SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of: (a) ATI Physical Therapy, Inc. f/k/a Fortress Value Acquisition Corp. II (“FVAC”) (NYSE: ATIP) securities between April 1, 2021 and July 23, 2021, inclusive (the “Class Period”); and/or (b) holders of FVAC Class A common stock as of May 24, 2021 who were eligible to vote at FVAC’s June 15, 2021 special meeting have until October 15, 2021 to seek appointment as lead plaintiff in the ATI Physical Therapy class action lawsuit. The ATI Physical Therapy class action lawsuit charges ATI Physical Therapy and certain of its and FVAC’s top executives and directors with violations of the Securities Exchange Act of 1934. The ATI Physical Therapy class action lawsuit was commenced on August 16, 2021 in the Northern District of Illinois and is captioned Burbige v. ATI Physical Therapy, Inc. f/k/a Fortress Value Acquisition Corp. II, No. 21-cv-04349.
If you wish to serve as lead plaintiff of the ATI Physical Therapy class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the ATI Physical Therapy class action lawsuit must be filed with the court no later than October 15, 2021.
CASE ALLEGATIONS: FVAC was a special purpose acquisition company (“SPAC” or “blank check” company”) formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. ATI Physical Therapy is an outpatient physical therapy company that owns and operates nearly 90 physical therapy clinics across 25 states. On June 17, 2021, ATI Physical Therapy became public via a business combination with FVAC.
The ATI Physical Therapy class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) ATI Physical Therapy was experiencing attrition among its physical therapists; (ii) ATI Physical Therapy faced increasing competition for clinicians in the labor market; (iii) as a result, ATI Physical Therapy faced difficulties retaining therapists and incurred increased labor costs; (iv) given the labor shortage, ATI Physical Therapy would open fewer new clinics; and (v) consequently, defendants’ positive statements about ATI Physical Therapy’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On July 26, 2021, ATI Physical Therapy reported its financial results for the second quarter of 2021, the period in which the business combination was completed. Among other things, ATI Physical Therapy reported that “the acceleration of attrition among [its] therapists in the second quarter and continuing into the third quarter, combined with the intensifying competition for clinicians in the labor market, prevented us from being able to meet the demand we have and increased our expectations for labor costs.” Though ATI Physical Therapy was implementing certain remedial actions, ATI Physical Therapy reduced its fiscal 2021 forecast due to the foregoing factors. On this news, ATI Physical Therapy’s share price fell 43%. ATI Physical Therapy’s share price continued to decline the next trading session by as much as 19%, further damaging investors.
Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller Rudman & Dowd LLP’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased: (a) ATI Physical Therapy securities during the Class Period; and/or (b) held FVAC Class A common stock as of May 24, 2021 and were eligible to vote at FVAC’s June 15, 2021 special meeting to seek appointment as lead plaintiff in the ATI Physical Therapy class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the ATI Physical Therapy class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the ATI Physical Therapy class action lawsuit. An investor’s ability to share in any potential future recovery of the ATI Physical Therapy action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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