Lawsuit filed for Investors in shares of Tivity Health, Inc. (NASDAQ: TVTY)

An investor, who purchased shares of Tivity Health, Inc. (NASDAQ: TVTY), filed a lawsuit over alleged violations of Federal Securities Laws by Tivity Health, Inc..

Investors who purchased shares of Tivity Health, Inc. (NASDAQ: TVTY) 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 at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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."

The plaintiff claims that between March 8, 2019 and February 19, 2020, the defendants made false and/or misleading statements and/or failed to disclose that following the Nutrisystem Acquisition, Tivity's Nutrition segment faced significant operational challenges, that the foregoing would foreseeably have a significant impact on Tivity's revenues, and that as a result, Tivity's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Tivity Health, Inc. (NASDAQ: TVTY) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.