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TVTY.US
id: 1606

Tivity Health (TVTY) Investor Settlement

Late claims are being considered for compensation, subject to approval.
$17,050,000
Cash Settlement
M.D. Tennessee
Court
3:20-cv-00165
Case number
03/08/2019
Class period Start
02/19/2020
Class period End
10/20/2025
Claim deadline
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.

Timeline

  • 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.

Background


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.


What Can Investors Expect Now?


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.
Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.7
Filing date
02/25/2020
Plaintiffs
ROBERT STROUGO
Attorneys
Robbins Geller Rudman & Dowd LLP
Defendants
Donato Tramuto; Adam Holland; Tommy Lewis
Administrator
Verita Global
Court hearing date
11/12/2025
Objection deadline
10/22/2025
Attorney fee
$6,262,500
Trades matching type
FIFO

Frequently Asked Questions

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