
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]. 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]. - The complaint asserts that LifeMD's optimistic outlook, which highlighted a "category-defining competitive moat" in virtual obesity care and strong performance from its RexMD brand, was misleading as it did not disclose significant operational challenges [2]. Operational Challenges - The lawsuit contends that LifeMD faced increasing 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 [3]. Stock Price Impact - The alleged misleading information came to light on August 5, 2025, when LifeMD 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 refund issues, resulting in a stock price drop of over 44% the following day [4]. Investor Recovery - For investors who incurred significant losses during the specified period, the lawsuit presents an opportunity for potential recovery of damages [5].