Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp Holdings Inc. [1][3] Company Overview - Fortrea is a global clinical research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices [2]. - The company was spun off from Labcorp in June 2023, with ongoing long-term projects at the time of the spin-off [2]. Allegations of the Lawsuit - The lawsuit claims that Fortrea overestimated revenue contributions from pre-spin projects, overstated cost savings from exiting transition services agreements (TSAs), and inflated its EBITDA targets for 2025 [3]. - Specific allegations include: - Overestimation of revenue from pre-spin projects [3]. - Overstatement of cost savings from exiting TSAs [3]. - Inflated EBITDA targets for 2025 [3]. - Overstated viability of Fortrea's post-spin business model [3]. Impact of Analyst Reports - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model and a lack of material cost savings from exiting TSAs, leading to a stock price drop of over 12% [4]. - On December 6, 2024, Baird Equity Research downgraded Fortrea to neutral, resulting in an 8% decline in stock price after the company canceled two scheduled conferences [5]. Financial Performance Disclosure - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not aligned with prior expectations, revealing that pre-spin projects were underperforming and negatively impacting financial performance [6]. - Following this announcement, Fortrea's stock price fell by more than 25% [6].

Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp Holdings Inc. [1][3] Company Overview - Fortrea Holdings Inc. is a global clinical research organization (CRO) that provides biopharmaceutical product and medical device development solutions to various customers [2]. - The company was spun off from Labcorp Holdings Inc. in June 2023, with ongoing long-term projects at the time of the spin-off [2]. Allegations of the Lawsuit - The lawsuit alleges that Fortrea overestimated revenue contributions from pre-spin projects, overstated cost savings from exiting transition services agreements (TSAs), and inflated its EBITDA targets for 2025 [3]. - Specific claims include that Fortrea's business model viability and financial prospects were overstated, leading to significant stock price declines following negative reports from analysts [3][4][5]. Stock Performance and Analyst Reports - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model, resulting in a stock price drop of over 12% [4]. - Following the cancellation of two scheduled conferences, Baird Equity Research downgraded Fortrea to neutral from outperform on December 6, 2024, leading to an additional stock price decline of over 8% [5]. - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not aligned with prior expectations, causing a stock price drop of more than 25% [6]. Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows investors who purchased Fortrea securities during the class period to seek appointment as lead plaintiff in the lawsuit [7]. - The lead plaintiff represents the interests of all class members and can select a law firm for litigation [8].

Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp Holdings Inc. [1][3] Company Overview - Fortrea is a global clinical research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices [2]. - The company was spun off from Labcorp in June 2023, with ongoing long-term projects at the time of the spin-off [2]. Allegations of the Lawsuit - The lawsuit claims that Fortrea overestimated revenue contributions from pre-spin projects and overstated cost savings from exiting transition services agreements (TSAs) [3]. - It is alleged that Fortrea's EBITDA targets for 2025 were inflated, leading to an overstatement of the company's business viability and financial prospects [3]. Impact of Analyst Reports - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model and a lack of material cost savings from exiting TSAs, resulting in a stock price drop of over 12% [4]. - Following the cancellation of two scheduled conferences, Baird Equity Research downgraded Fortrea to neutral from outperform on December 6, 2024, leading to an 8% decline in stock price [5]. Financial Performance Disclosure - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not aligned with prior expectations, revealing that pre-spin projects were underperforming [6]. - The announcement led to a significant stock price drop of over 25% [6].

