NEW YORK, NY - June 11, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Fortrea Holdings Inc. (“Fortrea” or the “Company”) (NASDAQ: FTRE) on behalf of investors that purchased or otherwise acquired Fortrea securities between July 3, 2023 and February 28, 2025 (the “Class Period”).
If you are an investor in Fortrea and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than August 1, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
On July 3, 2023, the start of the Class Period, Fortrea announced the completion of its spin-off from Labcorp Holdings Inc. (“Labcorp”) (the “Spin-Off”) and Fortrea stock began trading as a separate public company. At the time of the Spin-Off certain long-term projects in Fortrea’s portfolio remained ongoing (the “Pre-Spin Projects”).
On March 3, 2025, Fortrea announced financial results for its fourth quarter and full year 2024. The Company disclosed that “targeted revenue and adjusted EBITDA trajectories for 2025 [were] not in line with [its] prior expectations.” During an earnings call that same day, the Company revealed that 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 will “continue to negatively impact [Fortrea’s] financial performance during 2025.”
Following this news, the price of Fortrea stock fell $3.47 per share, or 25%, to close at $10.38 per share on March 3, 2025.
The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or 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 transition service agreements, or TSAs, with Labcorp; (iii) as a result, the Company’s previously announced EBITDA targets for 2025 were inflated; and (iv) the viability of the Company’s post-Spin-Off business model, as well as its business and/or financial prospects, were overstated.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.
https://www.kaplanfox.com/case/fortrea-holdings-inc/
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