1. Class action lawsuit filed against LifeMD for securities fraud. 2. Investors allege misleading statements during May to August 2025. 3. LifeMD's stock plummeted by 44.8% following revised 2025 guidance. 4. Company reported temporary challenges and overstated competitive position. 5. Investors have until October 27, 2025, to file claims.
The stock plummeted 44.8%, indicating severe loss of investor confidence, reminiscent of past securities fraud cases.
The lawsuit addresses significant operational issues, affecting future performance forecasts and investor trust.
The immediate effects of the lawsuit likely influence trading behavior in the short term, similar to other class action impacts seen historically.
The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased LifeMD, Inc. ("LifeMD" or the "Company") (NASDAQ: LFMD) securities between May 7, 2025 and August 5, 2025, inclusive (the "Class Period"). LifeMD investors have until October 27, 2025 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR LIFEMD, INC. (LFMD), INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On August 5, 2025, after market hours, LifeMD disclosed that due to "some temporary challenges facing [its] Rex MD business," the Company was "revising [its] full year 2025 guidance for revenue and adjusted EBITDA to reflect the full-year impact of these issues[.]"
On this news, LifeMD's stock price fell $5.31, or 44.8%, to close at $6.53 per share on August 6, 2025, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendants materially overstated LifeMD's competitive position; (2) Defendants were reckless in raising LifeMD's 2025 guidance, considering that they had not properly accounted for rising customer acquisition costs in LifeMD's RexMD segment, as well as for customer acquisition costs related to the sale of drugs designed to treat obesity, including Wegovy and Zepbound; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased LifeMD securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250903377090/en/
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com