Lawsuit over GeneDx’s Fabric Genomics acquisition covers investors from April 16, 2025 to May 4, 2026 and follows disclosures of lower margin, reduced outlook, reimbursement pressure and a $31.3 million impairment charge.
GeneDx Holdings Corp. is facing a securities class action tied to its acquisition of Fabric Genomics, with investors who purchased or otherwise acquired WGS securities between April 16, 2025 and May 4, 2026 having until August 3, 2026 to seek appointment as lead plaintiff. The case, Taher Basma v. GeneDx Holdings Corp., No. 26-cv-00880, is pending in the U.S. District Court for the District of Connecticut. The complaint focuses on GeneDx’s April 16, 2025 agreement to acquire Fabric Genomics, an AI-driven genomic interpretation company, in a deal worth up to $51 million, including up to $33 million in cash upfront. Plaintiffs allege GeneDx misled investors about Fabric’s viability and the acquisition’s prospects. The suit points to GeneDx’s May 4, 2026 first-quarter 2026 results, which disclosed adjusted gross margin declining from 74% to 69%, lowered projected earnings to $475 million-$490 million from $540 million-$555 million, an average reimbursement rate below expectations, and a $31.3 million impairment loss tied to Fabric. GeneDx shares fell $33.42, or 49.20%, to close at $34.51 on May 5, 2026.