Fortrea Holdings sued for securities fraud by Bleichmar Fonti & Auld LLP.

A lawsuit has been filed against Fortrea Holdings Inc. and senior executives for potential federal securities law violations. 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. Investors have until August 1, 2025, to ask the Court to be appointed to lead the case.

NEW YORK, June 6, 2025 — Leading securities law firm Bleichmar Fonti & Auld LLP has announced the filing of a lawsuit against Fortrea Holdings Inc. (NASDAQ: FTRE) and certain of its senior executives for potential violations of the federal securities laws [1]. 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.

Investors who invested in Fortrea are encouraged to obtain additional information by visiting [https://www.bfalaw.com/cases-investigations/fortrea-holdings-inc-class-action-lawsuit](https://www.bfalaw.com/cases-investigations/fortrea-holdings-inc-class-action-lawsuit). They have until August 1, 2025, to ask the Court to be appointed to lead the case. 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.

The lawsuit alleges that Fortrea overstated the cost savings and margin improvements it would achieve by exiting transition services agreements (TSAs) with Labcorp Holdings Inc. (Labcorp). Fortrea was spun off into a standalone, publicly traded company by Labcorp in June 2023 [2].

On September 25, 2024, investment bank Jefferies published a report stating that the cost savings Fortrea would achieve from exiting the TSAs were "not as material as one might think." 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 [1].

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 [1].

Investors who suffered losses are encouraged to submit their information to the firm. All representation is on a contingency fee basis, with no cost to the investors. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses [1].

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 [1].

References:
[1] https://www.globenewswire.com/news-release/2025/06/06/3095089/0/en/FTRE-CLASS-ACTION-NOTICE-Fortrea-Holdings-Inc-Sued-for-Fraud-after-the-Stock-Plummeted-25-Investors-with-Losses-are-Urged-to-Contact-BFA-Law-NASDAQ-FTRE.html
[2] https://www.prnewswire.com/news-releases/ftre-investors-have-opportunity-to-lead-fortrea-holdings-inc-securities-fraud-lawsuit-302474807.html