NEW YORK, June 03, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Fortrea Holdings Inc. (“Fortrea” or the “Company”) (NASDAQ: FTRE) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Fortrea securities between July 3, 2023 and February 28, 2025, both dates inclusive (the “Class Period”). Investors have until August 1, 2025 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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.
If you purchased or otherwise acquired Fortrea shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
