ATI Physical Therapy $24.9M Class Action Settlement

If you purchased or otherwise acquired ATI Physical Therapy, Inc. (ATI) common stock or Fortress Value Acquisition Corp. II (FVAC) common stock between February 22, 2021, and October 19, 2021, you may be eligible to claim a portion of a $24,900,000 settlement from a class action settlement.

ATI Physical Therapy, Inc. has agreed to pay $24,900,000 to settle a class action lawsuit for alleged misstatements and omissions related to ATI’s physical therapist attrition rates.

Can I Claim an Award?

To be eligible to claim an award, you must be a member of the Settlement Class. This includes all persons or entities who:

• Purchased or otherwise acquired ATI securities between February 22, 2021, and October 19, 2021, both dates inclusive.
• Beneficially owned and/or held FVAC common stock as of May 24, 2021, and were eligible to vote at FVAC’s June 15, 2021, special meeting to vote on the Business Combination.
• Beneficially owned and/or held FVAC Class A common stock as of the June 11, 2021, Redemption Date and were entitled to, but did not elect to, redeem their shares.

What Awards Can Class Members Claim?

The awards class members can claim vary based on the specifics of their transactions and holdings. The Net Settlement Fund will be distributed to Authorized Claimants who submit valid Claim Forms. The amount each claimant receives will be calculated based on a recognized loss formula.

For ATI securities eligible for a claim under Section 10(b), the Recognized Loss will depend on factors such as the dates of purchase and sale, and the price paid. The Recognized Loss for ATI securities eligible for a claim under Section 14(a) will be calculated based on the number of shares held as of May 24, 2021, and whether they were exchanged for ATI common stock in the Business Combination.

• Securities Subclass Fund: 75.9% of the Net Settlement Fund will be allocated to the Securities Subclass Fund.
• Multiplan Subclass Fund: 24.1% of the Net Settlement Fund will be allocated to the Multiplan Subclass Fund.

For example, if a claimant purchased ATI securities on July 26, 2021, and sold them on October 20, 2021, the Recognized Loss would be calculated based on the artificial inflation on the purchase date minus the artificial inflation on the sale date.

Is Proof Required to Claim the Reward?

Yes, claimants need to provide proof to claim an award. Documentation may include copies of brokerage confirmation slips, monthly brokerage account statements, or an authorized statement from the broker containing the transactional and holding information.

• Proof of purchase or acquisition of ATI securities during the Settlement Class Period.
• Proof of holdings of FVAC common stock as of May 24, 2021, and June 11, 2021.

How to Claim Your Award

To claim your award, you must complete and submit a Claim Form. You can file a claim online by visiting the online claim form. Alternatively, you can mail your completed Claim Form to the Claims Administrator at the following address:

ATI Class Actions Settlement

c/o Strategic Claims Services

P.O. Box 230

600 N. Jackson Street, Suite 205

Media, PA 19063

Ensure that your Claim Form is postmarked no later than October 18, 2024, or submitted online by 11:59 p.m. Eastern time on October 18, 2024.

How do I Get Paid?

Once your claim is approved, you will receive your payment via check or electronic transfer, depending on the option you selected on your Claim Form.

$24,900,000 Settlement Fund

The settlement fund of $24,900,000 will cover various costs and payments. The Net Settlement Fund will be distributed to Authorized Claimants after deducting the following expenses:

• Federal, state, and local taxes on any income earned by the Settlement Fund.
• Costs and expenses incurred in providing notice to Settlement Class Members and administering the Settlement.
• Attorneys’ fees and Litigation Expenses awarded by the Court.

Important Dates

• Fairness Hearing: September 24, 2024
• Deadline to File a Claim: October 18, 2024

When is the ATI Class Actions Settlement Payout Date?

The awards will be paid after the Court approves the Settlement and all claims have been processed.

Why is There a Class Action Settlement?

The class action lawsuit was filed against ATI Physical Therapy, Inc. for alleged misstatements and omissions related to ATI’s physical therapist attrition rates. The plaintiffs claimed that the company made false and misleading statements about its retention rates, which affected the company’s financial condition and growth.

What Happens Next?

Next, the Court will hold a Fairness Hearing on September 24, 2024, to determine whether to approve the Settlement. If approved, the Claims Administrator will begin processing claims and distributing payments to eligible claimants.