San Diego, CA -- (SBWIRE) -- 03/20/2020 -- An investor, who purchased shares of Tivity Health, Inc. (NASDAQ: TVTY), filed a lawsuit over alleged violations of Federal Securities Laws by Tivity Health, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Tivity Health, Inc. (NASDAQ: TVTY) should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Franklin, TN based Tivity Health, Inc. provides fitness and health improvement programs in the United States. Tivity Health, Inc. was formerly known as Healthways, Inc. and changed its name to Tivity Health, Inc. in January 2017. In December 2018, Tivity Health, Inc. announced that it would acquire Nutrisystem, Inc. ("Nutrisystem"), a provider of weight management products and services (the "Nutrisystem Acquisition").

On March 8, 2019, Tivity Health, Inc. issued a press release entitled "Tivity Health Completes Acquisition of Nutrisystem." In the press release, Tivity Health, Inc. announced the completion of the Nutrisystem Acquisition for approximately $1.3 billion in cash and stock. Tivity Health, Inc. also 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."

On May 8, 2019, Tivity Health, Inc announced its financial results for the quarter ended March 31, 2019 and therein represented that the integration of Nutrisystem into Tivity's operations was "on track."

On February 19, 2020, after the market closed, Tivity Health, Inc. announced its fourth quarter and full year 2019 financial results in a press release. Therein, the Company reported a fourth quarter net loss of $323.1 million, a $137.1 million charge to goodwill and $240.0 million impairment charge to the Nutrisystem tradename. Tivity Health, Inc. also announced that its Chief Executive Officer Donato Tramuto had resigned. Tivity Health, Inc. 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. Concurrently, Tivity announced the resignation of its CEO, Donato Tramuto. Discussing Tivity's financial results on an earnings call later that day, Tivity's interim CEO, Robert Greczyn, stated "[a]dmittedly, the nutrition business has not worked out as well as planned since the completion of the [Nutrisystem Acquisition] in March 2019."

Shares of Tivity Health, Inc. (NASDAQ: TVTY) declined from $26.07 per share on January 17, 2020 to a slow as $12.01 per share on February 20, 2020.

The plaintiff claims that between March 8, 2019 and February 19, 2020, the defendants made false and/or misleading statements and/or failed to disclose that following the Nutrisystem Acquisition, Tivity's Nutrition segment faced significant operational challenges, that the foregoing would foreseeably have a significant impact on Tivity's revenues, and that as a result, Tivity's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Tivity Health, Inc. (NASDAQ: TVTY) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.