NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tivity Health, Inc. (“Tivity” or the “Company”) (NASDAQ:TVIY) of the April 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Tivity stock or options between March 8, 2019 and February 19, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/TVTY. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of all those who purchased Tivity securities between March 8, 2019 and February 19, 2020 (the “Class Period”). The case, Strougo v. Tivity Health, Inc. et al., No. 3:20-cv-00165 was filed on February 25, 2020, and has been assigned to Judge Waverly D. Crenshaw, Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) following the Nutrisystem Acquisition, Tivity’s Nutrition segment faced significant operational challenges; (2) the foregoing would foreseeably have a significant impact on Tivity’s revenues; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 19, 2020, Tivity issued a press release announcing the Company’s financial results for the fourth quarter and year ended December 31, 2019. Tivity disclosed, inter alia, 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 from $22.93 per share on February 20, 2020 to $12.50 per share on February 21, 2020: a $10.43 or 45.49% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Tivity’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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