Investor notices say GeneDx’s Fabric Genomics acquisition, a $31.2 million impairment charge, reimbursement weakness and sharply lower 2026 guidance underpin a proposed securities class action with an Aug. 3, 2026 lead-plaintiff deadline.
Hagens Berman said it is investigating claims in a proposed securities class action against GeneDx Holdings Corp. and its executives after the company’s shares fell about 49% on May 5, 2026 following Q1 2026 results. Investor notices from Hagens Berman and SueWallSt, powered by Levi & Korsinsky LLP, say the case centers on alleged misstatements about the Fabric Genomics acquisition, its integration and expected synergies, as well as reimbursement weakness and weaker-than-expected performance at the business. According to the releases, GeneDx disclosed a $31.2 million impairment charge tied to Fabric Genomics, a $2.5 million revenue miss at the unit, and a sharp increase in net loss. The notices also say GeneDx lowered full-year 2026 revenue guidance to $475 million to $490 million from $540 million to $555 million, a cut of about $65 million, and described exome and genome revenue growth as "at least 20%," below what the earlier release said the company had indicated as recently as February. Hagens Berman said GeneDx also recently appointed a new President, Mark Gardner, after the selloff and that it is examining whether the change is related to the alleged failures preceding the decline. The proposed class period in both notices runs from April 16, 2025 to May 4, 2026, with an Aug. 3, 2026 deadline for investors seeking appointment as lead plaintiff. The SueWallSt notice says the complaint names GeneDx, Chief Executive Officer Katherine Stueland and Chief Financial Officer Kevin Feeley, and includes Section 20(a) control-person claims under the Securities Exchange Act of 1934.