Investigation Launched into Fortrea Holdings by Kahn Swick & Foti Law Firm

Investigation Launched into Fortrea Holdings, Inc. by Kahn Swick & Foti

In a recent development, Kahn Swick & Foti, LLC (KSF), a law firm led by former Louisiana Attorney General Charles C. Foti, Jr., has announced the initiation of an investigation into Fortrea Holdings, Inc. (NASDAQ: FTRE). This inquiry comes in light of concerning financial disclosures and legal challenges faced by the company since its separation from Labcorp Holdings in June 2023.

In the spin-off from Labcorp, Fortrea became a standalone entity, expected to operate with a viable business model. However, financial reports released on March 3, 2025, disclosed disappointing fourth-quarter and full-year results for 2024, revealing that the company significantly missed its revenue and adjusted EBITDA targets. Crucially, the company stated that its early projects were underperforming, indicating that revenue growth and profitability were below expectations - a stark contrast to what was anticipated at the time of the spin-off. Furthermore, the adverse effects on the company's contract economics were evident, with post-spin revenues not compensating for pre-spin deficits.

In addition to financial concerns, Fortrea Holdings and some of its executives are currently embroiled in a securities class action lawsuit. This lawsuit accuses the company and its management of failing to disclose critical information to investors, thus violating federal securities laws. This legal situation has led to mounting scrutiny over the company's actions and decisions.

Given the severity of these allegations, Kahn Swick & Foti's investigation will focus on assessing whether Fortrea's officers and directors have breached their fiduciary duties toward shareholders, as well as any potential violations of state or federal laws that may be at play. The outcome of this examination could have significant implications for the leadership of Fortrea Holdings as well as its stock value.

How Investors Can Get Involved

KSF urges anyone with information relevant to the investigation or shareholders who have held Fortrea stock for an extended period to come forward. Individuals can reach KSF at their toll-free line or via email, where initial consultations will be offered without any obligation or cost.

The investigation aims to ensure that shareholders' rights are protected and that any potential wrongdoing by the Fortrea leadership is thoroughly examined. Stakeholders and investors are encouraged to stay informed about the unfolding situation as Kahn Swick & Foti continues its inquiry into the matter.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti is recognized as one of the premier boutique law firms specializing in securities litigation across the United States. With a history of recovering investment losses for clients due to corporate fraud, KSF remains dedicated to advocating for the rights of both institutional and retail investors. The firm operates across several states, including New York, Louisiana, and California, thereby extending its reach to assist clients effectively.

For additional details on KSF and its ongoing investigations, shareholders and interested parties may visit their official website or contact them directly for support in this critical time. Keeping abreast of developments could provide investors with vital insights into the evolving situation with Fortrea Holdings.