An Illinois federal judge partially denied ATI Physical Therapy’s bid to nix a class action that alleges the company misled investors about a labor shortage.
The Bolingbrook, IL-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, Bloomberg reports. Read more.
