A securities class action lawsuit has been filed against GeneDx Holdings Corp. alleging that the company and certain executives failed to disclose material information, violating federal securities laws. Investors who purchased GeneDx shares between April 16, 2025 and May 4, 2026 have until August 3, 2026 to file lead plaintiff applications. The lawsuit follows a May 4, 2026 announcement where GeneDx reported a drop in adjusted gross margin from 74% to 69%, missed revenue estimates for its exome and genome lines, and lowered full-year revenue guidance to $475–$490 million from $540–$550 million. The company also disclosed a $31.2 million impairment loss related to its prior acquisition of Fabric Genomics, an AI-driven genomic interpretation company that had been touted as expanding the addressable market and transforming static data into a recurring revenue platform. On this news, GeneDx shares fell $33.42, or 49.2%.
GeneDx Holdings Corp.Missed revenue estimates, lowered guidance, and impairment loss from Fabric Genomics acquisition caused 49% stock decline.
Fabric Genomics acquisition led to $31.2 million impairment loss for GeneDx, reflecting overpayment or underperformance.