Tivity Health Officers Escape Derivative Suit Over Client Loss

Current and former officers and directors of Tivity Health Inc. don’t have to face a derivative lawsuit brought by two shareholders related to the loss of one of its biggest clients because no pre-suit demand was given to the company, the Middle District of Tennessee ruled.

Tivity is a fitness benefit program broker that enters into contracts with gym and fitness centers, then offers access to members of health insurance plans. The company’s stock dropped 34%, wiping away over $650 million of market capitalization, when one of its largest customers, United Healthcare, announced that it would begin offering its own ...