Robbins LLP served as co-lead counsel for the consolidated plaintiffs who asserted claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment, contribution, indemnification, and violations of Section 14(a) of the Exchange Act. ATI Physical Therapy was created from the combination of Fortress Value Acquisition Corp. II, a SPAC, and Wilco Holding, Inc. Plaintiffs allege that to obtain stockholder approval of the merger, defendants concealed that ATI faced difficulties retaining therapists and incurred increased labor costs.  The truth came to light less than two months after the emerger closed when ATI revealed that several physical therapist attrition issues and higher labor costs resulted in drastically reduced financial guidance, and that the Company had opened fewer clinics than promised.

After months of coordinated settlement discussions across four separate related matters, the parties reached a global settlement, including $6.450 million to settle the shareholder derivative claims and $6 million to settle the Multiplan claims.

In re ATI Physical Therapy, Inc. S’Holder Deriv. Litig., No. 1-21-cv-06415 (N.D. Ill Sept. 24, 2024)