INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of GeneDx Holdings Corp. - WGS

PRNewswire 25-Feb-2025 5:00 PM

NEW YORK, Feb. 25, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of GeneDx Holdings Corp ("GeneDx" or the "Company") (NASDAQ:WGS). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.

The investigation concerns whether GeneDx and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

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On February 5, 2025, Grizzly Research ("Grizzly") published a report entitled "Insiders Attest That GeneDx (NASDAQ:WGS) Is Actively Committing Widespread Fraud". The Grizzly report asserted, among other things, that GeneDx's "growth is largely an illusion, driven by fraudulent schemes and illegal tactics deliberately aimed at exploiting Medicaid and Medicare systems to artificially inflate revenue"; that "[t]estimonies from former employees and ongoing litigation suggest that GeneDx has inflated its revenue through an illegal practice known as 'code stacking'", which "enables the company to bill insurance providers for services that do not meet the required criteria"; and that "CEO Katherine Stueland and CFO Kevin Feeley have consistently sold their shares immediately upon vesting, without ever engaging in open market purchases", a "pattern suggest[ing] that insiders may be aware of an imminent risk that will significantly impact the company." 

On this news, GeneDx's stock price fell $4.84 per share, or 6.72%, to close at $67.18 per share on February 5, 2025.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980

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SOURCE Pomerantz LLP