According to the Complaint, Fortress Value Acquisition Corp. II (“FVAC”) was a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. ATI Physical Therapy, Inc. is an outpatient physical therapy company. It owns and operates nearly 900 physical therapy clinics across 25 states. On June 17, 2021, ATI became public via a business combination with FVAC.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that ATI was experiencing attrition among its physical therapists; (2) that ATI faced increasing competition for clinicians in the labor market; (3) that, as a result of the foregoing, the Company faced difficulties retaining therapists and incurred increased labor costs; (4) that, as a result of the labor shortage, the Company would open fewer new clinics; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On November 18, 2021, the Court issued an Order consolidating cases and appointing Lead Plaintiffs and Counsel. All future docketing was ordered to be done in the lead case 21-CV-04349.

Lead Plaintiffs filed a consolidated amended Complaint on February 8, 2022. Defendants filed a Motion to Dismiss the consolidated amended Complaint on April 11. On September 6, 2023, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.