SAN FRANCISCO, Sept. 9, 2025 /PRNewswire/ -- A new federal securities fraud class action lawsuit has been filed against LifeMD (NASDAQ:LFMD), alleging that the telehealth company and its executives provided investors with a misleading picture of its financial health and growth prospects. The suit, filed in in the Eastern District of New York, comes after a dramatic stock price decline in August following the company's earnings report.
The firm urges investors in LifeMD who suffered significant losses to submit your losses now.
Class Period: May 7, 2025 – Aug. 5, 2025
Lead Plaintiff Deadline: Oct. 27, 2025
Visit: www.hbsslaw.com/investor-fraud/lfmd
Contact the Firm Now: LFMD@hbsslaw.com
844-916-0895
LifeMD, Inc. (LFMD) Securities Class Action:
The lawsuit, captioned Johnston v. LifeMD, Inc., focuses on the period between May 7 and August 5, 2025. It alleges that LifeMD made false and misleading statements, particularly on May 6, 2025, when it reported its first-quarter results and raised its full-year revenue and adjusted EBITDA guidance. The complaint claims that the company's optimistic outlook, which cited a "category-defining competitive moat" in virtual obesity care and strong performance from its RexMD brand, was false as it misleadingly failed to account for crucial business challenges.
The suit contends that LifeMD was experiencing rising customer acquisition costs in its RexMD segment and a higher-than-anticipated refund rate in its weight management business, issues that it did not disclose to investors at the time.
The alleged deception unraveled on August 5, 2025, when LifeMD announced its second-quarter results, missing revenue and earnings per share estimates and subsequently slashing its full-year guidance. During the earnings call, management cited "temporary elevated customer acquisition costs" for its RexMD business and issues with patient refunds for its weight management offerings. The following day, LifeMD's stock price plummeted by over 44%.
For investors who suffered substantial losses during this period, the lawsuit represents an opportunity to recover damages.
Hagens Berman's Investigation
Hagens Berman, a national plaintiffs' rights firm, is investigating these claims.
"We're investigating whether LifeMD knew of but failed to disclose key operational problems," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in LifeMD and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the LifeMD case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding LifeMD should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LFMD@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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SOURCE Hagens Berman Sobol Shapiro LLP
