The modular decomposition of a graph $G$ is a natural construction to capture key features of $G$ in terms of a labeled tree $(T,t)$ whose vertices are labeled as "series" ($1$), "parallel" ($0$) or "prime". However, full information of $G$ is provided by its modular decomposition tree $(T,t)$ only, if $G$ is a cograph, i.e., $G$ does not contain prime modules. In this case, $(T,t)$ explains $G$, i.e., $\{x,y\}\in E(G)$ if and only if the lowest common ancestor $\mathrm{lca}_T(x,y)$ of $x$ and $y$ has label "$1$". Pseudo-cographs, or, more general, GaTEx graphs $G$ are graphs that can be explained by labeled galled-trees, i.e., labeled networks $(N,t)$ that are obtained from the modular decomposition tree $(T,t)$ of $G$ by replacing the prime vertices in $T$ by simple labeled cycles. GaTEx graphs can be recognized and labeled galled-trees that explain these graphs can be constructed in linear time. In this contribution, we provide a novel characterization of GaTEx graphs in terms of a set $\mathfrak{F}_{\mathrm{GT}}$ of 25 forbidden induced subgraphs. This characterization, in turn, allows us to show that GaTEx graphs are closely related to many other well-known graph classes such as $P_4$-sparse and $P_4$-reducible graphs, weakly-chordal graphs, perfect graphs with perfect order, comparability and permutation graphs, murky graphs as well as interval graphs, Meyniel graphs or very strongly-perfect and brittle graphs. Moreover, we show that every GaTEx graph as twin-width at most 1 and and provide linear-time algorithms to solve several NP-hard problems (clique, coloring, independent set) on GaTEx graphs by utilizing the structure of the underlying galled-trees they explain.