HBSS Investigates Claims Against GeneDx Holdings (WGS) in Securities Class Action Suit Following Massive Impairment Charge

Firm is Securitizing Fabric Genomics Acquisition

SAN FRANCISCO, June 29, 2026 /PRNewswire/ -- Hagens Berman (HBSS), a national leader in securities litigation, is actively investigating claims in a securities class action lawsuit against GeneDx Holdings (NASDAQ: WGS) and its executives, alleging defendants misled investors about the Fabric Genomics acquisition and synergy potential.

The suit follows a devastating 49% stock collapse on May 5, 2026 in response to the company's disastrous Q1 2026 earnings report, including a $31.2 million impairment charge.

The firm urges GeneDx investors who suffered significant losses to contact the firm now.

Class Period: Apr. 16, 2025 – May 4, 2026
Lead Plaintiff Deadline: Aug. 3, 2026
Visit: www.hbsslaw.com/investor-fraud/wgs
Contact the Firm Now: [email protected]
                                       844-916-0895

The GeneDx Securities Class Action: The Fabrics Genomics Discrepancy

The complaint alleges that GeneDx falsely touted the acquisition of Fabric Genomics as a cornerstone of its efficiency and future profitability.

But on May 4, 2026, GeneDx reported dismal Q1 2026 financial results which included a massive tenfold increase in net loss compared to the prior year period. The Fabric Genomics business (which reported a $2.5 million revenue miss) was the largest contributor to the loss, as GeneDx recorded impairment charges related to the unit totaling $31.2 million, or about 94% of the cash paid for it just one year ago.

In addition, GeneDx's ARR fell about $200 short, a surprise blamed on a huge, adverse change in product mix toward genome whose ARR was only half that of exome.  The company also said that exome and genome revenue growth would be "at least 20%," substantially lower than it said as recently as February. As a result of GeneDx's changed growth narrative, the company slashed 2026 revenue guidance by 12%.

Leadership Maneuver

In the wake of the stock price cratering, GeneDx recently appointed a new President, Mark Gardner. Hagens Berman is investigating whether this leadership change is causally related to alleged failures that preceded the May collapse.

"The complaint alleges that investors were sold a vision of technological synergy, only to be hit with a massive impairment charge," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.  "We're investigating whether GeneDx's leadership knew of a disconnect between their public projections and the internal reality of their acquisitions."

If you invested in GeneDx and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to other frequently asked questions about the GeneDx case and the firm's investigation,  read more »

Whistleblowers: Persons with non-public information regarding GeneDx should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

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SOURCE Hagens Berman Sobol Shapiro LLP