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Lawsuit Targets Telehealth Firm LifeMD (LFMD) Over Alleged Misleading Statements According to Hagens Berman
LifeMDLifeMD(US:LFMD) Globenewswireยท2025-09-24 23:45

Core 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][7]. Summary by Relevant Sections Lawsuit Details - The lawsuit, titled Johnston v. LifeMD, Inc., covers the period from May 7 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 [5][6]. - 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 [5][6]. Financial Performance and Stock Impact - LifeMD reportedly faced rising customer acquisition costs in its RexMD segment and a higher-than-expected refund rate in its weight management business, which were not disclosed to investors [6]. - The situation escalated on August 5, 2025, when LifeMD announced second-quarter results that missed revenue and earnings per share estimates, leading to a drastic reduction in its full-year guidance. Following this announcement, the company's stock price dropped by over 44% [7]. Investor Actions - The lawsuit provides an opportunity for investors who incurred substantial losses during the specified period to seek recovery [8]. - Hagens Berman, the law firm investigating the claims, is looking into whether LifeMD was aware of but failed to disclose key operational issues [10].