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 [1][2]. Group 1: Company Background - Fortrea Holdings, Inc. is a global contract research organization (CRO) that provides biopharmaceutical product and medical device development solutions [1]. - The company was spun off from Labcorp Holdings Inc. in June 2023 and operates under several transition services agreements (TSAs) with Labcorp for various administrative and IT 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, leading to a significant stock price drop of $3.47 per share, or 25.05%, closing at $10.38 [3]. - The company indicated that its pre-spin projects were late in their life cycle, contributing less revenue and profitability than anticipated for 2025, and that post-spin work was insufficient to offset the pre-spin contract economics [3]. Group 3: Allegations and Misstatements - The complaint alleges that Fortrea overestimated the revenue contributions from its pre-spin projects and overstated potential cost savings from exiting the TSAs, inflating its previously announced EBITDA targets for 2025 [4]. - The viability of Fortrea's post-spin business model and its financial prospects were also claimed to be overstated during the class period [4].
Fortrea Holdings Inc. Stockholders Should Contact Robbins LLP for Information About the Securities Fraud Class Action Pending Against FTRE