LifeMD (LFMD) Faces Lawsuit Over Alleged Concealment of Cost and Refund Woes in Key Segments, According to Hagens Berman

SAN FRANCISCO, Oct. 01, 2025 (GLOBE NEWSWIRE) -- A federal securities fraud class action lawsuit has been filed in the Eastern District of New York against LifeMD, Inc. (NASDAQ: LFMD) and its executives. The lawsuit alleges that the telehealth company presented a misleadingly optimistic image of its financial health and growth prospects, which ultimately led to a dramatic stock price decline in August.

The suit, Johnston v. LifeMD, Inc., is seeking to recover damages for investors that purchased LifeMD securities during the alleged class period of May 7, 2025, through August 5, 2025.

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:
  • Phone: 844-916-0895
  • Email: LFMD@hbsslaw.com
  • Website Form: www.hbsslaw.com/investor-fraud/lfmd

LifeMD Alleged to Concealed Financial Headwinds:

The core of the lawsuit centers on LifeMD's financial guidance and public statements made after reporting strong Q1 results on May 6, 2025, when the company raised its full-year revenue and adjusted EBITDA guidance. LifeMD touted a "category-defining competitive moat" in virtual obesity care and strong performance from its RexMD brand.

But the complaint contends that this positive outlook was false and misleading because the company allegedly failed to disclose critical, ongoing business challenges impacting its revenue streams, including:

• Soaring Customer Acquisition Costs: A surge in costs to acquire new customers in its RexMD segment was reportedly being experienced by the company.
• Undisclosed Refund Rate: A higher-than-expected rate of patient refunds in its weight management business was a crucial issue not disclosed to investors.

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 acknowledged the very issues the lawsuit claims were previously concealed: “temporary elevated customer acquisition costs” for RexMD and problems with patient refunds. The following day, LifeMD’s stock price plummeted by over 44%.

Hagens Berman’s Investigation

Hagens Berman, a global plaintiffs’ rights firm, is actively investigating these claims on behalf of investors who suffered losses on their LifeMD investments during the class period.

“The lawsuit alleges LifeMD actively concealed adverse financial trends, namely the surging customer acquisition costs and high refund rates, only to have them surface the following quarter,” said Reed Kathrein, the Hagens Berman partner leading the investigation. “We are focused on determining when management knew of this adverse information and whether their alleged failure to disclose it misled investors about the true stability and profitability of their key segments.”

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. 

Contact:
Reed Kathrein, 844-916-0895

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d321dc8b-3794-4095-9932-88ae1ed9d355

A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/88cf3b0f-f3ab-48ae-9cad-f327147837af

LifeMD, Inc. (LFMD) Securities Fraud Class Action

Hagens Berman Highlights Lawsuit Targeting LifeMD (LFMD) Over Alleged Misleading Statements

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