LifeMD (LFMD) Faces Lawsuit Over Alleged Concealment of Cost and Refund Woes in Key Segments, According to Hagens Berman

Core Viewpoint - A federal securities fraud class action lawsuit has been filed against LifeMD, Inc. and its executives, alleging that the company misrepresented its financial health and growth prospects, leading to a significant decline in stock price in August 2025 [1][6]. Summary by Relevant Sections Lawsuit Details - The lawsuit, titled Johnston v. LifeMD, Inc., seeks to recover damages for investors who purchased LifeMD securities during the class period from May 7, 2025, to August 5, 2025 [2][8]. Financial Misrepresentation - The lawsuit centers on LifeMD's financial guidance and public statements made after reporting strong Q1 results on May 6, 2025, where the company raised its full-year revenue and adjusted EBITDA guidance, claiming a "category-defining competitive moat" in virtual obesity care and strong performance from its RexMD brand [6][7]. - The complaint alleges that this positive outlook was misleading as the company failed to disclose ongoing business challenges affecting revenue streams, including elevated customer acquisition costs and high patient refund rates [7][9]. Stock Price Impact - The issues came to light on August 5, 2025, when LifeMD announced its second-quarter results, missing revenue and earnings per share estimates, and subsequently slashed its full-year guidance. Following this announcement, LifeMD's stock price dropped by over 44% [7][9]. Investigation and Legal Action - Hagens Berman, a plaintiffs' rights firm, is investigating these claims on behalf of investors who suffered losses during the class period, focusing on when management became aware of the adverse information and whether their failure to disclose misled investors [10][11].