SAN DIEGO, June 3, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired Fortrea Holdings, Inc. (NASDAQ: FTRE) securities between July 3, 2023 and February 28, 2025. Fortrea is a global contract research organization ("CRO") that provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotechnology, and medical device customers.

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.

The Allegations: Robbins LLP is Investigating Allegations that Fortrea Holdings, Inc. (FTRE) Misled Investors Regarding the Progress of its Pre-Spin Projects

The complaint alleges that Fortrea was formerly the clinical development and commercialization services business of Labcorp Holdings Inc., a life sciences and healthcare company.  In June 2023, Labcorp spun off Fortrea as a standalone, publicly traded company. In connection with the Spin-Off, Labcorp and Fortrea entered into several transition services agreements (the "TSAs"), pursuant to which Fortrea pays Labcorp to provide certain transitional services for a set period, including information technology applications, network and security support and hosting, as well as finance, human resources, marketing, and other administrative support. 

On March 3, 2025, Fortrea announced its fourth quarter and full year 2024 financial results, disclosing that its "targeted revenue and adjusted EBITDA trajectories for 2025 [were] not in line with [its] prior expectations."  Specifically, in an earnings call held that same day, Fortrea revealed that the Company's Pre-Spin projects are "late in their life cycle [and] have less revenue and less profitability than expected for 2025" and that "post-spin work is not coming on fast enough to offset the pre-spin contract economics."  The Company also said this "older versus newer mix issue will continue to negatively impact [Fortrea's] financial performance during 2025."  On this news, Fortrea's stock price fell $3.47 per share, or 25.05%, to close at $10.38 per share on March 3, 2025.

According to the complaint, during the class period, defendants failed to disclose that: (i) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings; (ii) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs; (iii) as a result, the Company's previously announced EBITDA targets for 2025 were inflated; and (iv) accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated.

What Now: You may be eligible to participate in the class action against Fortrea Holdings, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motion with the court by August 1, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses. 

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. 

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SOURCE Robbins LLP