LOS ANGELES, July 18, 2025 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Fortrea Holdings Inc. (“Fortrea” or the “Company”) (NASDAQ: FTRE) investors of a class action representing investors that bought securities between July 3, 2023 and February 28, 2025, inclusive (the “Class Period”). Fortrea investors have until August 1, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
CASE ALLEGATIONS: Fortrea is a global clinical research organization (CRO) that helps develop pharmaceutical and medical device products. Back in June 2023, Labcorp spun Fortrea off into a separate, publicly traded company. At that time, Fortrea still had a number of long-term projects that started before the spin-off (called the “Pre-Spin Projects”), and Labcorp agreed to keep helping with operations temporarily through transition service agreements (TSAs), which Fortrea paid for.
Now, there’s a class action lawsuit claiming that Fortrea misled investors in a few major ways:
- They overestimated how much revenue the Pre-Spin Projects would generate for 2025.
- They also overstated the cost savings they’d achieve by phasing out the TSAs.
- Because of this, their EBITDA targets for 2025 were inflated.
- Ultimately, this meant they painted a more positive picture of their post-spin-off business model than was realistic.
The lawsuit also points to several market events that drove down Fortrea’s stock:
- On September 25, 2024, Jefferies downgraded Fortrea from Buy to Hold, calling out weaknesses in the CRO model, especially with biotech funding under pressure. They also said Fortrea’s supposed cost savings from dropping the TSAs weren’t really savings at all—just swapping one set of costs for another. After that, Fortrea’s stock dropped over 12%.
- Then on December 6, 2024, Baird Equity Research downgraded Fortrea to Neutral after the company abruptly canceled two conferences. They cited concerns about Fortrea’s inconsistent post-spin track record and confusing communication. The stock fell another 8%.
- Finally, on March 3, 2025, Fortrea released disappointing Q4 and full-year 2024 results. On their earnings call, they admitted their 2025 revenue and EBITDA goals were no longer realistic. The Pre-Spin Projects were nearing their end and weren’t performing as expected. Meanwhile, new business wasn’t coming in fast enough to replace the loss. Because of all this, the stock dropped more than 25%.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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