SAN FRANCISCO, Oct. 13, 2025 (GLOBE NEWSWIRE) — A new federal securities fraud class action lawsuit has been filed against LifeMD, Inc. (NASDAQ: LFMD) and its executives. The suit alleges the telehealth company presented a misleadingly optimistic picture of its financial health and growth, ultimately resulting in a dramatic stock price decline in August. The action was filed in the Eastern District of New York.
The lawsuit, Johnston v. LifeMD, Inc., focuses on the period between May 7, 2025, and August 5, 2025, and is seeking to recover damages for investors who suffered substantial losses
Video: https://youtu.be/OblmtkFsKsI
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
- Contact the Firm Now:
Allegations: Optimistic Guidance Unraveled by Internal Issues:
The complaint highlights a pivotal moment on May 6, 2025, when LifeMD reported strong first-quarter results and raised its full-year revenue and adjusted EBITDA guidance. The company touted a “category-defining competitive moat” in virtual obesity care and strong performance from its RexMD brand.
However, the lawsuit contends that this optimistic outlook was misleading because the company allegedly failed to disclose critical, ongoing business challenges, including:
- Rising Customer Acquisition Costs (RexMD): The company was reportedly experiencing a surge in costs to acquire new customers in its RexMD segment.
- Higher-Than-Anticipated Refund Rate: There was a higher-than-expected rate of patient refunds in its weight management business.
The alleged deception unraveled on August 5, 2025, when LifeMD announced its second-quarter results, missing revenue and earnings estimates and subsequently slashing its full-year guidance. During the earnings call, management cited the very issues the lawsuit alleges were previously concealed: “temporary elevated customer acquisition costs” for RexMD and problems with patient refunds for its weight management offerings.
The following day, LifeMD’s stock price plummeted by over 44%.
Hagens Berman’s Investigation
Hagens Berman, a national plaintiffs’ rights firm, is actively investigating these claims on behalf of damaged investors.
“The core issue here is whether LifeMD’s management provided an accurate foundation for its bullish financial guidance,” said Reed Kathrein, the Hagens Berman partner leading the investigation. “We are investigating if the company knew about the severe impact of rising customer acquisition costs and refund issues on its key revenue streams, yet chose to conceal these facts to artificially inflate its stock price.”
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 [email protected].
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.
Contact:
Reed Kathrein, 844-916-0895
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