Core Viewpoint - The Fortrea Holdings Inc. class action lawsuit alleges that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp, leading to significant stock price declines [1][3][4][5][6]. Company Overview - Fortrea Holdings Inc. is a global clinical research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices [2]. - The company was spun off from Labcorp Holdings Inc. in June 2023, becoming a standalone publicly traded entity [2]. Allegations of Misleading Statements - The lawsuit claims that Fortrea overestimated revenue contributions from ongoing projects and overstated cost savings from exiting transition services agreements (TSAs), inflating its EBITDA targets for 2025 [3]. - It is alleged that the viability of Fortrea's post-spin-off business model and financial prospects were overstated [3]. Stock Performance and Analyst Downgrades - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model, which led to a stock price drop of over 12% [4]. - Following the cancellation of two scheduled conferences, Baird Equity Research downgraded Fortrea to neutral from outperform on December 6, 2024, resulting in an 8% decline in stock price [5]. - On March 3, 2025, Fortrea announced that its revenue and EBITDA projections for 2025 were not aligned with prior expectations, causing a further stock price drop of over 25% [6]. Legal Process for Lead Plaintiff - Investors who purchased Fortrea securities during the class period can seek appointment as lead plaintiff in the lawsuit, representing the interests of the class [7][8].

Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding its financial performance and business model following its spin-off from Labcorp Holdings Inc. [1][3] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Deslande v. Fortrea Holdings Inc., and it includes purchasers of Fortrea securities from July 3, 2023, to February 28, 2025, with a deadline of August 1, 2025, to seek lead plaintiff status [1][2] - The lawsuit alleges that Fortrea overestimated revenue contributions from ongoing projects and overstated cost savings from exiting transition services agreements (TSAs), leading to inflated EBITDA targets for 2025 [3][4] Group 2: Financial Performance and Analyst Reports - On September 25, 2024, Jefferies downgraded Fortrea from buy to hold, citing weaknesses in its business model and stating that expected cost savings from exiting TSAs were not as significant as anticipated, resulting in a stock price drop of over 12% [4] - Following the cancellation of two scheduled conferences, Baird Equity Research downgraded Fortrea to neutral from outperform on December 6, 2024, leading to an additional stock price decline of more than 8% [5] - On March 3, 2025, Fortrea announced that its revenue and adjusted EBITDA projections for 2025 were not aligned with prior expectations, revealing that pre-spin projects were underperforming, which caused the stock price to fall over 25% [6] Group 3: Company Background - Fortrea is a global clinical research organization (CRO) that provides development solutions for biopharmaceutical products and medical devices, having been spun off from Labcorp in June 2023 [2][3]

Explore the exciting world of Medpace Holdings (MEDP 1.11%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!*Stock prices used were the prices of April 23, 2025. The video was published on May 27, 2025. ...

