Core Viewpoint - The Fortrea Holdings Inc. class action lawsuit alleges that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp, leading to significant stock price declines [1][3][4][5][6]. Company Overview - Fortrea Holdings Inc. is a global clinical research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices [2]. - The company was spun off from Labcorp Holdings Inc. in June 2023, becoming a standalone publicly traded entity [2]. Allegations of Misleading Statements - The lawsuit claims that Fortrea overestimated revenue contributions from ongoing projects and overstated cost savings from exiting transition services agreements (TSAs), inflating its EBITDA targets for 2025 [3]. - It is alleged that the viability of Fortrea's post-spin-off business model and financial prospects were overstated [3]. Stock Performance and Analyst Downgrades - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model, which led to 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, resulting in an 8% decline in stock price [5]. - On March 3, 2025, Fortrea announced that its revenue and EBITDA projections for 2025 were not aligned with prior expectations, causing a further stock price drop of over 25% [6]. Legal Process for Lead Plaintiff - Investors who purchased Fortrea securities during the class period can seek appointment as lead plaintiff in the lawsuit, representing the interests of the class [7][8].
FTRE INVESTOR ALERT: Fortrea Holdings Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit