SAN FRANCISCO, Aug. 17, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges ATI Physical Therapy, Inc. (NYSE: ATIP) investors and Fortress Value Acquisition Corp. II (NYSE: FVII) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Class Period: Apr. 1, 2021 – July 23, 2021
Lead Plaintiff Deadline: Oct. 15, 2021
Visit: www.hbsslaw.com/investor-fraud/ATIP
Contact An Attorney Now: ATIP@hbsslaw.com
844-916-0895
ATI Physical Therapy, Inc. (ATIP/ FVII) Securities Class Action:
The litigation 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.
According to the complaint, defendants did not disclose to investors that (1) ATI was experiencing attrition among its physical therapists, (2) ATI faced increasing competition for therapists, and (3) these difficulties would and did result in increased labor costs.
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.
On Aug. 9, 2021 ATI’s CEO (Labeed Diab) left the company.
Then, on Aug. 16, 2021 the company reported a whopping $467 million impairment charge due in large part to accelerated attrition and higher labor costs.
These events sent the price of ATI Physical Therapy shares crashing lower.
“We’re focused on investors’ losses and proving company insiders overstated ATI Physical Therapy’s asset values 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 ATIP@hbsslaw.com.
About Hagens Berman
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Contact:
Reed Kathrein, 844-916-0895
