Tivity Accused of Downplaying Competitive Risks to its Business

According to the class action complaint against Tivity Health, Inc. (TVTY), despite acknowledging the risk that health plan customers could offer services that compete directly with Tivity's offerings, Tivity officials projected an optimistic outlook for the company in its public filings.  Tivity stated, "We are confident of our long-term opportunity to produce profitable growth and to increase shareholder value."  However, Tivity officials failed to disclose that they were aware of a plan by one of the company's major customers, United Healthcare, to expand its senior fitness benefits program, which would represent direct competition to Tivity's SilverSneakers program.  On November 6, 2017, United Healthcare issued a press release announcing the expansion of its fitness benefits to Medicare Advantage plans in Austin, Texas.  On this news, Tivity's stock fell $16.45 per share, or approximately 34%, to close at $31.60 per share on November 6, 2017.