Investors who lost money with shares of Fortrea Holdings Inc. (NASDAQ: FTRE) should contact the Shareholders Foundation in connection with Lawsuit

An investor, who purchased shares of Fortrea Holdings Inc. (NASDAQ: FTRE), filed a lawsuit over alleged violations of Federal Securities Laws by Fortrea Holdings Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Fortrea Holdings Inc. (NASDAQ: FTRE) have certain options and for certain investors are short and strict deadlines running. Deadline: August 1, 2025. NASDAQ: FTRE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Durham, NC based Fortrea Holdings Inc., a contract research organization("CRO"), provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotechnology, and medical device customers worldwide. The Company claims to have the "scale and expertise to advise, design and deliver [its] customers' programs, projects and programs globally" and, "[w]ith a portfolio of projects that extend over multiple years," its longer-term contract durations purportedly "give [Fortrea] confidence and visibility into [its] future revenues."

Fortrea Holdings Inc was formerly the clinical development and commercialization services business of Labcorp Holdings Inc. ("Labcorp"), a life sciences and healthcare company.

In June 2023, Labcorp spun off Fortrea Holdings Inc as a standalone, publicly traded company (the "Spin-Off" or the "Spin"). At the time of the Spin-Off, certain of the long-term projects in Fortrea's portfolio remained ongoing (the "Pre-Spin Projects").

In describing the purported benefits of the Spin-Off, Fortrea Holdings Inc has stated that "Fortrea has been established to bring sharpened focus to our purpose, which is partnering with customers to bring life-changing therapies to patients faster" and, "as an independent company with increased operational agility and financial flexibility, [it is] the ideal size to deliver on this purpose. With [its] global scale, access to clinical data-driven insights, site relationships and decades of experience, Fortrea is able to bring customers tailored solutions as a trusted partner."

In connection with the Spin-Off, Labcorp and Fortrea Holdings Inc 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 ("IT") applications, network and security support and hosting, as well as finance, human resources, marketing, and other administrative support. However, since completing the Spin-Off, Fortrea has consistently represented that it has "built detailed TSA exit plans" designed to save costs and improve margins by investing in developing its own infrastructure.

Fortrea Holdings Inc. (NASDAQ: FTRE) reported that its annual Total Revenue declined from over $2.84 billion in 2023 to over $2.69 billion in 2024, and that its Net Loss increased from $25.20 million in 2023 to $328.5 million in 2024.

In March 2024, Fortrea Holdings Inc announced that it was targeting 2025 adjusted EBITDA margins-a measure of a company's operating profit as a percentage of its revenue-on a full-year basis of approximately 13%. In August 2024, the Company slightly lowered its targeted adjusted 2025 EBITDA margins to the "11% to 12% range," but touted that this would still "represent a roughly 300 basis points improvement at the midpoint versus 2024, and broadly a 30% to 40% increase in adjusted EBITDA dollars delivered."

On September 25, 2024, the investment bank Jefferies published a report (the "Jefferies Report") downgrading Fortrea Holdings Inc from buy to hold. Among other things, the Jefferies Report cited perceived weaknesses in the Company's business model as a CRO amid pressure on biotechnology funding and suggested that the cost savings Fortrea expects to achieve by exiting the TSAs are "[n]ot as [m]aterial as [o]ne [m]ight [t]hink," stating that "IT infrastructure costs to exit the TSAs are already non-GAAPed out of adjusted EBITDA. Thus, once TSAs are exited, [Fortrea] will just be replacing TSA costs with internal operating costs."

Then, on December 6, 2024, market analyst Baird Equity Research ("Baird") downgraded Fortrea Holdings Inc to neutral from outperform after the Company abruptly cancelled two scheduled conferences. A Baird analyst said that "[g]iven our ongoing concerns around the sector, [Fortrea's] choppy history post spin, and lack of clarity on the abrupt communications course change, we cannot recommend an actionable investment (buy or sell)[.]"

Finally, on March 3, 2025, Fortrea Holdings Inc 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 March 17, 2025, the credit rating agency Fitch Ratings downgraded Fortrea Holdings Inc and projected the Company's 2025 EBITDA margin to be in the range of "7.0% to 8.0% in 2025," a significant decline from the Company's previously targeted 2025 EBITDA margin figures of 13%, as projected March 2024, and 11%-12%, as projected in August 2024.

Shares of Fortrea Holdings Inc. (NASDAQ: FTRE) declined from $28.28 per share on July 17, 2024, to as low as $3.97 per share on June 03, 2025.

The plaintiff claims that between July 3, 2023 and February 28, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings, that Fortrea overstated the cost savings it would likely achieve by exiting the TSAs, that as a result, the Company's previously announced EBITDA targets for 2025 were inflated, that accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Fortrea Holdings Inc. (NASDAQ: FTRE) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.