Core Viewpoint - A class action lawsuit has been filed against Fortrea Holdings Inc. for allegedly misleading investors regarding its financial performance and projections following its spin-off from Labcorp Holdings Inc. [1][3][5] Company Overview - Fortrea was spun off from Labcorp in June 2023 as a standalone publicly traded company [3] - The company entered into transition services agreements with Labcorp for various administrative and operational support [3] Financial Performance - On March 3, 2025, Fortrea disclosed that its revenue and adjusted EBITDA targets for 2025 were not aligned with prior expectations, leading to a significant stock price drop of 25.05%, closing at $10.38 per share [4] - The company indicated that its Pre-Spin projects were underperforming, contributing less revenue and profitability than anticipated for 2025 [4] Allegations in the Lawsuit - The complaint alleges that Fortrea overestimated revenue contributions from Pre-Spin projects and overstated cost savings from exiting transition services agreements [5] - It is claimed that the company's previously announced EBITDA targets for 2025 were inflated, misrepresenting the viability of its post-Spin-Off business model [5]