Tivity Health (TVTY) Investor Settlement
Tivity Health has reached a settlement with investors over claims that it misled them about Nutrisystem’s financial health and performance following its $1.3B acquisition.
Outline
In 2018, Tivity acquired Nutrisystem and promoted the deal as a strategic move to create a fitness and nutrition platform. Executives claimed the business was performing well, but internal data showed declining demand and marketing failures. In 2020, Tivity announced a $377 million impairment and fired its CEO. $TVTY fell 45%, and investors later filed a lawsuit.
December 10, 2018 – Tivity announced the $1.3 billion acquisition of Nutrisystem.
August–November 2019 – Executives stated Nutrisystem was “on track,” despite weak sales and internal concerns.
December 4, 2019 – Nutrisystem’s CEO was terminated.
February 19, 2020 – Tivity disclosed a $377 million impairment tied to Nutrisystem; $TVTY fell 45%.
February 25, 2020 – Investors filed a lawsuit over misleading statements tied to the acquisition.
May 2025 – Tivity agreed to a settlement.
Tivity Health, best known for its SilverSneakers fitness program, acquired Nutrisystem in early 2019, aiming to build a combined fitness and nutrition platform. At the time of the deal, Nutrisystem was already struggling. The company had missed growth targets, faced shrinking customer demand, and failed to generate results from new marketing campaigns.
Despite these challenges, Tivity repeatedly assured investors that Nutrisystem was performing well. Internal data showed otherwise, including $8.3 million in operating losses and poor early-year sales. Executives continued to promote positive guidance and did not revise Nutrisystem’s goodwill value.
In February 2020, Tivity disclosed a $377 million impairment related to Nutrisystem and announced the CEO’s departure. The same day, $TVTY dropped 45.49%.
After that, in February 2020, investors sued the company for misrepresenting Nutrisystem’s condition and financial impact.
Tivity Health has reached a settlement with investors over claims that it misled them about Nutrisystem’s financial health and performance following its $1.3B acquisition.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons or entities who purchased or otherwise acquired Tivity Health, Inc. common stock between March 8, 2019 and February 19, 2020, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.70 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.8 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.