GeneDx Holdings Corp. (WGS) Investigation

GeneDx operates a data-driven clinical diagnostics business model focused on rare and ultra-rare disease testing emphasizing its whole genome sequencing and whole exome sequencing tests as primary growth  drivers.

The company derives its revenue primarily from clinical diagnostic testing, billing payers (insurance providers, health systems, and patients) for ordering genome and exome tests, and highlights its average reimbursement rate (“ARR”) from the payers. To a lesser extent, the company’s revenues come from non-core biopharma and data partnerships (including the Fabric Genetics acquisition).

In the past, GeneDx has focused investors on its genome and exome tests -- “[w]e believe the number of resulted exome and genome tests in any period is important and useful to investors[.]”

GeneDx has touted its genome and exome growth and its “consistent trend of acceleration.” The company also emphasized the durability of its ARR which was $3750 in 2025, and which management conveyed in February (5 weeks into Q1) would be flat for 2026. Also important to investors, management stressed that genome and exome 2026 revenue and volume growth would be 33% to 35% with a “baseline” of 33% for Q1 2026.

But, on May 4, 2026, GeneDx’s growth narrative abruptly changed.

That day, GeneDx reported dismal Q1 2026 financial results which included a massive tenfold increase in net loss compared to the prior year period. In contrast to its February assurances, the company’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 in February. As a result of GeneDx’s changed growth narrative, the company slashed 2026 revenue guidance by 12%.

The market swiftly reacted, sending the price of GeneDx shares crashing 49%.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the WGS investigation about?

We are investigating whether GeneDx may have intentionally or recklessly misled investors about key changes in its product mix that have dramatically reduced their growth expectations, and when management first knew of the product shift.

WHAT SHOULD I DO?

I worked at WGS. What should I do?

If you were an employee of WGS, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in WGS, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any WGS investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.