GeneDx Investors Face Deadline in Securities Class Action

The litigation, Basma v. GeneDx Holdings Corp., claims the company and its top executives violated the Securities Exchange Act of 1934 by failing to disclose critical viability issues within Fabric Genomics. GeneDx, which provides genetic testing services, acquired the AI-focused firm in April 2025. The lawsuit alleges that these undisclosed problems negatively impacted the company’s broader operations.

Financial fallout became apparent on May 4, 2026, when GeneDx reported its first-quarter results. The company revealed a sharp decline in adjusted gross margins—falling from 74% to 69%—and slashed its projected earnings from a range of $540–$555 million down to $475–$490 million. Additionally, the company recorded a $31.3 million impairment loss linked to the Fabric Genomics acquisition. Following this disclosure, GeneDx stock plummeted by more than 49%. Investors seeking to participate as lead plaintiff can contact attorneys Ken Dolitsky or Michael Albert at Robbins Geller Rudman & Dowd LLP.