The law firm Gainey McKenna & Egleston has filed a securities class action lawsuit on behalf of investors who purchased shares of Fortrea Holdings, Inc. (NASDAQ: FTRE) between July 3, 2023 and February 28, 2025.
The lawsuit claims Fortrea misled shareholders about its post-spin-off financial health and future earnings.
Filed in the U.S. District Court for the Southern District of New York, the complaint alleges that Fortrea made overly rosy statements about expected revenue and cost savings – projections that later proved unreliable.
What the Lawsuit Says
According to the filing, Fortrea gave investors the impression that its transition after the spin-off was on solid financial footing.
The complaint outlines several key concerns:
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The company allegedly overestimated how much revenue would come from inherited “Pre-Spin Projects.”
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Fortrea also downplayed the true costs of exiting its Transition Services Agreements.
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As a result, the company’s 2025 EBITDA targets were inflated, giving a misleading picture of future performance.
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These issues, the lawsuit says, made Fortrea’s overall business outlook appear stronger than it really was.
Shareholders who bought Fortrea stock during the Class Period may be eligible to join the case.
Those interested in leading the lawsuit have until August 1, 2025 to file a motion to become lead plaintiff.
Investors seeking more information or wanting to discuss their legal options are encouraged to contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. at Gainey McKenna & Egleston. The firm can be reached by phone at (212) 983-1300, or via email at tjmckenna@gme-law.com or gegleston@gme-law.com.
Fortrea Holdings Inc. (NASDAQ: FTRE) is a global contract research organization (CRO) specializing in clinical trials and drug development. Spun off from Labcorp in 2023, Fortrea operates in over 90 countries and supports biotech and pharmaceutical companies with Phase I-IV trial services, regulatory consulting, and post-approval solutions. The company is headquartered in Durham, North Carolina.
Gainey McKenna & Egleston is a nationally recognized law firm with offices in New York and New Jersey, specializing in complex civil litigation. With nearly three decades of experience, the firm focuses on class action lawsuits representing investors, consumers, and small businesses. Their practice areas include securities litigation, shareholder derivative actions, consumer fraud, ERISA, and employment law. The firm is adept at handling multi-district litigation and is well-versed in the procedures outlined in the Manual for Complex Litigation, particularly regarding class certification. Gainey McKenna & Egleston is committed to aggressively advocating for their clients, utilizing all necessary resources to achieve favorable outcomes.
