Robbins LLP is Investigating Allegations that GeneDx Holdings Corp. (WGS) Misled Investors Regarding the Positive Impact of the Fabric Genomics Acquisition on the Company  

Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired GeneDx Holdings Corp. (NASDAQ: WGS) common stock between April 16, 2025 and May 4, 2026. GeneDx Holdings Corp is a genomics company that provides genetic testing services for diagnosing pediatric and rare diseases.

The Allegations:

According to the complaint, GeneDx announced in April 2025 that it would acquire Fabric Genomics, an AI-driven genomic interpretation company, in a transaction valued at up to $51 million. The Company stated that the acquisition would expand GeneDx's addressable market through multiple scalable revenue streams and transform static data into a recurring revenue-generating platform. Following the completion of the acquisition, GeneDx continued to represent that Fabric would unlock recurring software-based revenue streams through its interpretation-as-a-service model.

Plaintiff alleges that throughout the class period, defendants made statements that would have caused investors to believe that the Fabric acquisition would improve the Company's financial performance and create efficiencies between Fabric and GeneDx's core business. According to the complaint, these statements were materially false and misleading because defendants allegedly knew of, or recklessly disregarded, significant problems with Fabric's viability that would negatively impact the Company's business and operations.

Plaintiff further alleges that on May 4, 2026, GeneDx reported first quarter 2026 financial results and disclosed that it had missed revenue estimates for both its exome and genome lines. The Company also lowered its full-year revenue guidance to $475 million-$490 million from its prior guidance of $540 million-$550 million and disclosed a $31.2 million impairment loss attributable to Fabric. On this news, GeneDx's stock price declined by $33.42 per share, or 49.2%.

What Now: You may be eligible to participate in the class action against GeneDx Holdings Corp.  Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.