Tivity Health Accused of Violating Securities Law

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Tivity Health, Inc. and three of its senior executives have been accused of violating federal securities law by publishing allegedly misleading statements regarding the outlook of the company’s fitness programs. According to the suit, Tivity specializes in health programs for people over 50 and generates a significant portion of its revenue from its contract with United Healthcare, Inc. The complaint claims the company, in a series of financial reports and press releases, inflated its stock prices by assuring potential investors of the success of its SilverSneakers program – most notably in April 2017 when it announced that it had renewed a three-year contract with United.

The suit argues that the defendants issued these statements despite being aware that United planned to launch a new fitness program targeted towards seniors, representing direct competition to SilverSneakers. Upon United’s November 2017 announcement of the new program, Tivity’s stock price fell 34.24 percent, according to the complaint, injuring stockholders who had relied on the defendants’ allegedly false representations.