Tivity Health, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of those who acquired Tivity Health, Inc. (“Tivity” or the “Company”) (NASDAQ: TVTY) securities during the period from March 8, 2019 through February 19, 2020. Investors have until April 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) following the Nutrisystem Acquisition, Tivity’s Nutrition segment faced significant operational challenges; and (ii) the foregoing would foreseeably have a significant impact on Tivity’s revenues.
On February 19, 2020, Tivity announced the Company’s financial results for the fourth quarter and year ended December 31, 2019. Tivity disclosed 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 the Company of $272.8 million in the fourth quarter. Concurrently, Tivity announced the resignation of the Company’s Chief Executive Officer (“CEO”) Donato Tramuto (“Tramuto”), effective immediately. Discussing the Company’s financial results on an earnings call, the Company’s interim CEO, Robert Greczyn, stated that “[a]dmittedly, the nutrition business has not worked out as well as planned since the completion of the [Nutrisystem Acquisition] in March 2019.
On this news, Tivity’s stock price fell $10.43 per share, or 45.5%, to close at $12.50 per share on February 20, 2020.
If you acquired Tivity securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.