Key Dates and Disclosure Events GeneDx Shareholders Need to Know: From $51 Million Acquisition Promise to $31.2 Million Write-Off in Just 12 Months

NEW YORK, June 11, 2026 /PRNewswire/ -- April 16, 2025. May 5, 2025. July 29, 2025. October 28, 2025. February 23, 2026. May 4, 2026. Between these dates, GeneDx Holdings Corp. (NASDAQ: WGS) shareholders watched the Fabric Genomics acquisition story unravel from a bold growth catalyst into a $31.2 million impairment charge and a 49.20% single-day stock collapse. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

WGS shares fell $33.42 per share on May 5, 2026, closing at $34.51 after the Company slashed full-year revenue guidance by approximately $65 million. The lead plaintiff deadline is August 3, 2026.

April 16, 2025: The Acquisition Announcement

WGS announced an agreement to acquire Fabric Genomics for up to $51 million. The Company's press release described Fabric's software as a "dynamic, recurring revenue-generating platform" that would drive growth through software margins across geographies and clinical use cases, the securities action alleges.

May 5, 2025: Deal Closes With Recurring Revenue Promises

Management confirmed the completion of the acquisition, reiterating that Fabric would unlock recurring software-based revenue streams. The total consideration was later disclosed at $36.5 million.

July 29, 2025: Q2 Earnings Call Amplifies Integration Optimism

During the Q2 2025 earnings call, the Company described Fabric as "on track" with planned revenues and gross margins. Management stated the teams had "a fantastic time collaborating" and described room to reduce costs by combining GeneDx and Fabric capabilities, as alleged in the complaint.

October 28, 2025: Peak Margin Confidence at Q3 Call

The Company reported adjusted gross margins of 74% and average reimbursement rates exceeding $3,800. The lawsuit contends these figures represented the high-water mark before concealed deterioration began.

February 23, 2026: Q4 Results Show Early Cracks

Mix dynamics had "fluctuated," and the average reimbursement rate slipped to approximately $3,750. Despite these signals, management reaffirmed $540 to $555 million in full-year 2026 revenue guidance and described the long-term trend as "up and durable."

May 4, 2026: The Correction

After hours, the Company disclosed:

• Missed revenue estimates for both exome and genome lines
• Full-year guidance reduced to $475 to $490 million, a $65 million cut
• A $31.2 million impairment loss attributable to Fabric
• Fabric acknowledged as suited only for international markets, not the broad platform previously described
• Blended average reimbursement rate fell to $3,300, down $500 from two quarters earlier
• Adjusted gross margin declined from 74% to 69%

"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology here raises questions about the gap between internal knowledge and public statements," stated Joseph E. Levi, Esq.

Submit your claim before the deadline or call (888) SueWallSt.

ABOUT THE FIRM: For over two decades, SueWallSt has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by August 3, 2026.

Frequently Asked Questions About the WGS Lawsuit

Q: When did GeneDx allegedly mislead investors? A: The class period runs from April 16, 2025 to May 4, 2026. The complaint alleges that throughout this period, the Company made materially false and misleading statements about Fabric Genomics' integration progress and revenue contribution potential. When the true state was revealed on May 4, 2026, the stock declined 49.20%.

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, a $31.2 million Fabric impairment charge, and a $65 million reduction in full-year revenue guidance. 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 SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible as a class member.

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: 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: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

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.

CONTACT:
SueWallSt
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171

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SOURCE SueWallSt.com