NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against ATI Physical Therapy, Inc. (“ATI” or the “Company”) (NYSE: ATIP) on behalf of ATI stockholders. Our investigation concerns whether ATI has violated the federal securities laws and/or engaged in other unlawful business practices.
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On February 22, 2021, Fortress Value Acquisition Corp. II, a special purpose acquisition company, issued a press release announcing that it had entered into a merger agreement with ATI Physical Therapy, Inc. In an accompanying investor slide deck detailing the merger, ATI Physical Therapy, Inc. was forecasted to achieve $731 million in revenues and $119 million in adjusted EBITDA in 2021. Approximately three months later, on May 14, 2021, Fortress filed the deal’s definitive proxy statement, which contained the same 2021 forecasts. On June 15, 2021, Fortress shareholders approved the deal.
On July 26, 2021, ATI Physical Therapy reported its financial results for the second quarter of 2021. ATI Physical Therapy management said therapist attrition combined with a competitive hiring market for therapists had negatively impacted the business. As a result, ATI Physical Therapy lowered its full year 2021 revenue guidance to $640 million - $670 million and adjusted EBITDA to $60 million - $70 million, which is significantly below what ATI Physical Therapy said just two months earlier. In addition, ATI Physical Therapy said it would only open 55 - 65 clinics in 2021 instead of 90.
Following this news, ATI Physical Therapy’s shares fell over 43% and closed at $4.72 per share on July 26, 2021.
If you purchased or otherwise acquired ATI shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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