Shiva Stein, a shareholder of Tivity Health Inc., filed a complaint against the company and its board of directors alleging the defendants violated the Securities Exchange Act. According to the complaint, the defendants filed and disseminated a materially incomplete and misleading Proxy Statement which encourages shareholders to vote in favor of the proposed merger of Titan-Merger Sub Inc. into Tivity Health Inc.
Stein has filed a number of other securities suits recently.
The allegedly materially incomplete and misleading information referenced are analyses performed by the defendant’s financial advisor. It is imperative that companies disseminate truthful information to their shareholders so that shareholders can properly exercise their corporate suffrage rights, the plaintiff argued.
The plaintiff seeks to enjoin the defendant from engaging in the proposed merger until the incorrect information in the Proxy Statement is corrected; in the event that the proposed merger is completed, the plaintiff seeks recompense for damages caused by the defendant’s alleged violation of the Securities Exchange Act.
The plaintiff is represented by Melwani & Chan LLP.
