A Tennessee Middle District judge approved a plaintiff’s motion for class action certification Wednesday in an opinion regarding Tivity Health Inc.’s common stock.
Tivity Health Inc. is a health and fitness corporation; hoping to expand their products into dieting, Tivity acquired Nutrisystem in March 2019. The complaint filed against Tivity alleges that the corporation deceived investors about Nutrisystem’s performance in the beginning of 2019.
According to the consolidated complaint cited within the opinion, the defendant misstated financial statistics about Nutrisystem’s performance, as well as, refused to disclose a large financial loss.
The plaintiffs sought to certify a class of the following: anyone who purchased Tivity Common Stock between March 2019 and February 2020, excluding anyone whom the defendant has controlling interest over. The court found that the class action is the superior method for fairly adjudicating the issue.
The plaintiff is represented by Robbins Geller Rudman & Dowd LLP.