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] Company Overview - Fortrea 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 in June 2023, with ongoing long-term projects at the time of the spin-off [2]. Allegations of the Lawsuit - The lawsuit claims that Fortrea overestimated revenue contributions from pre-spin projects and overstated cost savings from exiting transition services agreements (TSAs) [3]. - It is alleged that Fortrea's EBITDA targets for 2025 were inflated, leading to an overstatement of the company's business viability and financial prospects [3]. Impact of Analyst Reports - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model and a lack of material cost savings from exiting TSAs, 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 8% decline in stock price [5]. Financial Performance Disclosure - 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 [6]. - The announcement led to a significant stock price drop of over 25% [6].
INVESTOR DEADLINE: Robbins Geller Rudman & Dowd LLP Announces that Fortrea Holdings Inc. (FTRE) Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit