Summary：**GeneDx Faces Securities Lawsuit After 49% Stock Plunge Shocks Investors** *Investors who lost mon
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**GeneDx Faces Securities Lawsuit After 49% Stock Plunge Shocks Investors**
*Investors who lost money in WGS after its stock plunged due to allegedly misleading financial statements are urged to contact Hagens Berman.*
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### Introduction
Shares of GeneDx (NASDAQ: WGS) tumbled nearly 49% in a single trading session last week, wiping out roughly $1.2 billion of market value and prompting a wave of shareholder anger. The sharp decline followed the release of a preliminary earnings report that analysts said contained inflated revenue projections and omitted significant liabilities tied to the company’s expanding diagnostic test portfolio. Within days, the national law firm Hagens Berman announced it is investigating potential securities fraud and is inviting affected investors to join a possible class‑action lawsuit.
### Key Developments
The catalyst for the sell‑off was GeneDx’s Form 10‑Q filed on November 2, which showed a 22% year‑over‑year increase in test volume but a simultaneous 15% rise in cost of goods sold that was not disclosed in the accompanying press release. Short‑seller reports highlighted discrepancies between the reported gross margin of 38% and independent estimates that placed it closer to 28% after accounting for deferred revenue from long‑term contracts with hospital networks.
In response, GeneDx’s CEO issued a statement defending the numbers as “conservative and in line with GAAP,” while the company’s audit committee said it would review the disclosures. Nevertheless, the stock’s volatility triggered multiple trading halts, and the NASDAQ issued a notice of non‑compliance for failing to meet continued listing standards. Hagens Berman’s notice, posted on its website, claims that the alleged misstatements violated Sections 10(b) and 20‑A of the Securities Exchange Act of 1934 and encourages shareholders who purchased GeneDx stock between October 15 and November 5 to come forward.
### Industry Analysis
The diagnostic genetics sector has experienced rapid consolidation, with firms racing to capture market share in whole‑genome sequencing (WGS) and pharmacogenomics. GeneDx’s aggressive expansion into oncology panels and rare‑disease screening
