Tivity Health Can’t Run From UHC Competition Securities Suit

Tivity Health Inc. must face a securities suit accusing it of not disclosing that one of its biggest customers had become a competitor, a federal judge said March 18.

The health services firm warned investors that United Healthcare Inc. provided a lot of its revenue and that some customers might eventually compete with its program offerings, the U.S. District Court for the Middle District of Tennessee said. But it didn’t alert investors when UHC launched a competing program, the opinion said.

Tivity contracts with fitness centers to provide fitness program access to customers of Medicare health plans. UHC made ...