Cases / Investigations

ATI Physical Therapy, Inc.

Company Name:         ATI Physical Therapy, Inc. f/k/a Fortress Value Acquisition Corp. II

Securities:                   NYSE: ATIP, FAII

Class Period:              April 1, 2021 to July 23, 2021, inclusive       

Lead Plaintiff
Motion Deadline:        October 15, 2021

Court:                           Northern District of Illinois

A federal securities class action lawsuit has been filed against ATI Physical Therapy, Inc. (NYSE: ATIP), formerly known as Fortress Value Acquisition Corp. II (NYSE: FAII), in the U.S. District Court for the Northern District of Illinois against ATI Physical Therapy, Fortress Value Acquisition Corp. II, and certain of their officers and directors.  The securities class action is brought on behalf of investors who (a) purchased or otherwise acquired ATI Physical Therapy securities between April 1, 2021 and July 23, 2021, inclusive; and/or (b) held Fortress Value Acquisition Corp. II Class A common stock as of May 24, 2021 and were eligible to vote at Fortress Value Acquisition Corp. II’s June 15, 2021 special meeting.

On February 22, 2021, Fortress Value Acquisition Corp. II, a special purpose acquisition company, issued a press release announcing that it had entered into a merger agreement with ATI Physical Therapy. In an accompanying investor slide deck detailing the merger, ATI Physical Therapy was forecasted to achieve $731 million in revenues and $119 million in adjusted EBITDA in 2021. Approximately three months later, on May 14, 2021, Fortress filed the deal’s definitive proxy statement, which contained the same 2021 forecasts. On June 15, 2021, Fortress shareholders approved the deal.

On July 26, 2021, ATI Physical Therapy reported its financial results for the second quarter of 2021 (which ended on June 30, 2021). ATI Physical Therapy management said therapist attrition combined with a competitive hiring market for therapists had negatively impacted the business. As a result, ATI Physical Therapy lowered its full year 2021 revenue guidance to $640 million - $670 million and adjusted EBITDA to $60 million - $70 million, which was significantly below what ATI Physical Therapy said just two months earlier. In addition, ATI Physical Therapy said it would only open 55 – 65 clinics in 2021 instead of 90.

Following this news, ATI Physical Therapy’s shares fell over 43% and closed at $4.72 per share on July 26, 2021.

The ATI Physical Therapy securities class action litigation alleges, among other things, that the defendants made false and misleading public statements and failed to disclose that (1) ATI Physical Therapy was experiencing attrition among its physical therapists; (2) ATI Physical Therapy faced increasing competition for clinicians in the labor market; (3) as a result, ATI Physical Therapy faced difficulties retaining therapists and incurred increased labor costs; and (4) as a result of the labor shortage, ATI Physical Therapy would open fewer new clinics; and (5) as a result, the defendants’ positive statements about ATI Physical Therapy’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ATI Physical Therapy securities during the Class Period or who was eligible to vote at the June 15, 2021 special meeting to ask the court to be appointed as lead plaintiff in the ATI Physical Therapy securities class action litigation.  A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit, and can select a law firm of its choice to litigate the class action lawsuit.  A court will generally appoint as lead plaintiff the movant with the greatest financial interest in the relief sought by the proposed class of investors and who is also typical and adequate of the proposed class.  An investor’s ability to share in any potential future recovery obtained in the litigation is not dependent upon serving as lead plaintiff.

If you wish to serve as lead plaintiff in the ATI Physical Therapy securities class action litigation or have questions concerning your rights regarding the ATI Physical Therapy securities class action litigation, please contact Joshua Ruthizer at (212) 451-9668, (877) 370-7703, or

The deadline for ATI Physical Therapy investors to file a motion for appointment as lead plaintiff is October 15, 2021.

For further information about this case, contact:

Robert C. Finkel

Joshua W. Ruthizer

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