Hagens Berman Targets GeneDx Over Alleged Acquisition Misrepresentations

The lawsuit, covering the period between April 16, 2025, and May 4, 2026, centers on claims that GeneDx overstated the synergy potential of its Fabric Genomics unit. While the company initially pitched the acquisition as a cornerstone for future profitability, the reality revealed in the Q1 2026 earnings report proved starkly different. The unit missed revenue targets by $2.5 million, forcing the company to write off nearly 94% of the cash paid for the business just one year prior.

Beyond the impairment charges, the company struggled with a shift in product mix toward lower-margin genome offerings, which caused annual recurring revenue to fall short of expectations. GeneDx subsequently slashed its 2026 revenue guidance by 12% and lowered growth projections for its primary segments to 20%. Reed Kathrein, the partner leading the investigation, stated that the firm is scrutinizing whether leadership knowingly presented a disconnect between public projections and internal data. As the company navigates this fallout, it has appointed Mark Gardner as its new president. Investors seeking to participate in the litigation must meet the August 3, 2026, lead plaintiff deadline.