The lawsuit, Basma v. GeneDx Holdings Corp., filed in the District of Connecticut, alleges that company executives violated the Securities Exchange Act of 1934 by withholding critical information about the viability of Fabric Genomics. GeneDx, a firm specializing in genetic testing, acquired the AI-driven genomic interpretation company in April 2025.
The alleged misrepresentations surfaced on May 4, 2026, when GeneDx reported its first-quarter results. The company disclosed a drop in adjusted gross margin from 74% to 69% and slashed its annual revenue projections by millions. Additionally, the firm recorded a $31.3 million impairment loss linked directly to the Fabric Genomics integration. Following these disclosures, GeneDx shares plunged more than 49%. Investors seeking to act as lead plaintiff in the case, represented by Robbins Geller Rudman & Dowd LLP, must file their motions by the August 3 deadline.
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