LifeMD (LFMD) Sued for Allegedly Misleading Investors on Growth Guidance, 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, 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., covers the period from May 7, 2025, to August 5, 2025, and seeks to recover damages for investors who incurred substantial losses during this timeframe [2][8]. Financial Performance and Allegations - On May 6, 2025, LifeMD reported strong first-quarter results and 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 [5]. - The lawsuit argues that this optimistic outlook was misleading due to undisclosed ongoing business challenges, including rising customer acquisition costs and high patient refund rates [6][9]. Stock Price Impact - Following the announcement of disappointing second-quarter results on August 5, 2025, which included missed revenue and earnings estimates and a reduction in full-year guidance, LifeMD's stock price fell by over 44% the next day [7][6]. Investigation and Whistleblower Information - Hagens Berman, a national plaintiffs' rights firm, is investigating the claims on behalf of affected investors, focusing on whether LifeMD's management accurately represented its financial guidance amid rising costs and refund issues [10][11]. - Whistleblowers with non-public information regarding LifeMD are encouraged to assist in the investigation, with potential rewards under the SEC Whistleblower program [11].