Securities Law

Tivity Health Bid for New Look at Investor Class Approval Denied

July 24, 2020, 2:32 PM

Tivity Health Inc. is stuck facing a certified investor class accusing it of not disclosing its biggest client’s transition to a direct competitor after the Sixth Circuit ruled an interlocutory appeal wasn’t warranted.

The investors won class status over Tivity’s objection in January. Tivity argued that the district judge “applied the wrong legal standard,” but the investors made a “convincing argument” that the lower court’s “view of the evidence"—not its reasoning—"determined the outcome,” the U.S. Court of Appeals for the Sixth Circuit said Thursday.

Tivity argued that it rebutted the presumption of reliance, so the district court “would have denied...

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