SAN FRANCISCO, Oct. 12, 2021 /PRNewswire/ — Hagens Berman urges ATI Physical Therapy, Inc. (NYSE: ATIP) investors and Fortress Value Acquisition Corp. II (NYSE: FAII) investors with losses in excess of $100,000 to submit your losses now.
ATI Physical Therapy, Inc. (ATIP/ FAII) Securities Class Action:
The lawsuit focuses on statements by ATI Physical Therapy, its senior management, Fortress, and others concerning ATI Physical Therapy’s financial performance, operations and business prospects leading up to and after its merger with special purpose acquisition company Fortress Value Acquisition Corp. II that closed on or about June 16, 2021.
Beginning on Feb. 22, 2021, and throughout the Class Period, Defendants touted the company’s growth opportunities, its plan for 90 new clinic openings, and its “very high retention” and “low turnover” of its physical therapists.
But on July 26, 2021, slightly a month after the merger closed, ATI Physical Therapy reported disappointing Q2 2021 financial results and slashed its full year revenue expectations by as much as 12%, blaming the dismal outlook on accelerated attrition of physical therapists and a corresponding reduction in estimated new clinic openings. The company also revealed it could open just 55 – 65 new clinics in 2021.
The company also disclosed it “has determined that the revision to its 2021 forecast constitutes an interim triggering event that requires further analysis with respect to potential impairment to goodwill and trade name intangible assets.”
Then, on Aug. 9, 2021, ATI announced its CEO (Labeed Diab) abruptly left the company.
These events sent the price of ATI Physical Therapy shares crashing lower.
“We’re focused on investors’ losses and proving Defendants overstated ATI Physical Therapy’s growth potential and expected 2021 revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in ATI Physical Therapy or Fortress and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding ATI Physical Therapy or Fortress should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:[email protected].
About Hagens Berman
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP