Tivity Health Must Face Investor Suit Over Nutrisystem Deal (2)

Tivity Health Inc. investor allegations that the company painted too rosy a picture of its 2019 Nutrisystem Inc. acquisition should be resolved in a trial, a federal judge ruled.

A reasonable juror could find that the wellness company and then-executives “intentionally misconstrued Tivity’s goodwill and Nutrisystem tradename values” to conceal that the $1.3 billion deal wasn’t as beneficial as executives had claimed, Judge Waverly D. Crenshaw Jr. said. The US District Court for the Middle District of Tennessee judge’s opinion also said a jury could plausibly find that Trivity and the executives purposefully misled investors into thinking the acquisition was ...