#United States #New York #securities lawsuit #Faruqi & Faruqi #Fortrea Holdings

Faruqi & Faruqi Brings Attention to Fortrea Holdings Class Action Lawsuit

Faruqi & Faruqi, LLP, a prominent national securities law firm based in the U.S., has recently announced its ongoing investigation into potential claims against Fortrea Holdings Inc. This announcement serves as a crucial reminder for investors who purchased or acquired securities in Fortrea between July 3, 2023, and February 28, 2025. The law firm is emphasizing that the deadline for seeking the role of lead plaintiff in a pivotal federal securities class action against Fortrea is set for August 1, 2025.

This class action arises from serious allegations against Fortrea and its executives for violating federal securities laws. According to the complaint, the company made misleading statements regarding several financial projections and business strategies. Specifically, it is claimed that Fortrea overestimated the potential revenue from its Pre-Spin Projects, misrepresented the expected cost savings from exiting Transaction Services Agreements (TSAs), and consequently inflated its EBITDA targets for 2025. These alleged misrepresentations have raised significant concerns about the reliability of the company's public statements regarding its financial health and operational prospects.

Background of the Case

The situation escalated after pivotal reports from investment analysts highlighted notable weaknesses in Fortrea's business model. The Jefferies Report, published on September 25, 2024, downgraded Fortrea from a 'buy' to a 'hold,' citing doubts about the viability of the company's strategies in light of current market pressures affecting biotechnology funding. Following this, Fortrea's stock plummeted by over 12% in a single day, reflecting investor concerns.

Then, on December 6, 2024, a subsequent downgrade from Baird Equity Research further contributed to investor anxiety, leading to another decline in Fortrea’s stock price. This prompted severe scrutiny of the company's operations following its spin-off, culminating in a disheartening announcement on March 3, 2025, where Fortrea disclosed that its revenue and adjusted EBITDA targets were not meeting previous expectations. The company's stock price fell another 25% after this announcement, indicating a sharp decline in market confidence.

Importance of the Lead Plaintiff

The lead plaintiff in this case is a pivotal figure in the class action process, representing the interests of all investors who may seek recovery from the alleged corporate misconduct. It is essential for affected individuals to determine whether they want to take an active role in the litigation or to remain as passive class members. Participation as a lead plaintiff can provide individuals an opportunity to influence the litigation directly, although it does not alter the potential for recovery for other class members.

Faruqi & Faruqi encourages any individuals with insights, including whistleblowers or former employees, to reach out. The firm aims to provide avenues for investors to seek justice against potential wrongdoing while navigating the complex legal frameworks involved.

For further information regarding the ongoing investigation or to express interest in pursuing claims, investors are invited to visit Faruqi & Faruqi's website or contact partner Josh Wilson directly at 877-247-4292.

Conclusion

In conclusion, the developments surrounding Fortrea Holdings underscore the volatile nature of the securities market and the significant responsibilities companies hold in maintaining transparency with their shareholders. This impending class action lawsuit is a critical moment for investors as they grapple with the implications of these allegations and the potential for recovery. It remains essential for stakeholders to remain vigilant and informed as the deadline approaches and the case unfolds.