Hagens Berman also urged WGS investors who bought shares during the April 16, 2025 to May 4, 2026 class period to seek lead-plaintiff status as allegations over the Fabric Genomics acquisition widen.
A securities fraud class action has been filed against GeneDx Holdings Corp. on behalf of investors who purchased or acquired WGS common stock between April 16, 2025 and May 4, 2026, with an August 3, 2026 deadline to seek appointment as lead plaintiff. The case alleges GeneDx and certain executives misled investors about the strategic and financial benefits of its Fabric Genomics acquisition, portraying the business as an AI-driven catalyst for recurring software revenue, dry lab efficiency and lower cost of goods sold while allegedly concealing integration and viability problems. The claims stem from GeneDx's April 16, 2025 announcement that it would acquire Fabric in a deal worth up to $51 million, including up to $33 million in cash upfront. Earlier reporting on the suit said the complaint was filed in the United States District Court for the District of Connecticut as Taher Basma v. GeneDx Holdings Corp., No. 26-cv-00880. A new investor alert from Hagens Berman Sobol Shapiro LLP says the alleged inflation in WGS shares ended on May 4, 2026, when GeneDx reported first-quarter 2026 results that missed revenue estimates for its exome and genome testing lines, showed adjusted gross margin falling to 69% from 74%, and cut full-year 2026 revenue guidance to $475 million-$490 million from $540 million-$550 million. GeneDx also disclosed an impairment charge tied to Fabric. Earlier publicity around the case described the write-down as $31.3 million, while Hagens Berman's release put it at $31.2 million, roughly 94% of the cash paid for the unit. WGS shares fell 49.2% in the following session to $34.51 from $67.93, the release said. Hagens Berman partner Reed Kathrein said the firm is examining the alleged misrepresentations tied to the Fabric integration and its touted AI-driven efficiencies.