Financial Data and Key Metrics Changes - For the first quarter of 2025, revenues were $651.3 million, a decline of 1.6% year-over-year, primarily due to varying late-stage clinical service fee wins and a slowing backlog burn rate [32][33] - Adjusted EBITDA for the quarter was $30.3 million, compared to $27.1 million in the prior year period, indicating year-over-year growth [32][37] - The net loss for the first quarter was $562.9 million, significantly higher than the net loss of $79.8 million in the prior year, mainly due to a goodwill impairment charge of $488.8 million [38][39] - The book-to-bill ratio for the quarter was 1.02 times, with a trailing twelve-month ratio of 1.14 times [6][37] - The backlog grew by 4% over the past twelve months, totaling over $7.7 billion [37] Business Line Data and Key Metrics Changes - The clinical pharmacology business saw increases in service fee and pass-through revenues, contributing positively to overall performance [33][37] - The company is experiencing a shift towards biotech, with a solid pipeline of opportunities, although some biotech customers are being more cautious due to funding concerns [10][11][46] - The full-service outsourcing business has shown success, with notable achievements such as completing recruitment for a renal product ahead of schedule and accelerating timelines for cancer studies [19][45] Market Data and Key Metrics Changes - The market environment remains competitive but stable, with larger customers maintaining consistent opportunities and spending [10][46] - There is a noted increase in caution among biotech customers regarding funding and regulatory confirmations, which is impacting decision-making timelines [11][90] - The pricing environment is competitive, but there is no notable lack of discipline around pricing [76] Company Strategy and Development Direction - The company is focused on improving customer relationships and enhancing its commercial strategy, including the incorporation of AI to increase efficiency [15][26] - A transformation year is anticipated for 2025, with goals to improve gross margins and reduce SG&A costs [16][48] - The company aims to achieve a 1.2 times book-to-bill ratio over time, although current economic uncertainties make it difficult to predict new business wins [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate challenges, emphasizing the importance of innovation in drug development [12][51] - The company is targeting operating cash flow to be positive for the remainder of 2025, driven by improving DSO and adjusted EBITDA [41][86] - There is an expectation for SG&A improvements to be more pronounced in the latter half of the year as efficiency programs take effect [80] Other Important Information - The company has reduced its permanent headcount by over 8% in the past year to align costs with revenue [34][48] - A significant goodwill impairment charge was recorded due to uncertain macroeconomic conditions and a decline in share price [38] - The company has initiated transformation programs to reduce personnel costs and optimize operational expenditures [48][50] Q&A Session Summary Question: Revenue expectations and cadence - The first quarter revenue was better than expected, but guidance suggests revenue may be flat to down for the rest of the year, with margin expansion expected to be gradual [58][64] Question: Clinical pharmacology RFP volume and win rates - The clinical pharmacology business remains strong, with a return of the pipeline, and efforts are being made to convert pass-through work into revenue [67][68] Question: Bookings backdrop and competition - The biotech pipeline is growing, but there is increased caution regarding funding and decision-making timelines, with competition remaining disciplined in pricing [70][76] Question: SG&A expectations - Marginal improvement in SG&A is expected in the second quarter, with more significant improvements anticipated in the latter half of the year [78][80] Question: Cash flow improvement and DSO expectations - DSOs are expected to improve over the year, targeting low to mid-40s by year-end, with cash flow expected to be positive in Q3 and Q4 [85][86] Question: Biotech funding concerns - There is caution among biotech customers regarding funding, leading to slower decision-making, but the pipeline remains strong [90][92]

Q1 2025 Earnings Presentation FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Forward-Looking Statements Disclosure. Certain information in this presentation contains "forward-looking" statements. You should not place undue reliance on these statements. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as "believe", "expect", "approximately", "an ...

ICON plc Q1 2025 Results Period Ended March 31, 2025 Forward Looking Statement Statements included in this presentation which are not historical facts are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (the "PSLRA"). Forward-looking statements include statements regarding our financial guidance and outlook, and may be identified by the use of future tense or other forward-looking words s ...

Core Viewpoint - ICON PLC is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934 due to misleading statements and undisclosed material losses impacting its business operations [1][3]. Company Overview - ICON PLC is identified as a clinical research organization (CRO) [2][3]. Allegations in the Lawsuit - The lawsuit claims that ICON suffered a material loss of business due to customer cost reduction measures and funding limitations affecting its client base [3]. - It is alleged that ICON's Functional Service Provision (FSP) and hybrid model offerings were inadequate to mitigate the effects of a significant market downturn [3]. - The requests for proposals from biotechnology customers were reportedly used as price discovery tools rather than indicative of actual client demand [3]. - Customers of ICON are said to have canceled contracts, limited engagements, delayed clinical trial work, and failed to enter into new contracts at historical rates [3]. - The two largest customers of ICON were diversifying their CRO providers away from ICON [3]. - As a result of these issues, ICON's reported net new business awards and book-to-bill metrics misrepresented actual client demand [3]. - Consequently, ICON was tracking significantly below the 2024 revenue and EPS guidance issued during the Class Period, which lacked a reasonable factual basis [3]. Financial Performance - On October 23, 2024, ICON reported quarterly revenues of $2.03 billion, missing consensus estimates of $2.13 billion by over $100 million [4]. - The quarterly net new business wins declined to $2.3 billion from $2.6 billion in the prior quarter, and the book-to-bill ratio fell to 1.15 from 1.22 [4]. - The CEO indicated that two large pharmaceutical customers had curtailed upcoming FSP trial work due to ongoing cost containment measures, which would negatively impact financial performance [4]. - Following this news, the price of ICON ordinary shares dropped by more than 20% over two trading sessions [4].