ATI Physical Therapy, Inc. (ATIP) Made Misleading Statements Regarding its Business, Operations, and Prospects
Fortress Value Acquisition Corp. II (“FVAC”) was a special purpose acquisition company that went public in August 2020. ATI is an outpatient physical therapy company that owns and operates nearly 900 clinics across 25 states. On June 17, 2021, ATI became public via a business combination with FVAC (“business combination”). A class action was filed on behalf of all persons and entities that purchased or otherwise acquired ATI Physical Therapy, Inc. (NYSE: ATIP) securities between April 1, 2021 and July 23, 2021, and/or held FVAC Class A common stock as of May 24, 2021 and were eligible to vote at FVAC’s June 15, 2021 special meeting. The complaint alleges violations of the Securities Exchange Act of 1934.
During the relevant period, the Company stated it was “focused on accelerating hiring to serve outsized demand,” noting it was the “Employer of Choice for PT Clinicians” and touted its staffing strategy, claiming that it would achieve “significant labor savings through more productive staffing model.”
On July 26, 2021, ATI reported its financial results for second quarter 2021, the period in which the business combination was complete. ATI 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 labor costs.” Though ATI was implementing certain remedial actions, the Company reduced its fiscal 2021 forecast due to the foregoing factors. On this news, the Company’s share price fell $3.62, or 43%, to close at $4.72 per share on July 26, 2021, and declined an additional 19% the next trading session. The stock has not yet recovered.
If you purchased shares of ATI Physical Therapy, Inc. (ATIP) securities between April 1, 2021 and July 23, 2021, and/or held FVAC Class A common stock as of May 24, 2021 and were eligible to vote at FVAC’s June 15, 2021 special meeting, you have until October 15, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.