LifeMD(US:LFMD) Prnewswireยท2025-08-28 12:04Core Viewpoint - A securities fraud class action lawsuit has been filed against LifeMD, Inc. following disappointing Q2 2025 financial results and a reduced outlook, which was raised just three months prior [1][5]. Group 1: Lawsuit Details - The lawsuit seeks to represent investors who purchased LifeMD securities between May 7, 2025, and August 5, 2025 [1]. - The lead plaintiff deadline for the lawsuit is set for October 27, 2025 [3]. - The litigation focuses on LifeMD's statements made on May 6, 2025, when the company reported its Q1 2025 financial results and raised its full-year 2025 revenue and adjusted EBITDA guidance [3]. Group 2: Financial Performance and Guidance - LifeMD raised its guidance in May 2025, citing the creation of a competitive moat in virtual obesity care and strong performance from its RexMD brand [4]. - The company later reported Q2 2025 results that missed consensus estimates, reducing revenue guidance by approximately 6.7% to 7.3% and slashing adjusted EBITDA guidance by about 12% to 13% [5][6]. - The disappointing results were attributed to higher-than-anticipated refund rates and elevated customer acquisition costs in the competitive ED market [6]. Group 3: Investigation and Claims - Hagens Berman, a national shareholders rights firm, has opened an investigation into whether LifeMD violated securities laws [2][7]. - The investigation is focused on whether LifeMD recklessly guided on May 6, 2025, while facing challenges in its weight management and RexMD segments [7]. - The complaint alleges that LifeMD made false and misleading statements and failed to disclose crucial information while insiders sold significant amounts of their shares [4].