Scott+Scott Attorneys at Law LLP has filed a securities class action against GeneDx Holdings Corp. (WGS) on behalf of persons and entities that purchased or otherwise acquired GeneDx securities between April 16, 2025 through May 4, 2026. This case has been filed in the USDC – CT.
On May 4, 2026, the price of the Company’s shares closed at $67.93. After hours, the Company disclosed that its Q1 financial results had missed for both its exome and genome lines, and cut its 2026 guidance from $540-555 million to $475-490 million.
During the related earnings call, the Company disclosed that the average reimbursement rate came in at $3,300, or $200 below expectations. It also disclosed that it had taken a goodwill impairment charge of $31.3 million as a part of the Fabric Genomics acquisition – after paying $36.5 million for the Company only a year before.
On this news, GeneDx’s share price fell over 49%, or $33.42 per share, from the close on the previous day.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, it alleges that Defendants failed to disclose to investors that: (1) the Company may have misled investors about the importance of Fabric Genomics; (2) as a result, the Company’s margins would suffer; (3) the company’s average reimbursement rates were not as “durable” as previously disclosed; (4) as a result of the foregoing, the Company’s gross margins would decline; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.