ATI Physical Therapy Must Face Investor Class Action, Judge Says

An Illinois federal judge partially denied ATI Physical Therapy Inc.’s bid to nix a class action that alleges the company misled investors about a labor shortage.

The Bolingbrook, Illinois-based company company went public through a special purpose acquisition company in June 2021. Investors sued ATI later that year, saying that they lost out when the company’s stock dropped post-merger after it reported labor problems in July 2021, alongside announcements of a lowered revenue forecast and a lowered estimate for new clinic openings. ATI’s stock dropped by $4.52 per share the day after the announcement.

Anonymous former ATI employees told the ...