GeneDx Holdings Faces Fraud Allegations and Class Action Investigation: A Shift in Investment Outlook

GeneDx Holdings (WGS) is up 7.4% after a report by Grizzly Research accused the company of widespread fraud and artificially inflated revenue. The allegations prompted Rosen Law Firm to announce an investigation into potential securities claims on behalf of shareholders. The legal action introduces significant uncertainty for investors and places the company's business practices and public disclosures under intense scrutiny.

GeneDx Holdings Corp. (NASDAQ: WGS) saw its stock rise by 7.4% following a report by Grizzly Research, which accused the company of widespread fraud and artificially inflated revenue. The allegations prompted the Rosen Law Firm to announce an investigation into potential securities claims on behalf of shareholders. The legal action introduces significant uncertainty for investors and places the company's business practices and public disclosures under intense scrutiny.

On February 5, 2025, Grizzly Research published a report entitled "Insiders Attest that GeneDx (Nasdaq: WGS) Is Actively Committing Widespread Fraud." The report stated that the company's growth is largely an illusion, driven by fraudulent schemes and illegal tactics aimed at exploiting Medicaid and Medicare systems to artificially inflate revenue. This revelation led to a 6.7% drop in GeneDx's stock price on the same day.

In response to these allegations, the Rosen Law Firm has initiated an investigation into potential securities claims. The firm encourages investors who purchased GeneDx securities to inquire about joining the prospective class action. According to the Rosen Law Firm, investors may be entitled to compensation without any out-of-pocket fees or costs through a contingency fee arrangement. To join the class action, investors can visit [https://rosenlegal.com/submit-form/?case_id=40333](https://rosenlegal.com/submit-form/?case_id=40333) or contact Phillip Kim, Esq., toll-free at 866-767-3653 or via email at case@rosenlegal.com.

The Rosen Law Firm, known for its expertise in securities class actions and shareholder derivative litigation, has a proven track record of success. The firm achieved the largest ever securities class action settlement against a Chinese company and has been ranked in the top 4 by ISS Securities Class Action Services each year since 2013. In 2019 alone, the firm secured over $438 million for investors. The firm's founding partner, Laurence Rosen, was named a Titan of Plaintiffs' Bar by law360 in 2020.

The ongoing investigation and potential class action lawsuit add a layer of uncertainty to GeneDx's business outlook. Investors are advised to stay informed and consider their legal options, especially those who purchased shares during the period in question. The Rosen Law Firm's experience and track record make it a reputable choice for investors seeking representation in this matter.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250826dc59622/rosen-law-firm-encourages-genedx-holdings-corp-investors-to-inquire-about-securities-class-action-investigation-wgs
[2] https://www.prnewswire.com/news-releases/rosen-law-firm-encourages-genedx-holdings-corp-investors-to-inquire-about-securities-class-action-investigation--wgs-302539238.html