Tivity Investors Win Class Status in Nutrisystem Merger Case

Tivity Health Inc. investors who say the company “painted a deceitfully rosy picture” following its 2019 acquisition of Nutrisystem Inc. won a federal judge in Tennessee’s permission to pursue their securities claims as a class.

Investors accuse the wellness-program operator of misleading them about the post-merger nutrition segment’s performance. The newly certified class consists of investors who acquired Tivity’s common stock from March 8, 2019, through Feb. 19, 2020, the US District Court for the Middle District of Tennessee said.

The investor class excludes those with certain close ties to the company, Chief Judge Waverly D. Crenshaw Jr.'s memorandum ...