Dismissal Of Investor Claims Over Therapist Attrition Misstatements Sought

Mealey's (April 14, 2022, 12:32 PM EDT) -- CHICAGO — Dismissal of shareholder claims in a securities class action lawsuit against outpatient physical therapy company ATI Physical Therapy Inc., certain of its senior executives, and former directors of a special purpose acquisition company (SPAC) that merged with ATI is necessary because the shareholders have failed to sufficiently plead that the defendants violated federal securities laws by failing to disclose that ATI was experiencing an attrition rate among its physical therapists that was more than two times higher than industry average, the defendants argue in a pair of dismissal motions filed on April 11 in Illinois federal court....