Core Viewpoint - A class action lawsuit has been filed against Fortrea Holdings, Inc. for allegedly misleading investors regarding the progress and financial expectations of its Pre-Spin projects [1][2][4]. Company Overview - Fortrea Holdings, Inc. is a global contract research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices [1]. - The company was spun off from Labcorp Holdings Inc. in June 2023 and operates as a standalone publicly traded entity [2]. Financial Performance - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not meeting prior expectations, indicating that its Pre-Spin projects were underperforming [3]. - The company reported that its Pre-Spin projects were "late in their life cycle" and had lower revenue and profitability than anticipated for 2025 [3]. - Fortrea's stock price dropped by 10.38 per share following the announcement of disappointing financial results [3]. Allegations and Misstatements - The lawsuit claims that Fortrea overestimated the revenue contributions from its Pre-Spin projects and overstated potential cost savings from exiting transition services agreements (TSAs) [4]. - It is alleged that the company's previously announced EBITDA targets for 2025 were inflated, leading to an overstatement of its post-Spin-Off business model viability and financial prospects [4].
FTRE Stockholder Alert: Robbins LLP Informs Investors of the Fortrea Holdings, Inc. Class Action Lawsuit