Levi & Korsinsky Reminds GeneDx Holdings Corp. Investors of the Pending Class Action Lawsuit With a Lead Plaintiff Deadline of August 3, 2026 - WGS

Time-Sensitive: Allegations Focus on Deteriorating Reimbursement Rates and Margin Compression Concealed From GeneDx Investors

NEW YORK, July 29, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in GeneDx Holdings Corp. (NASDAQ: WGS) of a pending securities class action. Class Period: April 16, 2025 through May 4, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.

WGS shares lost $33.42 per share, a 49.20% decline, after the Company disclosed plummeting reimbursement rates and slashed full-year revenue guidance by approximately $65 million. The Court has set August 3, 2026 as the deadline to apply for lead plaintiff appointment.

The Alleged Reimbursement Rate Deterioration

The lawsuit asserts that throughout the Class Period, management made statements that painted a misleading picture of GeneDx's reimbursement trajectory. As late as February 2026, the Company characterized the long-term reimbursement trend as "up and durable." In reality, the blended average reimbursement rate was already declining, falling from over $3,800 in Q3 2025 to approximately $3,750 in Q4 2025, before collapsing to $3,300 in Q1 2026, a drop of more than $500 per test in just two quarters.

Margin Compression in the Genomics Sector

The action claims that management obscured the trajectory of gross margin erosion even as mix dynamics shifted unfavorably:

• Adjusted gross margin peaked at 74% in Q3 2025, then fell to 69% in Q1 2026, a five-percentage-point contraction
• Average reimbursement per test declined over 13% from the Q3 2025 high to Q1 2026
• Full-year 2026 revenue guidance was cut from $540-$555 million to $475-$490 million, a reduction of approximately 12%
• Genome cost of goods sold (COGS) increased rather than declining as management had projected
• The Company shifted from projecting "more than 70%" gross margins to "at least 70%," then failed to sustain even that level
• Management attributed the shortfall partly to product mix shifts it had previously described as "favorable"

Why Reimbursement Adequacy Allegedly Matters to Investors

For a genomics diagnostics company, reimbursement rates from payers represent the core revenue driver per test delivered. As alleged, when management told investors the long-term trend was "up and durable" while rates were already compressing, shareholders were denied the information needed to accurately assess the Company's revenue trajectory and valuation.

"Investors deserve transparency about material risks that could affect their investments. When a company's core reimbursement metric is deteriorating while management characterizes the trend as durable and positive, investors are left making decisions based on an incomplete picture," stated Joseph E. Levi, Esq.

Speak with an attorney about recovering damages or call (212) 363-7500.

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.

Frequently Asked Questions About the WGS Lawsuit

Q: Who is eligible to join the WGS investor lawsuit? A: Investors who purchased WGS stock or securities between April 16, 2025 and May 4, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: How much did WGS stock drop? A: Shares fell approximately 49.20%, a decline of $33.42 per share, after the Company disclosed missed revenue estimates, slashed guidance, and revealed a $31.2 million impairment loss. Investors who purchased shares during the Class Period at artificially inflated prices may be entitled to compensation.

Q: What do WGS investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my WGS shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (212) 363-7500

Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP