Investigation Launched by Faruqi & Faruqi on Fortrea Holdings Shareholder Claims

Overview of the Investigation into Fortrea Holdings

Faruqi & Faruqi, LLP, a well-respected name in securities law, has recently commenced an investigation into potential claims concerning Fortrea Holdings Inc. This investigation is significant for both current and past investors, as the firm seeks to assist those who may have faced financial losses exceeding $50,000 while holding shares of Fortrea between July 3, 2023, and February 28, 2025.

Background of Fortrea Holdings

Fortrea Holdings Inc. (NASDAQ: FTRE) has been under scrutiny following troubling financial disclosures and their effects on the stock price. Shareholders have been alerted to the importance of understanding their rights in light of recent developments. In particular, there are rising concerns about the accuracy of the information disclosed by the Company and its executives regarding projected earnings and cost savings.

Allegations Against Fortrea

The complaints brought forward allege that Fortrea made various false or misleading statements regarding the projected revenue from its Pre-Spin Projects. Moreover, an emphasis was placed on overstating potential cost savings associated with exiting its Transfer Service Agreements (TSA). As a result, investors were reportedly misled about the Company's financial health and potential profitability.

In September 2024, Jefferies, an investment bank, issued a report that downgraded Fortrea from a buy to hold rating. They highlighted perceived vulnerabilities in Fortrea's business model as a Clinical Research Organization (CRO), especially amidst growing pressure on funding in the biotechnology sector. The report specifically indicated that the cost savings anticipated by exiting the TSAs might not materialize as expected. Shortly after this report, Fortrea's stock saw a significant decline, dropping $2.73 per share, or about 12.29%.

The following events further exacerbated investor concerns when Baird Equity Research downgraded Fortrea to neutral from outperform in December 2024, following the Company's unexpected cancellation of two major conferences. Investors reacted negatively, resulting in an additional decrease in the stock price by $1.90 per share.

Finally, in March 2025, Fortrea released their fiscal results, indicating that projected revenue and adjusted EBITDA trends for 2025 were misaligned with earlier forecasts. This transparency about their Pre-Spin projects being “late” with less revenue and profitability than initially expected further influenced a drastic drop in stock value of over 25% on the date of the announcement.

The Role of Lead Plaintiff

In a federal securities class action, the lead plaintiff is a crucial figure as they represent the interests of the class—those who have suffered financial losses. Should any investor wish to become the lead plaintiff, they may contact the court with their representation. However, it is important to note that electing to take on this role does not affect the individual's potential recovery from the outcomes of the case.

Call to Action for Investors

Faruqi & Faruqi encourages anyone involved with Fortrea Holdings—and particularly those who believe they may have information pertinent to the investigation—to reach out. Whistleblowers, former employees, and shareholders are especially welcomed to contribute insights that could assist the investigation. Legal counsel can be sought via their direct phone lines, allowing for confidential discussions regarding individual cases.

In summary, the serious allegations against Fortrea Holdings might lead to important legal actions. Investors should be vigilant and informed as they navigate the complexities of potential recovery options stemming from alleged corporate misconduct.

For more information about the ongoing investigation or to discuss your rights as an investor, it's advised to contact Faruqi & Faruqi, LLP as soon as possible.