ATI Physical Therapy, Inc.

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) that ATI was experiencing attrition among its physical therapists;
(2) that ATI faced increasing competition for clinicians in the labor market;
(3) that, as a result of the foregoing, the Company faced difficulties retaining therapists and incurred increased labor costs;
(4) that, as a result of the labor shortage, the Company would open fewer new clinics; and
(5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.