#United States #San Diego #Class Action #Securities Fraud #Fortrea Holdings

Introduction

In a significant development for investors of Fortrea Holdings Inc., the law firm Robbins Geller Rudman & Dowd LLP has announced an important opportunity for those who suffered substantial losses. The firm is calling upon purchasers of Fortrea's securities between July 3, 2023 and February 28, 2025, who are interested in representing the class action lawsuit against the company, to step forward before the deadline on August 1, 2025. This legal action, labeled as Deslande v. Fortrea Holdings Inc., addresses alleged violations of the Securities Exchange Act of 1934 by Fortrea and some of its top executives.

Background of Fortrea Holdings Inc.

Fortrea Holdings, a global clinical research organization (CRO), specializes in providing biopharmaceutical product and medical device development solutions. The company became publicly traded following a spin-off from Labcorp Holdings Inc. in June 2023. However, this transition seems to have set the stage for unforeseen difficulties, which have now become the focal point of the class action suit.

Allegations Against Fortrea

The allegations in the class action lawsuit are serious. It is claimed that during the class period, Fortrea made misleading statements regarding the revenue expectations from its ongoing projects and misrepresented the cost savings associated with their operational transitions. Key claims include:

• - Overestimation of Revenue: Fortrea allegedly overestimated the revenue contribution expected from certain ongoing projects, misguiding investors about its financial health.
• - Inflated EBITDA Targets: The EBITDA targets set for 2025 were reportedly inflated due to a lack of realistic assessments of the company's post-spin revenues.
• - Inadequate Cost Savings: Fortrea is accused of overstating the savings anticipated from its exit from existing transition service agreements.

Impact of Reports and Market Reactions

Significant market analyses raised alarms about Fortrea's profitability and the practicalities of its business model soon after the spin-off. On September 25, 2024, Jefferies downgraded the company's stock, indicating that the anticipated financial recovery might not materialize as expected, leading to an almost immediate stock price drop of over 12%. This pattern continued as further downgrades were announced, leading to a cumulative stock price decline exceeding 25% by early March 2025.

The Class Action Process

Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Fortrea securities during the defined class period may apply to become the lead plaintiff in this class action lawsuit. The lead plaintiff plays a crucial role in guiding the lawsuit and representing the interests of the entire class.

Conclusion

Investors who believe they are eligible to lead this significant class action lawsuit against Fortrea Holdings Inc. are urged to act quickly. The deadline for engagement is fast approaching, set for August 1, 2025. Any affected shareholder can contact Robbins Geller's attorneys for further details on how to proceed. For those dealing with losses during this tumultuous period in Fortrea's corporate history, this class action may present a pathway to seek redress for their financial grievances.

Investors are encouraged to visit Robbins Geller's information page for more guidance and contact details.