Tivity Health, Inc. (NASDAQ: TVTY) Investor Securities Class Action Lawsuit 02/25/2020

If you purchased a significant amount of shares of Tivity Health, Inc. (NASDAQ: TVTY) between March 8, 2019 and February 19, 2020, and / or if you purchased any NASDAQ: TVTY shares prior to March 2019 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 27, 2020. NASDAQ: TVTY investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Tivity Health
Case Name: 
Tivity Health Shareholder Class Action Lawsuit 02/25/2020
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: TVTY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/25/2020
Class Period Begin: 
03/08/2019
Class Period End: 
02/19/2020
Court of Filing: 
U.S. District Court for the Middle District of Tennessee
Deadline To File for Lead: 
04/27/2020
Summary: 

An investor in shares of Tivity Health, Inc. (NASDAQ: TVTY) filed a lawsuit in the U.S. District Court for the Middle District of Tennessee over alleged violations of Federal Securities Laws by Tivity Health, Inc. in connection with certain allegedly false and misleading statements made between March 8, 2019 and February 19, 2020.

Franklin, TN based Tivity Health, Inc. provides fitness and health improvement programs in the United States. Tivity Health, Inc. was formerly known as Healthways, Inc. and changed its name to Tivity Health, Inc. in January 2017. In December 2018, Tivity Health, Inc. announced that it would acquire Nutrisystem, Inc. ("Nutrisystem"), a provider of weight management products and services (the "Nutrisystem Acquisition").
Tivity Health, Inc. reported that its annual Total Revenue rose from $556.94 million in 2017 to $606.29 million in 2018, and that its Net Income increased from $63.71 million in 2017 to $98.8 million in 2018.

On March 8, 2019, Tivity Health, Inc. issued a press release entitled "Tivity Health Completes Acquisition of Nutrisystem." In the press release, Tivity Health, Inc. announced the completion of the Nutrisystem Acquisition for approximately $1.3 billion in cash and stock. Tivity Health, Inc. also assured investors that "[w]ith this acquisition, Tivity Health will be unique in offering, at scale, an integrated portfolio of fitness, nutrition and social engagement solutions to support overall health and wellness." The release further described the benefits of the Nutrisystem Acquisition including "double digit accretion to Tivity Health's adjusted EPS in 2020 and beyond, . . . [s]ignificant potential for value creation with expected annual cost synergies of ~$30-35 million . . . [and] [n]ew business model with projected substantial cash flow to de-lever the balance sheet."
On May 8, 2019, Tivity Health, Inc announced its financial results for the quarter ended March 31, 2019 and therein represented that the integration of Nutrisystem into Tivity's operations was "on track."

On February 19, 2020, after the market closed, Tivity Health, Inc. announced its fourth quarter and full year 2019 financial results in a press release. Therein, the Company reported a fourth quarter net loss of $323.1 million, a $137.1 million charge to goodwill and $240.0 million impairment charge to the Nutrisystem tradename. Tivity Health, Inc. also announced that its Chief Executive Officer Donato Tramuto had resigned. Tivity Health, Inc. disclosed, among other things, that its "Nutrition segment had a disappointing end to 2019," which included "a non-cash impairment charge of $(377.1) million," contributing to a net loss for Tivity of $272.8 million in the fourth quarter. Concurrently, Tivity announced the resignation of its CEO, Donato Tramuto. Discussing Tivity's financial results on an earnings call later that day, Tivity's interim CEO, Robert Greczyn, stated "[a]dmittedly, the nutrition business has not worked out as well as planned since the completion of the [Nutrisystem Acquisition] in March 2019."
Shares of Tivity Health, Inc. (NASDAQ: TVTY) declined from $26.07 per share on January 17, 2020 to a slow as $12.01 per share on February 20, 2020.