Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Tivity Health, Inc. (NasdaqGS: TVTY).
On February 19, 2020, the TIVITY HEALTH INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Investigates the Officers and Directors of Tivity Health.
Inc. – TVTY announced its financial results for the fourth quarter and year ended December 31, 2019, disclosing that its “Nutrition segment had a disappointing end to 2019” including “a non-cash impairment charge of $377.1 million,” that contributed to a $272.8 million net loss in the fourth quarter, due to complications in the nutrition business since its acquisition of Nutrisystem in March 2019, and also that its Chief Executive Officer had resigned. In September of 2020, the Company announced the resignation of co-founder Daniel G. Tully from its Board of Directors.
Then, in October of 2020, it was reported that the Company would be selling Nutrisystem for $575 million, less than half of what Tivity paid to buy it.
The Company and certain of its executives have been sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws, which remains ongoing.
KSF’s investigation is focusing on whether Tivity’s officers and/or directors breached their fiduciary duties to Tivity’s shareholders or otherwise violated state or federal laws.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking to recover investment losses due to corporate fraud and malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.