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Fortrea Investigation Initiated: Kahn Swick & Foti, LLC Investigates the Officers and Directors of Fortrea Holdings, Inc. - FTRE

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NEW YORK and NEW ORLEANS, Jan. 20, 2026 /PRNewswire/ -- Former Attorney General of Louisiana, Charle...

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AI Summary

Kahn Swick & Foti has launched an investigation into Fortrea Holdings regarding potential fiduciary breaches by executives after the company reported disappointing financial results for 2024. This development, alongside an ongoing class-action lawsuit, could harm investor confidence and the company's stock performance in the short term.

Sentiment Rationale

Legal investigations and discovery of financial mismanagement tend to lower investor confidence, as seen in similar past cases like Valeant Pharmaceuticals, impacting stock prices significantly.

Trading Thesis

Consider reducing exposure to FTRE in the near term due to legal risks and missed guidance.

Market-Moving

  • Ongoing investigation raises red flags for potential shareholder claims against FTRE.
  • Disappointing Q4 and 2024 results could lead to further downward pressure on stock.
  • Negative sentiment from legal action may deter new investors.

Key Facts

  • Kahn Swick & Foti has initiated an investigation into Fortrea Holdings.
  • Investigation focuses on potential fiduciary breaches by Fortrea's executives.
  • Fortrea missed 2024 revenue and adjusted EBITDA guidance significantly.
  • Company and executives are already facing a class-action lawsuit.
  • The situation raises concerns over corporate governance and shareholder value.

Companies Mentioned

  • Labcorp Holdings Inc. (LH): Spinoff context affects FTRE's financial performance expectations.

Corporate Developments

This situation fits within 'Corporate Developments' as it involves potential breaches in fiduciary duties and lawsuits affecting corporate governance and investor confidence. These issues can have significant ramifications for shareholder value and stock performance.

Fortrea Holdings, Inc. Investigation Launched by Kahn Swick & Foti, LLC – Stock Symbol: FTRE

Kahn Swick & Foti, LLC (KSF), under the leadership of former Louisiana Attorney General Charles C. Foti, Jr., has announced the initiation of an investigation into Fortrea Holdings, Inc. (NasdaqGS: FTRE). This investigation focuses on potential breaches of fiduciary duties by the company's officers and directors, specifically regarding compliance with state and federal laws.

Background on Fortrea

In June 2023, Fortrea Holdings was established as an independent, publicly traded entity following its spin-off from Labcorp Holdings Inc. This transition involved several agreements whereby Fortrea committed to compensate Labcorp for essential transitional services over a predetermined timeframe.

However, recent developments have raised concerns among investors. On March 3, 2025, Fortrea revealed disappointing financial results for Q4 and the full year of 2024. The company reported missing its projected guidance for both revenue and adjusted EBITDA, which has raised questions about its financial health.

Disappointing Financial Performance

Fortrea's announcement highlighted that its pre-spin projects were yielding "less revenue and less profitability than expected for 2025." Additionally, it was noted that "post-spin work is not coming on fast enough to offset the pre-spin contract economics," indicating a struggle to generate sufficient earnings post-separation from Labcorp.

  • Missed revenue and EBITDA guidance for full year 2024
  • Pre-spin projects underperforming expectations
  • Concerns over the pace of post-spin revenue generation

Ongoing Securities Class Action Lawsuit

In light of these disappointing results, Fortrea and some of its executives are facing a securities class action lawsuit. This legal action accuses them of failing to provide critical information to shareholders, thereby violating federal securities laws.

The investigation by KSF aims to determine whether the officers and/or directors of Fortrea have indeed breached their fiduciary responsibilities to shareholders, which could have significant implications for investor recovery in the ongoing lawsuit.

Contact Information for Investors

If you own shares of Fortrea Holdings, Inc. and possess information that could aid KSF in this investigation, or if you would like to inquire about your legal rights, please reach out via:

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC is recognized as one of the leading boutique securities litigation law firms in the United States, with a track record of successful recoveries for investors. The firm was recently ranked in the top 10 nationally by ISS Securities Class Action Services based on settlement value.

KSF represents a diverse range of clients, including both institutional and retail investors, who seek redress for losses resulting from corporate fraud and malfeasance by publicly traded companies. KSF has offices strategically located across the United States and in Luxembourg, enhancing its ability to serve clients effectively.

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