A securities fraud class action lawsuit has been filed against LifeMD, Inc. (LFMD), alleging the company made misleading statements to investors. The lawsuit, Johnston v. LifeMD, Inc., et al., covers investors who purchased LifeMD securities between May 7, 2025, and August 5, 2025.
The complaint stems from LifeMD’s second-quarter 2025 financial results, which fell short of expectations. The company significantly lowered its revenue and adjusted EBITDA guidance, a sharp contrast to its more optimistic outlook just three months prior. This news caused a substantial drop in LifeMD’s stock price.
The lawsuit focuses on LifeMD’s statements made in May 2025, when it reported first-quarter results and raised its full-year guidance. At that time, the company highlighted its market position and the strong performance of its RexMD brand. The lawsuit alleges that these statements were misleading and omitted crucial information.
Specifically, the suit claims LifeMD overstated its competitive advantage and was reckless in raising its guidance. The complaint contends the company failed to account for increasing customer acquisition costs in its RexMD segment and costs associated with the sale of obesity treatment drugs.
The August 5, 2025, announcement of the disappointing Q2 results revealed higher-than-anticipated refund rates due to patient insurance coverage issues and affordability concerns. LifeMD also acknowledged challenges in the competitive erectile dysfunction market, impacting RexMD’s performance.
Hagens Berman, a prominent shareholder rights firm, is conducting an independent investigation into these claims. A Hagens Berman partner stated that the firm is examining whether LifeMD acted recklessly in providing its May 2025 guidance, given the emerging challenges with refund rates and acquisition costs. The firm is encouraging investors who suffered losses to come forward.
The lead plaintiff deadline for the class action is October 27, 2025. Hagens Berman is also encouraging individuals with relevant knowledge to contact its attorneys. The firm highlights the SEC Whistleblower program, offering rewards for original information leading to successful recovery.
Hagens Berman is a global plaintiffs’ rights firm concentrating on corporate accountability, representing investors, whistleblowers, and others in cases involving corporate negligence.
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