LifeMD(US:LFMD) Globenewswire·2025-09-12 16:11Core Viewpoint - A federal securities fraud class action lawsuit has been filed against LifeMD, alleging misleading representations regarding its financial health and growth prospects, following a significant stock price decline after its earnings report in August 2025 [1][4]. Summary by Sections Lawsuit Details - The lawsuit, titled Johnston v. LifeMD, Inc., covers the period from May 7, 2025, to August 5, 2025, claiming that LifeMD made false statements, particularly during its first-quarter results announcement on May 6, 2025, when it raised its full-year revenue and adjusted EBITDA guidance [2][4]. - The complaint asserts that LifeMD's optimistic outlook regarding its competitive position in virtual obesity care and performance from its RexMD brand was misleading, as it did not disclose significant operational challenges [2][3]. Financial Performance and Stock Impact - LifeMD's second-quarter results announced on August 5, 2025, missed revenue and earnings per share estimates, leading to a reduction in its full-year guidance. The management attributed this to "temporary elevated customer acquisition costs" and issues with patient refunds [4]. - Following the earnings call, LifeMD's stock price dropped by over 44% the next day, reflecting investor reaction to the disclosed challenges [4]. Investigation and Recovery Opportunities - Hagens Berman, a national plaintiffs' rights firm, is investigating the claims against LifeMD, focusing on whether the company was aware of but failed to disclose key operational issues [6]. - The lawsuit provides an opportunity for investors who suffered significant losses during the specified period to seek recovery of damages [5].