Core Viewpoint - A lawsuit has been filed against Fortrea Holdings Inc. and its senior executives for potential violations of federal securities laws, stemming from allegations of overstating cost savings and revenue projections related to transition services agreements following its spin-off from Labcorp [1][2][4]. Group 1: Company Background - Fortrea Holdings Inc. is a global contract research organization that provides biopharmaceutical product and medical device development solutions. It was spun off into a standalone, publicly traded company by Labcorp Holdings Inc. in June 2023 [3]. Group 2: Allegations and Lawsuit Details - The lawsuit claims that Fortrea overstated the cost savings and margin improvements expected from exiting transition services agreements with Labcorp, as well as the revenue from pre-spin projects [4]. - The case is pending in the U.S. District Court for the Southern District of New York, titled Deslande v. Fortrea Holdings Inc., et al., No. 1:25-cv-04630 [2]. Group 3: Stock Performance and Market Reaction - Following a report from Jefferies on September 25, 2024, which indicated that Fortrea's anticipated cost savings were not as significant as previously thought, the stock price fell by 22.21 to 3.47, or over 25%, from 10.38 per share [6].
FTRE CLASS ACTION NOTICE: Fortrea Holdings Inc. Sued for Fraud after the Stock Plummeted 25%; Investors with Losses are Urged to Contact BFA Law (NASDAQ:FTRE)