Introduction to the Fortrea Class Action Lawsuit
The Fortrea class action lawsuit seeks to represent purchasers or acquirers of Fortrea Holdings Inc. (NASDAQ: FTRE) securities between July 3, 2023 and February 28, 2025, inclusive (the “Class Period”). Captioned Deslande v. Fortrea Holdings Inc., No. 25-cv-04630 (S.D.N.Y.), the Fortrea class action lawsuit charges Fortrea and certain of Fortrea’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Fortrea class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at [email protected].
Lead plaintiff motions for the Fortrea class action lawsuit must be filed with the court no later than August 1, 2025.
In this guide, we provide a timeline of events for the entire duration of a typical securities class action lawsuit like the Fortrea class action lawsuit, with approximately how long each step takes so you will have a better understanding of the timing of events in the Fortrea class action lawsuit.
Lead Plaintiff Appointment in the Fortrea Class Action Lawsuit: Approximately Four Months After Initial Complaint Filed
When a securities class action is filed such as the Fortrea class action lawsuit, the person who files the first complaint is required to publish a notice announcing the filing. Anyone who wants to be lead plaintiff on behalf of the class in the Fortrea class action lawsuit must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
At the end of the sixty days, the court can rule on the lead plaintiff’s motion just on the pleading filed with the court, or the judge may set a hearing on the motion for 30–45 days after the sixty-day expiration. If a hearing is held, the judge will issue an order afterwards appointing a lead plaintiff which could be a couple weeks to a couple months.
Regardless, the PSLRA states that not later than 90 days after the initial filing and notice the court must consider the lead plaintiff’s motions and must consolidate all the related cases filed before issuing an order on the lead plaintiff. Thus, from the initial filing until a lead plaintiff is appointed, about four months have passed.
Filing of a Consolidated Complaint: Approximately Six Months After Initial Filing
After the appointment of lead plaintiff, the court will enter a scheduling order which will include a time, usually about 60 days, for the lead plaintiff to file a consolidated complaint consolidating the allegations all complaints along with any new additional allegations.
The Defendants Motion to Dismiss: Decided Nearly a Year After the Initial Complaint Was Filed
In the same scheduling order, the court will also set a time for the defendants to file a motion to dismiss and schedule a briefing and possibly a hearing on the motion once the briefing is completed. The defendants may have 45 to 60 days to file the motion to dismiss and then the briefing schedule is typically around 60 days, and the court will then enter an order either granting or denying the motion to dismiss.
Thus, by the time defendants’ motion to dismiss is decided nearly a year has passed since the filing of the original complaint in the Fortrea class action lawsuit and could be possibly longer given the court’s schedule.
Completion Of Discovery: Two-and-a-Half-Years After Initial Filing
If the defendant’s motion to dismiss is denied, the parties will move into the discovery phase including the exchange of documents, request for admissions, interrogatories, depositions, and third-party subpoenas, among others.
The discovery phase usually takes about a year, though it can be less or more depending on the size of the case and its complexity.
Thus, by the time discovery is completed approximately two-and-a-half years have passed since the initial filing, which is approximately how long it takes a securities class action to resolve.
Settlement Negotiation and Mediation
By now two-and-a-half to three years have passed since the initial filing of the lawsuit. However, it is at this point that nearly all securities class actions result in a settlement, but that process takes time also. Once the parties have reached an agreement, it will have to be preliminarily approved by the court with notice to shareholders with the right to object, obtain final approval of the settlement, and then the claims process begins.
Usually, a third-party administrator is hired to administer the common fund. If the parties have complied with all the steps for approval, the judge will approve the distribution of the settlement fund by the claim’s administrator. You will receive a court-appointed notice and have to send in a claim form confirming your purchases and sales. This process alone can take up to a year and therefore it may be four years until the case is finally resolved.
Frequently Asked Questions About the Fortrea Lawsuit
Q1. What is the Fortrea class action lawsuit about? The lawsuit alleges that Fortrea Holdings Inc. made false and misleading statements about its financial performance, including overestimating revenue from pre-spin projects and overstating cost savings from exiting transition services agreements.
Q2. Who is eligible to participate in the Fortrea lawsuit? Investors who purchased Fortrea Holdings Inc. securities between July 3, 2023, and February 28, 2025, are eligible to participate in the class action lawsuit.
Q3. What triggered the significant drop in Fortrea’s stock price? Fortrea’s stock price plummeted due to analyst downgrades, missed financial targets, and revelations about lower-than-expected profitability from pre-spin projects and slower growth of post-spin work.
Q4. How can affected investors join the lawsuit? The deadline to file a lead plaintiff motion is August 1, 2025. If you do not intend on moving for lead plaintiff but purchased during the class period and suffered a loss, you will automatically be a member of the class and do not need to do anything further at this pointl
Q5. What are the potential outcomes of this lawsuit for investors? While outcomes are uncertain, successful class action lawsuits can result in financial compensation for affected investors. However, investors should note that no class has been certified yet, and recovery is not guaranteed.
Contact Timothy L. Miles Today About a Fortrea Class Action Lawsuit
If you suffered losses in Fortrea stock, call us today for a free case evaluation about an Fortrea Class Action Lawsuit. 855-846-6529 or [email protected] (24/7/365).
Timothy L. Miles, Esq.
Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr. #247
Mailbox #1091
Brentwood,TN 37027
Phone: (855) Tim-MLaw (855-846-6529)
Email: [email protected]
Website: www.classactionlawyertn.com
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