LifeMD, Inc. (LFMD) Securities Class Action

The litigation is focused on the propriety of LifeMD’s statements on May 6, 2025, when the company reported its Q1 2025 financial results and raised its full year 2025 revenue and adjusted EBITDA guidance.

Among the reasons for the guidance raise, LifeMD said that it “created a category-defining competitive moat in virtual obesity care” and “[o]ur RexMD brand continues to perform exceptionally well, with consistent growth in both revenue and active patient count.” During the earnings call that day, LifeMD management also touted its collaborations with LillyDirect and NovoCare to improve access to obesity care patients without insurance coverage and assured investors that it “takes a relatively conservative view to revenue.”

The complaint alleges that LifeMD made false and misleading statements while failing to disclose crucial information to investors while insiders sold significant amounts of their LifeMD shares. More specifically, the complaint claims that LifeMD (1) materially overstated its competitive position and (2) was reckless in raising its 2025 guidance, because that it did not consider rising customer acquisition costs in its RexMD segment and costs related to the sale of drugs intended to treat obesity.

Investors learned the truth on August 5, 2025, when LifeMD surprised investors with its Q2 2025 financial results, missing consensus GAAP EPS and revenue consensus estimates, reduced revenue guidance given in May 2025 by about 6.7% and 7.3% on the low- and high-ends, respectively, and slashed its adjusted EBITDA guidance (also given in May) by about 13% and 12% on the low- and high-ends, respectively.

During the earnings call that day, management noted that the company’s weight management “has been impacted by a higher than anticipated refund rate, driven by patients either lacking insurance coverage for their medications or being unable to afford the out-of-pocket cost of branded therapies.”

Perhaps more seriously, as to RexMD, LifeMD said “we experienced a challenging second quarter, primarily due to temporary elevated customer acquisition costs in the highly competitive ED market.”

This news drove the price of LifeMD shares crashing $5.31 (-44%) on August 6, 2025.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LFMD investigation about?

We are investigating whether LifeMD may have recklessly guided on May 6, 2025, while its weight management was experiencing higher refund rates and RexMD was experiencing elevated acquisition costs.

WHAT SHOULD I DO?

I worked at LFMD. What should I do?

If you were an employee of LFMD, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LFMD, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LFMD investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.