SAN DIEGO & FRANKLIN, Tenn.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Tivity Health, Inc. (NasdaqGS: TVTY). The complaint is brought on behalf of all purchasers of Tivity securities between February 24, 2017 and November 3, 2017, for alleged violations of the Securities Exchange Act of 1934 by Tivity's officers and directors. Tivity provides fitness and health improvement programs to people aged 50 and older in the United States.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/shareholders-rights-blog/tivity-health-inc/
Tivity Accused of Downplaying Competitive Risks to its Business
According to the complaint, despite acknowledging the risk that health plan customers could offer services that compete directly with Tivity's offerings, Tivity officials projected an optimistic outlook for the company in its public filings. Tivity stated, "We are confident of our long-term opportunity to produce profitable growth and to increase shareholder value." However, Tivity officials failed to disclose that they were aware of a plan by one of the company's major customers, United Healthcare, to expand its senior fitness benefits program, which would represent direct competition to Tivity's SilverSneakers program. On November 6, 2017, United Healthcare issued a press release announcing the expansion of its fitness benefits to Medicare Advantage plans in Austin, Texas. On this news, Tivity's stock fell $16.45 per share, or approximately 34%, to close at $31.60 per share on November 6, 2017.
Tivity Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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