LifeMD(US:LFMD) Prnewswire·2025-10-21 12:13Core Viewpoint - A federal securities fraud class action lawsuit has been filed against LifeMD, alleging misleading statements regarding its financial health and growth prospects, particularly following a significant stock price decline after its earnings report in August 2025 [1][4]. Summary by Relevant 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, especially on May 6, 2025, when it reported first-quarter results and raised its full-year revenue and adjusted EBITDA guidance [2]. - 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 stock price fell over 44% the day after the company announced its second-quarter results on August 5, 2025, which missed revenue and earnings per share estimates and included a reduction in full-year guidance [4]. - During the earnings call, management attributed the poor performance to "temporary elevated customer acquisition costs" in the RexMD business and issues with patient refunds in its weight management offerings [4]. Investor Actions - Investors who suffered losses during the specified period are encouraged to participate in the lawsuit as a means to recover damages [5]. - Hagens Berman, the law firm leading the investigation, is looking into whether LifeMD was aware of but failed to disclose key operational problems [6].