Core Viewpoint - A class action has been filed against Fortrea Holdings, Inc. for allegedly misleading investors regarding the progress of its pre-spin projects and financial expectations following its spin-off from Labcorp [1][2][4]. Group 1: Company Background - Fortrea Holdings, Inc. is a global contract research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices [1]. - The company was spun off from Labcorp Holdings Inc. in June 2023 and entered into transition services agreements (TSAs) with Labcorp for various support services [2]. Group 2: Financial Performance - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not meeting prior expectations, indicating that pre-spin projects were underperforming [3]. - The company reported that its pre-spin projects were "late in their life cycle" and had lower revenue and profitability than anticipated for 2025, leading to a significant stock price drop of 25.05% to $10.38 per share [3]. Group 3: Allegations and Misstatements - The complaint alleges that Fortrea overestimated the revenue contributions from pre-spin projects and overstated potential cost savings from exiting TSAs, inflating its EBITDA targets for 2025 [4]. - It is claimed that the viability of Fortrea's post-spin business model and financial prospects were also overstated during the class period [4].
FTRE Shareholders with Large Losses are Encouraged to Seek Counsel - Contact Robbins LLP for Information About Leading the Class Action Against Fortrea Holdings, Inc.