NEW YORK, Oct. 7, 2021 /PRNewswire/ -- Today, prominent
investor rights law firm Bernstein Litowitz Berger & Grossmann
LLP ("BLB&G") filed a class action lawsuit for violations of
the federal securities laws in the U.S. District Court for the
Northern District of Illinois
against ATI Physical Therapy, Inc. ("ATI" or the "Company") f/k/a
Fortress Value Acquisition Corp. II ("FVAC") and certain of the
Company's current and former senior executives and the former
directors of FVAC (collectively, "Defendants"). The complaint
expands the class period that was asserted in a previously-filed
related securities class action pending against ATI captioned
Burbige v. ATI Physical Therapy, Inc. f/k/a Fortress Value
Acquisition Corp. II, No. 1:21-cv-04349 (N.D. Ill.), and is
brought on behalf of purchasers of ATI securities between
February 22, 2021 and July 23, 2021, inclusive (the "Class Period")
and/or holders of shares of FVAC Class A common stock as of
May 24, 2021 who were eligible to
vote at FVAC's June 15, 2021 special
meeting.
BLB&G filed this action on behalf of its client, the City of
Melbourne Firefighters' Retirement System, and the case is
captioned City of Melbourne Firefighters' Retirement System v.
ATI Physical Therapy, Inc. f/k/a Fortress Value Acquisition Corp.
II, No. 1:21-cv-05345 (N.D. Ill.). The complaint is
based on an extensive investigation and a careful evaluation of the
merits of this case. A copy of the complaint is available on
BLB&G's website by clicking here.
ATI's Alleged Fraud
Headquartered in Bolingbrook,
Illinois, ATI is a physical therapy provider, specializing
in outpatient rehabilitation and adjacent healthcare services, and
operates nearly 900 physical therapy clinics across 24 states. As a
provider of rehabilitation services, the Company's ability to
recruit and retain enough physical therapists to meet patient
demand is vital to the success and growth of ATI's
business. On June 17, 2021, ATI
became a publicly traded company through the completion of a merger
with FVAC (the "Merger"), a special purpose acquisition company,
and began trading on the New York
State Exchange.
The complaint alleges that, throughout the Class Period, ATI
falsely touted the Company's high rate of retention of its physical
therapists and adequate clinical staffing levels, and repeatedly
affirmed its earnings guidance for 2021. ATI also assured
investors that it was poised for growth and expected to open at
least 90 new clinics in 2021. The Company also represented
that it faced purported risks with regard to increased competition
for clinicians in the labor market and its ability to recruit and
retain physical therapists. In reality, however, the Company knew
that it was experiencing severe attrition among its physical
therapists and facing increasing competition for clinicians in the
labor market. As a result, ATI could not retain enough physical
therapists to serve patient demand and incurred increased labor
costs, which negatively impacted its business and limited its
ability to open new clinics. As a result of Defendants'
misrepresentations, ATI securities traded at artificially inflated
prices during the Class Period.
The truth was disclosed on July 26,
2021, less than two months after the Merger closed, when ATI
drastically reduced its full-year earnings guidance and revealed
that it could only open between 55 and 65 new clinics in
2021. The Company attributed its guidance cut to significant
attrition among its physical therapists that prevented it from
meeting patient demand, and a competitive hiring market which
significantly increased its labor costs. As a result of these
disclosures, the price of ATI securities declined
precipitously.
The filing of this action does not alter the previously
established deadline to seek appointment as Lead
Plaintiff. Pursuant to the August 16,
2021 notice published in connection with the
Burbige action, under the Private Securities Litigation
Reform Act of 1995, investors who purchased or otherwise acquired
ATI securities during the Class Period and/or held shares of FVAC
Class A common stock as of May 24,
2021 may, no later than October 15,
2021, seek to be appointed as Lead Plaintiff for the
Class. Any member of the proposed Class may seek to serve as
Lead Plaintiff through counsel of their choice, or may choose to do
nothing and remain a member of the proposed Class.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Scott R. Foglietta of BLB&G at
212-554-1903, or via e-mail at scott.foglietta@blbglaw.com.
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm
advising institutional investors on issues related to corporate
governance, shareholder rights, and securities litigation. Since
its founding in 1983, BLB&G has built an international
reputation for excellence and integrity and pioneered the use of
the litigation process to achieve precedent-setting governance
reforms. Unique among its peers, BLB&G has obtained several of
the largest and most significant securities recoveries in history,
recovering over $33 billion on behalf
of defrauded investors. More information about the firm can be
found online at www.blbglaw.com.
Contact
Scott R.
Foglietta
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1903
scott.foglietta@blbglaw.com
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SOURCE Bernstein Litowitz Berger & Grossmann LLP