Berger Montague Investigates Securities Fraud Class Action Claims Against Tivity Health, Inc. (NASDAQ: TVTY); Lead Plaintiff Deadline is April 27, 2020
PHILADELPHIA, April 9, 2020 /PRNewswire/ -- Berger Montague is investigating securities fraud claims against Tivity Health, Inc. ("Tivity" or the "Company") on behalf of all purchasers of Tivity common stock (NASDAQ: TVTY) between March 8, 2019 and February 19, 2020 (the "Class Period").
If you purchased Tivity shares, have information, would like to discuss this investigation, or have any questions concerning your rights or interests, please contact our attorneys Michael Dell'Angelo, Esq. at (215) 875-3080 or Andrew Abramowitz, Esq. at (215) 875-3015, or visit www.bergermontague.com/tivity.
On March 8, 2019, Tivity announced the completion of its acquisition of Nutrisystem, Inc. ("Nutrisystem") for approximately $1.3 billion in cash and stock. Tivity assured investors that "[w]ith this acquisition, Tivity Health will be unique in offering, at scale, an integrated portfolio of fitness, nutrition and social engagement solutions to support overall health and wellness." The release further described the benefits of the Nutrisystem acquisition, including "double digit accretion to Tivity Health's adjusted EPS in 2020 and beyond, . . . [s]ignificant potential for value creation with expected annual cost synergies of ~$30-35 million . . . [and] [n]ew business model with projected substantial cash flow to de-lever the balance sheet."
According to the complaint, Tivity's representations regarding the Nutrisystem acquisition were false or misleading in that they failed to disclose that Tivity's Nutrition segment faced significant operational challenges that would foreseeably have a significant impact on Tivity's revenues.
On February 19, 2020, post-market, Tivity issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2019. Tivity disclosed, among other things, 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 Tivity of $272.8 million in the fourth quarter. Tivity also announced the resignation of its CEO.
On this news, Tivity's stock price fell $10.43 per share, or 45.49%, to close at $12.50 per share on February 20, 2020.
If you purchased Tivity common stock during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is April 27, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Tivity Health, Inc. should consider their options to help Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of successful recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.
Contacts
Michael Dell'Angelo, Managing Shareholder
Berger Montague
(215) 875-3080
[email protected]
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
SOURCE Berger Montague
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