According to the Complaint, Tivity Health, Inc. provides fitness and health improvement programs in the United States. The Company was formerly known as Healthways, Inc. and changed its name to Tivity Health, Inc. in January 2017.
In December 2018, Tivity announced that it would acquire Nutrisystem, Inc., a provider of weight management products and services. On March 8, 2019, Tivity announced the completion of the Nutrisystem Acquisition for approximately $1.3 billion in cash and stock.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) following the Nutrisystem Acquisition, Tivity’s Nutrition segment faced significant operational challenges; (ii) the foregoing would foreseeably have a significant impact on Tivity’s revenues; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 18, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on November 13.