LifeMD(US:LFMD) Prnewswireยท2025-10-14 14:26Core 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 [1][4]. Summary by Sections Lawsuit Details - The lawsuit, titled Johnston v. LifeMD, Inc., focuses on 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 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 alleged deception became apparent on August 5, 2025, when it reported second-quarter results that 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 announcement, LifeMD's stock price dropped by over 44% the next day, reflecting investor reaction to the disclosed operational issues [4]. Investor Recovery Opportunity - The lawsuit provides an opportunity for investors who suffered substantial losses during the specified period to seek recovery of damages [5]. - Hagens Berman, the firm investigating these claims, is looking into whether LifeMD was aware of but failed to disclose key operational problems [6].