Nutrisystem (NTRI) Alert: Johnson Fistel Investigates Proposed Sale of Nutrisystem, Inc. to Tivity Health, Inc.; Are Shareholders Getting a Fair Deal?

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Dec 10, 2018, 07:46 ET

SAN DIEGO, Dec. 10, 2018 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Nutrisystem, Inc. (NASDAQ: NTRI) ("Nutrisystem") breached their fiduciary duties in connection with the proposed sale of the Company to Tivity Health, Inc. (NASDAQ: TVTY) ("Tivity").

On December 10, 2018, Nutrisystem announced that it had signed a definitive merger agreement with Tivity. Under the terms of the merger agreement, Nutrisystem shareholders will receive $38.75 per share in cash and 0.2141 Tivity Health shares for each share of Nutrisystem common stock, representing an implied value to each Nutrisystem shareholder of $47 per share. However, shareholders will be subject to the future price fluctuation of Tivity's stock price.

The investigation concerns whether the Nutrisystem board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Nutrisystem shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given that one Wall Street analyst has a $53.00 price target on the stock, and analysts' projections for future earnings and revenue growth. Additionally, Nutrisystem has over $90 million in cash and no long-term debt. The 52-week high for Nutrisystem was $55.10.

If you are a shareholder of Nutrisystem and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.

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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

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SOURCE Johnson Fistel, LLP