Scott+Scott Attorneys at Law LLP Alerts Investors to Its Investigation Into GeneDx Holdings Corp. (NASDAQ: WGS)

Core Viewpoint - Scott+Scott Attorneys at Law LLP is investigating GeneDx Holdings Corp. for potentially issuing misleading statements and failing to disclose material information, which may violate federal securities laws [1] Company Performance - GeneDx specializes in genetic testing for rare diseases, particularly whole exome and genome tests, and has seen a significant increase in test volume and revenue over the past two years, with quarterly E&G test volume more than doubling and revenue tripling [2] - In the first quarter of 2025, GeneDx reported flat E&G test volume and revenue for the first time in eight quarters, leading to a substantial decline in stock price [4] Allegations and Market Reaction - A report by Grizzly Research alleged that GeneDx engaged in "code stacking," inflating revenue by 25% through improper billing practices, which resulted in a nearly 7% drop in stock price on the day the report was released [3] - Following the release of the flat financial results, GeneDx's stock price fell by nearly 43% [4]