GeneDx Holdings Corp.’s (NASDAQ: WGS) stock price plummeted** after investors discovered discrepancies in the company’s financial reporting, leading to a class action lawsuit.
San Francisco-based law firm Hagens Berman Sobol Shapiro LLP is at the forefront of the lawsuit, urging investors who suffered significant losses to join the action. The deadline for potential plaintiffs to do so is August 3, 2026.
The lawsuit claims that GeneDx engaged in securities fraud, which caused the company’s stock price to artificially inflate. This, in turn, led investors to buy the stock at an unfairly high price, only to see it plummet when the truth came to light.
What happened?
GeneDx, a genetic testing company, was spun off from Quest Diagnostics in 2021. Initially, the company’s stock price rose as investors were optimistic about its growth prospects. However, things took a turn for the worse when matters came to light in May 2026 regarding the company’s accounting practices.
Investigations revealed that GeneDx had been misrepresenting its revenue, which caused a significant drop in the company’s stock price. The NASDAQ-listed stock (WGS) plummeted by an astonishing 60% in just a few trading sessions.
What this means
Investors who lost money in GeneDx are now being given the opportunity to seek compensation through this class action lawsuit. This is a chance for those affected to potentially recoup their losses and make the company accountable for its actions.
The deadline to join the lawsuit is August 3, 2026. To be eligible, investors must have bought GeneDx stock (WGS) between March 2021 and May 2026, and suffered losses as a result of the company’s alleged securities fraud.
