According to the law firm press release, Life Time is a chain of fitness centers operating in the United States and Canada based out of Chanhassen, Minnesota. On March 16, 2015, the Company announced its proposed acquisition (the “Proposed Acquisition”) by a consortium of investors for $72.10 per share of Life Time common stock.
The complaint alleges that, on April 3, 2015, Defendants filed with the U.S. Securities and Exchange Commission a Proxy Statement recommending the Proposed Acquisition to Company investors which contained material omissions. Among other things, the Proxy Statement failed to sufficiently disclose the interest of the Company’s CEO in the Proposed Acquisition and the fair market value of the Company’s real estate holdings, which make up the bulk of Life Time’s assets. As such, the Proxy Statement omits material information necessary to make the Proxy not misleading to investors attempting to evaluate the financial merits of the Proposed Acquisition.
The class action seeks to enjoin Defendants from proceeding with the Proposed Acquisition until they have complied with the federal securities laws. In the event that the Proposed Acquisition is consummated, the class action seeks to recover damages on behalf of Life Time’s investors.
Plaintiffs filed an amended complaint on August 31, 2015.
On September 30, 2016, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss.
On August 6, 2017, the Court issued an Order granting Defendants' Motion for Judgment on the Pleadings and dismissing this case with prejudice. On September 25, Plaintiffs filed a Motion to vacate the Judgment. On January 30, 2018, the Court issued an Order denying Plaintiffs' Motion to vacate. On February 27, Plaintiffs filed a Notice appealing the District Court's Orders granting Defendants' Motions to Dismiss in part, Motions for Judgment, and denying Plaintiffs' Motion to vacate the Judgment. The Court of Appeals dismissed the appeal in accordance with a joint stipulation from the parties on January 31, 2019.