FTRE INVESTOR NOTICE: Fortrea Holdings Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

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You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected].

CASE ALLEGATIONS: Fortrea is a global clinical research organization ("CRO") that provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotechnology, and medical device customers. According to the complaint, in June 2023, Labcorp Holdings Inc. spun off Fortrea as a standalone, publicly traded company (the "Spin-Off"). At the time of the Spin-Off, certain of the long-term projects in Fortrea's portfolio remained ongoing (the "Pre-Spin Projects"). In connection with the Spin-Off, Labcorp and Fortrea entered into several transition services agreements (the "TSAs"), pursuant to which Fortrea pays Labcorp to provide certain transitional services for a set period.

The Fortrea class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to Fortrea's 2025 earnings; (ii) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs; (iii) as a result, Fortrea's previously announced EBITDA targets for 2025 were inflated; and (iv) accordingly, the viability of Fortrea's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated.