SPAC-Backed ATI Physical Therapy Stock Drop Sparks Investor Suit

An ATI Physical Therapy Inc. investor has sued the SPAC-backed rehabilitation services company over claims its directors misled shareholders before its stock plummeted.

ATI officials failed to disclose the company was facing a labor shortage before it went public through a special purpose acquisition company in June, shareholder Hamza Ghaith said in a complaint filed in the U.S. District Court for the Northern District of Illinois Wednesday.

The Bolingbrook, Ill.-based company first reported the labor problems July 26 and lowered its revenue forecast significantly, causing its share price to fall 43% that day, Ghaith said. The price declined as much ...