The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Tivity Health Inc. ("Tivity" or the "Company") TVTY securities between March 8, 2019 and February 19, 2020, inclusive (the "Class Period"). Tivity investors have until April 27, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On March 8, 2019, Tivity acquired Nutrisystem, Inc. for approximately $1.3 billion (the "Nutrisystem Acquisition").
On February 19, 2020, after the market closed, Tivity 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 also announced that its Chief Executive Officer Donato Tramuto had resigned.
On this news, the Company's stock price fell $10.43, or nearly 46%, to close at $12.50 per share on February 20, 2020, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) that, following the Nutrisystem Acquisition, Tivity's Nutrition segment faced significant operational challenges; (2) that the foregoing would foreseeably have a significant impact on Tivity's revenues; and (3) that, as a result, the Company's public statements were materially false and misleading at all relevant times.
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If you purchased Tivity securities during the Class Period, you may move the Court no later than April 27, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Tivity securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200226006048/en/
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