LifeMD Stock Plunges 44% After Lawsuit Alleges Financial Misrepresentation
LifeMD's stock price took a significant hit on August 6, 2025, dropping over 44% following the release of its second-quarter results and a downward revision of its full-year outlook. This decline comes in the wake of a federal securities fraud class action lawsuit filed against the company and its executives, Johnston v. LifeMD, Inc., covering the period from May 7, 2025 to August 5, 2025. The lawsuit alleges that LifeMD presented a misleadingly rosy picture of its financial health and growth, failing to disclose critical business challenges such as rising customer acquisition costs and a higher-than-expected refund rate. Hagens Berman, a national plaintiffs' rights firm, is investigating the claims on behalf of affected investors.
Investors who suffered significant losses are encouraged to submit their losses now, with the lead plaintiff deadline set for October 27, 2025. The firm urges investors to contact them for more information about the LifeMD case and their investigation. Persons with non-public information regarding LifeMD are also encouraged to come forward.
LifeMD's stock price plummeted following the lawsuit and revised guidance. The company and its executives face allegations of misrepresenting its financial health. Investors affected by the alleged misconduct have until October 27, 2025, to submit their claims.
