Physical Therapy Firm Shareholders Say SPAC Insiders Misled Them

Shareholders of a physical therapy firm sued the board of a SPAC that brought the company public, alleging investors were misled over a merger that benefited the insiders’ own financial interests.

Fortress Value Acquisition Corp. II, a special purpose acquisition company, changed its name to ATI Physical Therapy, Inc. after its merger with outpatient physical therapy provider company Wilco Holdco, Inc. in June 2021.

The stockholder class action complaint was filed by shareholder Wendell Robinson in the Delaware Chancery court and was made public on Feb. 10.

The SPAC’s board and others that the lawsuit calls “insiders” ...