Core Viewpoint - A class action lawsuit has been filed against Fortrea Holdings Inc. for allegedly misleading investors regarding its financial performance and business prospects following its spin-off from Labcorp Holdings Inc. [1][5] Group 1: Company Background - Fortrea Holdings Inc. was spun off from Labcorp Holdings Inc. in June 2023, becoming a standalone publicly traded company [3] - Following the spin-off, Fortrea entered into transition services agreements with Labcorp for various support services [3] Group 2: Financial Performance - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA expectations for 2025 were not aligned with prior forecasts, leading to a significant stock price drop of 10.38 [4] - The company indicated that its Pre-Spin projects were underperforming and that post-spin work was not progressing quickly enough to compensate for the older projects' economic impact [4] Group 3: Allegations in the Lawsuit - The lawsuit claims that Fortrea overestimated revenue contributions from Pre-Spin projects and overstated potential cost savings from exiting transition services agreements [5] - It is alleged that the company's previously announced EBITDA targets for 2025 were inflated, misrepresenting the viability of its post-spin business model and financial prospects [5]
FORTREA ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Fortrea Holdings Inc. and Encourages Investors to Contact the Firm