LifeMD, Inc. (LFMD) Hit With Securities Class Action After Shares Crash 44% On Q2 2025 Earnings Surprise, Problems With Obesity Care and RexMD -- Hagens Berman

SAN FRANCISCO, Aug. 27, 2025 (GLOBE NEWSWIRE) -- A securities fraud class action lawsuit styled Johnston v. LifeMD, Inc., et al., No. 1:25-cv-04761 (E.D.N.Y) has been filed and seeks to represent LifeMD (NASDAQ: LFMD) investors who purchased or otherwise acquired LifeMD securities between May 7, 2025 and August 5, 2025.

The lawsuit comes after LifeMD reported disappointing Q2 2025 financial results and reduced its outlook which it raised just three months earlier.

The company’s earnings disclosures have prompted national shareholders rights firm Hagens Berman to open an investigation into whether LifeMD may have violated the securities laws.

The firm urges investors in LifeMD who suffered significant losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Class Period: May 7, 2025 – Aug. 5, 2025
Lead Plaintiff Deadline: Oct. 27, 2025
Visit: www.hbsslaw.com/investor-fraud/lfmd
Contact the Firm Now: LFMD@hbsslaw.com
844-916-0895

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.

Hagens Berman’s Investigation

Hagens Berman, a prominent shareholder rights firm, is investigating these claims.

“We’re 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,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

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 

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