Core Insights - LifeMD, Inc. has sold its majority ownership interest in WorkSimpli Software LLC for an enterprise value of approximately $65 million, marking a strategic shift towards focusing on virtual healthcare and pharmacy services [1][4] - The transaction closed on November 4, 2025, with LifeMD receiving about $22 million in cash at closing, which is 91.6% of the base purchase price for the 80% interest sold [2][3] Financial Details - LifeMD is eligible to receive up to an additional $28 million in cash based on WorkSimpli achieving specific growth and operational targets over the next three years [3] - The initial investment by LifeMD in WorkSimpli was approximately $1.25 million, with a 73.3% ownership prior to the sale [4] Strategic Focus - Following the divestiture, LifeMD will concentrate on expanding its virtual care and pharmacy offerings, particularly in areas such as weight management, women's health, behavioral health, urgent care, and primary care [5] - LifeMD plans to broaden its platform into more complex cardiometabolic care offerings starting in the first half of 2026 [5] Leadership Commentary - LifeMD's CEO emphasized that the divestiture allows the company to sharpen its focus on building a comprehensive virtual care technology platform [4] - WorkSimpli's CEO expressed excitement about the independence gained from the transaction, which will enable further investment in their products and services [5]

Core Viewpoint - LifeMD, Inc. is facing a class action lawsuit due to alleged securities fraud, with a significant stock price drop following the company's revision of its revenue and EBITDA guidance for 2025 [2][3]. Group 1: Company Performance - On August 5, 2025, LifeMD announced a revision of its full-year 2025 guidance for revenue and adjusted EBITDA due to temporary challenges in its Rex MD business [2]. - Following this announcement, LifeMD's stock price fell by $5.31, or 44.8%, closing at $6.53 per share on August 6, 2025 [2]. Group 2: Allegations in the Lawsuit - The class action complaint alleges that LifeMD's management made materially false and misleading statements regarding the company's business and operations during the class period [3]. - Specific allegations include that the management overstated LifeMD's competitive position and failed to account for rising customer acquisition costs in its RexMD segment [3]. - The lawsuit claims that positive statements made by the management lacked a reasonable basis and were materially misleading [3]. Group 3: Legal Proceedings - Investors who purchased LifeMD securities during the class period are encouraged to file a lead plaintiff motion by October 27, 2025 [4]. - The law firm Glancy Prongay & Murray LLP is leading the class action and is available for inquiries regarding participation [5][6].