Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp Holdings Inc. [1][3] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Deslande v. Fortrea Holdings Inc., and it includes purchasers of Fortrea securities from July 3, 2023, to February 28, 2025, with a deadline of August 1, 2025, to seek lead plaintiff status [1][2] - The lawsuit alleges that Fortrea overestimated revenue contributions from ongoing projects and overstated cost savings from exiting transition services agreements (TSAs), leading to inflated EBITDA targets for 2025 [3][4] Group 2: Financial Performance and Analyst Reports - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model and stating that expected cost savings from exiting TSAs were not as significant as anticipated, resulting in a stock price drop of over 12% [4] - Following the cancellation of two scheduled conferences, Baird Equity Research downgraded Fortrea to neutral from outperform on December 6, 2024, leading to an additional stock price decline of more than 8% [5] - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not aligned with prior expectations, revealing that pre-spin projects were underperforming, which caused the stock price to fall over 25% [6] Group 3: Company Background - Fortrea is a global clinical research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices, having been spun off from Labcorp in June 2023 [2][3]
FTRE INVESTOR ALERT: Fortrea Holdings Inc. Investors with Substantial Losses Have Opportunity to Lead the Fortrea Class Action Lawsuit