Law360 and Law.com Report Judge Allows Investor Suit Against GeneDx to Move Forward
07/10/2025A Connecticut federal judge has ruled that investors can proceed with a revised securities fraud lawsuit against GeneDx Holdings Corp., formerly Sema4, over claims it misled the market about its AI-driven data platform, Centrellis.
As covered by Law360 and Law.com, U.S. District Judge Vernon D. Oliver found that statements made about Centrellis were not protected by safe harbor provisions, since they suggested the platform already existed and was operational. The ruling cited credible testimony from former employees who said Centrellis lacked the functionality the company claimed.
The suit alleges that following Sema4’s $623 million acquisition of GeneDx Inc. in May 2022, the company promoted the deal as a major boost to Centrellis. Just months later, however, Sema4 announced layoffs and a strategic shift, and former employees said the platform “never even existed.”
The investors are represented by David Slossberg and Erica Nolan of Hurwitz Sagarin Slossberg & Knuff LLC and Glancy Prongay & Murray LLP.