Pomerantz Law Firm Files Class Action Suit Against Fortrea Holdings and Key Executives
On June 17, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against Fortrea Holdings, Inc. and several of its executives in the United States District Court for the Southern District of New York. The case is cataloged under the docket number 25-cv-04630, aiming to represent all individuals and entities who purchased or otherwise acquired Fortrea securities during the stated class period from July 3, 2023, to February 28, 2025. The lawsuit targets alleged infringements of federal securities laws, motivating potential claims for restitution linked to violations by the defendants, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, along with Rule 10b-5.
Investors who are concerned about their stake in Fortrea during this timeline should be aware of the critical deadline. Those wishing to serve as the lead plaintiff have until August 1, 2025, to make their interests known to the court. Interested individuals can acquire a copy of the complaint through the Pomerantz Law Firm's website and are encouraged to reach out to Danielle Peyton via email or telephone for further discussion regarding this contentious matter.
Fortrea Holdings is identified as a global contract research organization (CRO) that offers an extensive array of development solutions tailored for biopharmaceutical products and medical devices. The company prides itself on its capability to deliver comprehensive market strategies, leveraging its purportedly expansive expertise and global presence to serve its clientele effectively. The firm claims to combine a broad spectrum of project experience across numerous industries, thereby instilling confidence in their projected revenues.
Originally part of Labcorp Holdings Inc., Fortrea was spun off to become a distinct, publicly-held entity in June 2023, leading to enhancements aimed at revitalizing its operational focus and agility. Fortrea’s leadership posits that the newfound independence will allow for a sharper concentration on their primary mission of accelerating the delivery of impactful therapies to patients.
This spin-off has resulted in various transitional service agreements (TSAs) with Labcorp, through which Fortrea continues to procure crucial support services such as IT, finance, and administration. Such arrangements are intended to optimize initial operational structure while Fortrea develops its own capabilities for long-term sustainability and cost-efficiency.
Nevertheless, since its inception as an independent company, Fortrea’s adjustments in economic forecasts have raised critical red flags. For example, in early 2024, the firm publicly shared a goal to achieve adjusted EBITDA margins of approximately 13% for the year 2025. However, subsequent adjustments in August of the same year hinted at a more modest target range of 11% to 12%. Despite this revision, executives still anticipated notable improvements in overall EBITDA, signaling optimism amid pressure from fluctuating market conditions.
Critics of the company, including investment analysts, have recently cast doubts on Fortrea’s business model. A report released by the investment bank Jefferies indicated flaws in Fortrea's projections, particularly casting doubt on the sustainability of revenue streams stemming from their Pre-Spin Projects. This report triggered a significant decrease in stock price, showing a decline of over 12% shortly after its publication on September 25, 2024.
The magnitude of the fluctuations in Fortrea's stock price further intensified following a downgrade by Baird Equity Research in December 2024. Lack of transparency surrounding abrupt changes in communication strategies contributed to a pall of uncertainty, again resulting in stock depreciation for unsuspecting investors. Another substantial drop ensued after an earnings report on March 3, 2025, disclosed that projected revenue and adjusted EBITDA targets wouldn’t materialize as previously indicated.
This downturn prompted downgrading from Fitch Ratings, predicting even lower financial performance than Fortrea had projected in earlier quarters. The announced challenges, compounded by a lack of clarity around Fortrea’s operational strategy in light of earlier optimism, have fueled growing concerns among investors.
Pomerantz LLP, established over 85 years ago, has continuously developed a reputation as a leader in corporate, securities, and antitrust class litigation, championing the rights of victims affected by corporate malfeasance. Through this class action lawsuit, Pomerantz seeks to advance the interests of investors who feel misled and pursue recovery for their losses.
The litigation encapsulates significant issues surrounding transparency, accountability, and investors' rights within the corporate sphere, marking a pivotal moment for Fortrea as it navigates ongoing scrutiny amid a challenging economic landscape. Investors are urged to stay informed and consider their position as this case unfolds.
Investors who are concerned about their stake in Fortrea during this timeline should be aware of the critical deadline. Those wishing to serve as the lead plaintiff have until August 1, 2025, to make their interests known to the court. Interested individuals can acquire a copy of the complaint through the Pomerantz Law Firm's website and are encouraged to reach out to Danielle Peyton via email or telephone for further discussion regarding this contentious matter.
Fortrea Holdings is identified as a global contract research organization (CRO) that offers an extensive array of development solutions tailored for biopharmaceutical products and medical devices. The company prides itself on its capability to deliver comprehensive market strategies, leveraging its purportedly expansive expertise and global presence to serve its clientele effectively. The firm claims to combine a broad spectrum of project experience across numerous industries, thereby instilling confidence in their projected revenues.
Originally part of Labcorp Holdings Inc., Fortrea was spun off to become a distinct, publicly-held entity in June 2023, leading to enhancements aimed at revitalizing its operational focus and agility. Fortrea’s leadership posits that the newfound independence will allow for a sharper concentration on their primary mission of accelerating the delivery of impactful therapies to patients.
This spin-off has resulted in various transitional service agreements (TSAs) with Labcorp, through which Fortrea continues to procure crucial support services such as IT, finance, and administration. Such arrangements are intended to optimize initial operational structure while Fortrea develops its own capabilities for long-term sustainability and cost-efficiency.
Nevertheless, since its inception as an independent company, Fortrea’s adjustments in economic forecasts have raised critical red flags. For example, in early 2024, the firm publicly shared a goal to achieve adjusted EBITDA margins of approximately 13% for the year 2025. However, subsequent adjustments in August of the same year hinted at a more modest target range of 11% to 12%. Despite this revision, executives still anticipated notable improvements in overall EBITDA, signaling optimism amid pressure from fluctuating market conditions.
Critics of the company, including investment analysts, have recently cast doubts on Fortrea’s business model. A report released by the investment bank Jefferies indicated flaws in Fortrea's projections, particularly casting doubt on the sustainability of revenue streams stemming from their Pre-Spin Projects. This report triggered a significant decrease in stock price, showing a decline of over 12% shortly after its publication on September 25, 2024.
The magnitude of the fluctuations in Fortrea's stock price further intensified following a downgrade by Baird Equity Research in December 2024. Lack of transparency surrounding abrupt changes in communication strategies contributed to a pall of uncertainty, again resulting in stock depreciation for unsuspecting investors. Another substantial drop ensued after an earnings report on March 3, 2025, disclosed that projected revenue and adjusted EBITDA targets wouldn’t materialize as previously indicated.
This downturn prompted downgrading from Fitch Ratings, predicting even lower financial performance than Fortrea had projected in earlier quarters. The announced challenges, compounded by a lack of clarity around Fortrea’s operational strategy in light of earlier optimism, have fueled growing concerns among investors.
Pomerantz LLP, established over 85 years ago, has continuously developed a reputation as a leader in corporate, securities, and antitrust class litigation, championing the rights of victims affected by corporate malfeasance. Through this class action lawsuit, Pomerantz seeks to advance the interests of investors who feel misled and pursue recovery for their losses.
The litigation encapsulates significant issues surrounding transparency, accountability, and investors' rights within the corporate sphere, marking a pivotal moment for Fortrea as it navigates ongoing scrutiny amid a challenging economic landscape. Investors are urged to stay informed and consider their position as this case unfolds.
Topics Financial Services & Investing）
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