#United States #Robbins Geller #San Diego #Class Action #Fortrea Holdings

Fortrea Holdings Inc. Class Action Lawsuit: A Call to Action for Investors

In a significant development for investors of Fortrea Holdings Inc. (NASDAQ: FTRE), Robbins Geller Rudman & Dowd LLP has announced an opportunity for those who acquired securities of Fortrea between July 3, 2023, and February 28, 2025, to step forward as lead plaintiffs in a class action lawsuit against the company. The lawsuit, titled Deslande v. Fortrea Holdings Inc., is filed in the Southern District of New York and involves allegations of major financial misconduct by Fortrea and its top executives under the Securities Exchange Act of 1934.

Background on Fortrea Holdings

Fortrea Holdings Inc. operates as a global clinical research organization (CRO), offering drug and medical device development solutions to pharma and biotechnology firms. Established after a spin-off from Labcorp Holdings Inc. in June 2023, Fortrea's inception as a standalone public entity was anticipated to herald growth in its long-term projects. However, this optimistic outlook now appears to be clouded by serious allegations outlined in the ongoing lawsuit.

Allegations Against Fortrea

According to the allegations made in the class action, Fortrea misled investors regarding:
1. Its projections related to the revenue from ongoing projects that were expected to bolster earnings in 2025;
2. The anticipated cost savings from exiting transition services agreements (TSAs) with Labcorp;
3. The viability of its post-spin business model; and
4. Its previously announced earnings before interest, taxes, depreciation, and amortization (EBITDA) targets for 2025, which were reportedly inflated.

The class action asserts that Fortrea's executives delivered misleading information, leading to unfavorable outcomes for investors. Key developments include a report from Jefferies on September 25, 2024, downgrading Fortrea's stock rating from 'buy' to 'hold', citing weaknesses within the company’s business model amid tightening biotechnology funding. This revelation led to a more than 12% drop in Fortrea’s stock price. Following this, on December 6, 2024, Baird Equity Research downgraded Fortrea to neutral after the company canceled two scheduled conferences, further compounding investor anxieties and causing the stock to fall by over 8%.

On March 3, 2025, Fortrea disclosed concerning financial results and admitted that projected revenues and EBITDA targets were not aligning with expectations. This betrayal of investor trust culminated in Fortrea’s stock plummeting by over 25% following these disclosures.

The Process for Interested Investors

The Private Securities Litigation Reform Act of 1995 allows any individual who purchased fortrea securities during the class period to apply for the role of lead plaintiff. The lead plaintiff is usually the one with the highest financial stake in the case, representing the interests of all class members. They also have the choice to select legal representation for the class action lawsuit.

Robbins Geller Rudman & Dowd LLP emphasizes that participation as a lead plaintiff does not affect an individual's ability to receive any potential future recovery as a result of the lawsuit. Interested investors are urged to submit their information through a designated link or contact the law firm directly for guidance and assistance.

Conclusion

The Fortrea Holdings class action lawsuit represents a crucial opportunity for investors who feel misled and suffered financial losses due to alleged corporate misconduct. With the deadline for appointing a lead plaintiff set for August 1, 2025, affected investors are encouraged to act promptly to ensure their voices are heard in this critical legal fight. For further details, potential plaintiffs can visit the Robbins Geller site or contact them directly.

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Contact Information:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez or Jennifer N. Caringal
655 W. Broadway, Suite 1900
San Diego, CA 92101
Tel: 800-449-4900
Email: [email protected]
Robbins Geller Website