PHILADELPHIA, April 27, 2020 /PRNewswire/ -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Tivity Health, Inc. ("Tivity" or the "Company") (NASDAQ: TVTY) on behalf of investors who purchased or acquired shares of Tivity's common stock between March 8, 2019 and February 19, 2020, inclusive.
On March 8, 2019, Tivity announced that it had completed an acquisition of Nutrisystem, Inc. ("Nutrisystem") for approximately $1.3 billion in cash and stock. In connection with the acquisition, Nutrisystem shareholders received $38.75 per share in cash, and 0.2141 shares of Tivity common stock, for each share of Nutrisystem common stock.
As detailed in the complaint, approximately one year after completing the Nutrisystem acquisition Tivity reported its fiscal 2019 financial and operational results, and disclosed 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." Additionally, during a conference call to discuss the Company's results, Tivity's interim CEO disclosed that "the nutrition business has not worked out as well as planned since the completion of the [Nutrisystem acquisition] in March 2019." Following this news, shares of Tivity's stock fell $10.43 per share, or over 45% in value, to close at $12.50 per share on February 20, 2020.
Tivity stockholders who purchased or acquired shares of the Company's stock on or before March 8, 2019 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740 or (484) 258 – 1585, or by email at [email protected], to discuss this action and their legal rights and options. Additional information may also be found at http://kaskelalaw.com/case/tivity-health-inc/.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
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SOURCE Kaskela Law LLC