NEW YORK, June 14, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Fortrea Holdings Inc. (NASDAQ: FTRE) and certain of the Company’s senior executives for potential violations of the federal securities laws.
If you invested in Fortrea you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/fortrea-holdings-inc-class-action-lawsuit.
Investors have until August 1, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Fortrea securities. The case is pending in the U.S. District Court for the Southern District of New York and is captioned Deslande v. Fortrea Holdings Inc., et al., No. 1:25-cv-04630.
Why was Fortrea Sued for Securities Fraud?
Fortrea is a global contract research organization that provides biopharmaceutical product and medical device development solutions. In June 2023, Fortrea was spun off into a standalone, publicly traded company by Labcorp Holdings Inc. (“Labcorp”). In connection with the spin-off, Fortrea entered into several transition services agreements (the “TSAs”), pursuant to which it agreed to pay Labcorp for certain transitional services over a set period.
As alleged, Fortrea discussed the significant cost savings and margin improvements that would result from exiting the TSAs. In truth, Fortrea overstated the cost savings and margin improvement it would achieve by exiting the TSAs, as well as the amount of revenue it would generate from pre-spin projects.
The Stock Declines as the Truth is Revealed
On September 25, 2024, investment bank Jefferies published a report stating that the cost savings Fortrea would achieve from exiting the TSAs were “[n]ot as [m]aterial as [o]ne [m]ight [t]hink.” On this news, the price of Fortrea stock declined $2.73 per share, or over 12%, from a closing price of $22.21 per share on September 24, 2024, to $19.48 per share on September 25, 2024.
Then, on March 3, 2025, Fortrea announced disappointing Q4 and full year 2024 financial results, revealing that the company’s pre-spin projects “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.” On this news, the price of Fortrea stock declined $3.47 per share, or over 25%, from a closing price of $13.85 per share on February 28, 2025, to $10.38 per share on March 3, 2025, the next trading day.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/fortrea-holdings-inc-class-action-lawsuit.
What Can You Do?
If you invested in Fortrea you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/fortrea-holdings-inc-class-action-lawsuit
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/fortrea-holdings-inc-class-action-lawsuit
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