LifeMD Faces Class Action Lawsuit Over Alleged Misleading Financial Statements
In a striking development for investors, LifeMD, a telehealth firm traded on NASDAQ under the symbol LFMD, is under fire from a federal securities fraud class action lawsuit. The suit, filed by Hagens Berman Sobol Shapiro LLP in the Eastern District of New York, comes in the wake of substantial stock price declines following disappointing earnings reports. The lawsuit alleges that LifeMD and its executives provided investors with a misleading depiction of the company's financial health and growth prospects during a critical reporting period that spanned from May 7 to August 5, 2025.
The lawsuit traces its roots to May 6, 2025, when LifeMD announced its first-quarter results and issued optimistic projections regarding full-year revenue and adjusted EBITDA guidance. During this announcement, the executives touted the company's 'category-defining competitive moat' in virtual obesity care and highlighted strong performance from its RexMD brand. However, the lawsuit claims that this optimism was unfounded, as LifeMD allegedly failed to disclose significant operational challenges it was experiencing, particularly rising customer acquisition costs and a higher-than-expected refund rate in its weight management business.
Investors began to grasp the extent of the company’s issues after the second-quarter results were released on August 5, 2025. LifeMD not only missed revenue and earnings projections but also slashed its full-year guidance. During the subsequent earnings call, management cited the reasons for these disappointing outcomes, including temporary elevated customer acquisition costs for the RexMD division and ongoing problems with refund rates for its weight management segment. The fallout from this announcement was steep, with LifeMD's stock plummeting more than 44% the following day.
In light of these developments, Hagens Berman is actively encouraging investors who suffered considerable losses during the specified timeframe to take action. The firm is investigating whether LifeMD was aware of these operational issues yet chose not to disclose them to investors. According to Reed Kathrein, a partner at Hagens Berman, 'This lawsuit is an opportunity for investors to recover damages after suffering losses due to the alleged misleading statements made by LifeMD.'
The legal window for filing claims is closing soon, with a lead plaintiff deadline set for October 27, 2025. Investors looking to regain their losses can initiate the process by visiting Hagens Berman's website. The firm also informs potential whistleblowers that those holding non-public information regarding LifeMD may consider options to assist in the investigation. Under the SEC Whistleblower program, these individuals could potentially receive rewards of up to 30% of any successful recovery made by the SEC.
Hagens Berman is recognized for its commitment to corporate accountability and its role in representing investors, whistleblowers, and consumers impacted by corporate misconduct. Having secured over $2.9 billion for its clients, the firm underscores its dedication to delivering true results for those harmed by negligence and deceitful practices. Interested parties are encouraged to reach out and participate in this significant legal proceeding that seeks to hold LifeMD accountable for its actions and misinformation toward investors. For ongoing updates and more information on the lawsuit, investors can follow Hagens Berman on their social media channels and refer to their official communications for real-time news regarding this case.
The lawsuit traces its roots to May 6, 2025, when LifeMD announced its first-quarter results and issued optimistic projections regarding full-year revenue and adjusted EBITDA guidance. During this announcement, the executives touted the company's 'category-defining competitive moat' in virtual obesity care and highlighted strong performance from its RexMD brand. However, the lawsuit claims that this optimism was unfounded, as LifeMD allegedly failed to disclose significant operational challenges it was experiencing, particularly rising customer acquisition costs and a higher-than-expected refund rate in its weight management business.
Investors began to grasp the extent of the company’s issues after the second-quarter results were released on August 5, 2025. LifeMD not only missed revenue and earnings projections but also slashed its full-year guidance. During the subsequent earnings call, management cited the reasons for these disappointing outcomes, including temporary elevated customer acquisition costs for the RexMD division and ongoing problems with refund rates for its weight management segment. The fallout from this announcement was steep, with LifeMD's stock plummeting more than 44% the following day.
In light of these developments, Hagens Berman is actively encouraging investors who suffered considerable losses during the specified timeframe to take action. The firm is investigating whether LifeMD was aware of these operational issues yet chose not to disclose them to investors. According to Reed Kathrein, a partner at Hagens Berman, 'This lawsuit is an opportunity for investors to recover damages after suffering losses due to the alleged misleading statements made by LifeMD.'
The legal window for filing claims is closing soon, with a lead plaintiff deadline set for October 27, 2025. Investors looking to regain their losses can initiate the process by visiting Hagens Berman's website. The firm also informs potential whistleblowers that those holding non-public information regarding LifeMD may consider options to assist in the investigation. Under the SEC Whistleblower program, these individuals could potentially receive rewards of up to 30% of any successful recovery made by the SEC.
Hagens Berman is recognized for its commitment to corporate accountability and its role in representing investors, whistleblowers, and consumers impacted by corporate misconduct. Having secured over $2.9 billion for its clients, the firm underscores its dedication to delivering true results for those harmed by negligence and deceitful practices. Interested parties are encouraged to reach out and participate in this significant legal proceeding that seeks to hold LifeMD accountable for its actions and misinformation toward investors. For ongoing updates and more information on the lawsuit, investors can follow Hagens Berman on their social media channels and refer to their official communications for real-time news regarding this case.
Topics Financial Services & Investing）
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