A securities class action has been filed in the USDC — S.D.N.Y. against Fortrea Holdings, Inc. (FTRE) (“Fortrea” or the “Company”) on behalf of all persons and entities that purchased or otherwise acquired Fortrea securities between July 03, 2023, and February 28, 2025, both dates inclusive (the “Class Period”).

Fortrea is a global CRO that provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotechnology and medical device customers. The Company claims to have the “scale and expertise to advise, design and deliver [its] customers’ programs, projects and programs globally” and “[w]ith a portfolio of projects that extend over multiple years,” its longer-term contract durations purportedly “give [Fortrea] confidence and visibility into [its] future revenues.”

Fortrea was formerly the clinical development and commercialization services business of Labcorp, a life sciences and healthcare company. In June 2023, Labcorp spun-off Fortrea as a standalone, publicly traded company.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

(1) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company’s 2025 earnings;

(2) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs;

(3) as a result, the Company’s previously announced EBITDA targets for 2025 were inflated;

(4) accordingly, the viability of the Company’s post-Spin-Off business model, as well as its business and/or financial prospects, were overstated; and

(5) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.

Fortrea’s stock price fell $3.47 per share, or 25.05%, to close at $10.38 per share on March 3, 2025.

If you purchased Fortrea securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

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