Core Viewpoint - A lawsuit has been filed against Fortrea Holdings Inc. and its senior executives for potential violations of federal securities laws, alleging that the company overstated cost savings and revenue projections related to its transition services agreements with Labcorp [1][4]. Group 1: Lawsuit Details - The lawsuit 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, and investors have until August 1, 2025, to seek lead plaintiff status [2]. - The claims are based on Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, representing investors who purchased Fortrea securities [2]. Group 2: Company Background - Fortrea is a global contract research organization that was spun off from Labcorp Holdings Inc. in June 2023, becoming a standalone publicly traded company [3]. - As part of the spin-off, Fortrea entered into transition services agreements (TSAs) with Labcorp, agreeing to pay for certain transitional services over a specified period [3]. Group 3: Allegations and Stock Performance - Allegations state that Fortrea exaggerated the cost savings and margin improvements expected from exiting the TSAs, as well as the revenue from pre-spin projects [4]. - Following a report from Jefferies on September 25, 2024, which indicated that the anticipated cost savings were not as significant as claimed, Fortrea's stock fell by $2.73, or over 12%, from $22.21 to $19.48 per share [5]. - On March 3, 2025, Fortrea announced disappointing Q4 and full-year 2024 results, leading to a further decline in stock price by $3.47, or over 25%, from $13.85 to $10.38 per share [6].
FTRE SHAREHOLDER REPORT: Fortrea Holdings Inc. was Sued for Fraud – Investors with Losses are Notified to Contact BFA Law by August 1 Court Deadline (NASDAQ:FTRE)