included:

• - Drastic Miss of Revenue Estimates: Reports indicated that GeneDx’s revenue missed projections, and there was a noticeable decline in adjusted gross margins from 74% to 69%.
• - Diminished Future Revenue Projections: The full-year revenue guidance was lowered significantly, from earlier expectations of $540-$550 million to now projected figures of only $475-$490 million.
• - Staggering Impairment Loss: Further compounding the issue, GeneDx recorded a $31.2 million impairment loss tied specifically to Fabric Genomics, amounting to a staggering write-off of nearly 94% of the cash used for this acquisition just a year earlier.

Next Steps for Affected Investors

Investors who acquired shares of GeneDx Holdings Corp during the claimed class period and suffered substantial losses are encouraged to take action. The deadline to file as a lead plaintiff is fast approaching, set for August 3, 2026. Those affected or who possess additional information that could assist in the investigation should consider submitting their details to the law firm. Moreover, potential whistleblowers with non-public information about GeneDx have the opportunity to report this to the SEC, where they may qualify for rewards up to 30% of the recovery.

For further details and to determine eligibility, affected individuals should contact Hagens Berman at 844-916-0895 or visit their website for more information.

About Hagens Berman

Hagens Berman is a globally recognized plaintiffs' rights law firm specializing in corporate accountability, with a strong track record of securing over $2.9 billion in settlements for investors and consumers harmed by corporate misconduct. Follow the firm for ongoing updates about the case and other relevant news at @ClassActionLaw.