#USA #New York #Securities Law #Faruqi & Faruqi #Fortrea Holdings

Overview

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced an important reminder for investors involved with Fortrea Holdings Inc. The deadline for lead plaintiff applications in a federal securities class action lawsuit is quickly approaching, set to close on August 1, 2025. Investors who suffered losses exceeding $50,000 between July 3, 2023, and February 28, 2025, are encouraged to come forward and discuss their legal options.

Background Information

The lawsuit arises from allegations that Fortrea and its executives violated federal securities laws. Specific claims indicate that misleading information was disseminated, exaggerating both potential revenues and cost savings associated with the company’s operations. Allegations include the claim that Fortrea overstated the revenue its Pre-Spin Projects would contribute to 2025 earnings, and the anticipated cost reductions from exiting Transitional Service Agreements (TSAs) were also inflated.

Recent Developments

In September 2024, a critical report released by Jefferies downgraded Fortrea from a 'buy' to a 'hold' recommendation. This report highlighted perceived weaknesses within the company's business model as a Contract Research Organization (CRO) amid growing pressures on biotechnology funding. On this news, Fortrea's stock fell significantly, indicating investor concern regarding its financial forecasts.

Furthermore, on December 6, 2024, market analysis from Baird Equity Research further compounded investor concerns, leading to another downgrade of Fortrea. The abrupt cancellation of two scheduled conferences raised alarms about the company’s transparency and operational stability. As a consequence, Fortrea’s stock saw another notable decline in value following these developments.

In March 2025, Fortrea released its financial results for the fourth quarter, confirming that its revenue targets and adjusted EBITDA projections for 2025 were no longer aligned with previous expectations. The company acknowledged that its Pre-Spin projects were lagging significantly, yielding lower revenue and profitability than initially predicted. Following this announcement, Fortrea's shares plummeted 25.05%, signaling a substantial loss of investor confidence.

The Class Action Process

With a class action lawsuit like this, the role of the lead plaintiff is crucial. This individual is typically the investor who suffered the most significant financial loss and will guide the litigation on behalf of the entire group of claimants. While participation as a lead plaintiff is not obligatory, the opportunity to recover from the damages incurred remains available to all affected investors.

Faruqi & Faruqi is actively encouraging any individuals possessing information regarding Fortrea's activities—such as whistleblowers, former employees, and concerned shareholders—to step forward. Their insights could greatly assist in shaping the litigation process.

How to Get Involved

Investors who meet the criteria outlined should consider reaching out to Faruqi & Faruqi to discuss potential participation in the class action. Direct communication can be established through their dedicated lines or through their website, where additional information regarding the situation can be found.

• - Contact Information: Investors wishing to learn more about filing for lead plaintiff or seeking guidance on the ongoing lawsuit should contact partner Josh Wilson directly at 877-247-4292 or visit www.faruqilaw.com/FTRE.

In summary, the window for investors to act is closing, and those who have suffered losses need to take proactive steps to protect their rights and interests. As the lawsuit develops, updates will continue to be published to keep current and potential plaintiffs informed.