Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit due to alleged misleading statements and failure to disclose material adverse facts regarding its business performance and financial prospects during the class period from July 3, 2023, to February 28, 2025 [1][5]. Financial Performance - On March 3, 2025, Fortrea announced its financial results for the fourth quarter and full year 2024, reporting an adjusted EBITDA of $202.5 million, which was below the previously announced guidance of $220 million to $240 million [4]. - The company reported full year revenue of $2.696 billion, missing the guidance of $2.7 billion to $2.725 billion [4]. - For the full year 2025, Fortrea projected revenues between $2.450 billion and $2.550 billion and adjusted EBITDA in the range of $170 million to $200 million, indicating a decline from previous expectations [4]. Stock Price Movements - Following a downgrade by Jefferies on September 25, 2024, Fortrea's stock price fell by $2.73, or 12.3%, closing at $19.48 per share [2]. - On December 6, 2024, after Baird Equity Research expressed concerns about the company's performance, the stock price dropped by $1.90, or 8.1%, to close at $21.67 per share [3]. - After the disappointing financial results announcement on March 3, 2025, Fortrea shares fell by $3.47, or 25.1%, closing at $10.38 per share [4]. Allegations in the Lawsuit - The class action lawsuit alleges that Fortrea made materially false and misleading statements regarding its business model and financial projections, including overestimating revenue contributions from pre-spin projects and overstating cost savings from exiting transition services agreements [5]. - The lawsuit claims that the company's previously announced EBITDA targets for 2025 were inflated and that the viability of its post-spin business model was overstated [5].
Deadline Alert: Fortrea Holdings Inc. (FTRE) Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP About Securities Fraud Lawsuit