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

Key Takeaways:

• A securities fraud class action lawsuit was filed against LifeMD in the Eastern District of New York.
• LifeMD’s share price fell 44% following its Q2 2025 earnings report.
• The company initially raised guidance in May 2025 but reduced it in August 2025.
• Hagens Berman is investigating possible violations of securities laws.
• Investors who purchased LifeMD shares between May 7 and August 5, 2025, are covered by the litigation.

Overview

LifeMD, Inc. (NASDAQ: LFMD) has been named in a securities fraud class action lawsuit in the Eastern District of New York. The filing follows the healthcare company’s Q2 2025 financial results, which fell short of expectations and triggered a sharp reduction in the company’s full-year outlook.

Background and Timeline

In May 2025, LifeMD reported its Q1 2025 results and raised its full-year 2025 revenue and adjusted EBITDA guidance. This revision was largely attributed to the company’s confidence in its “category-defining competitive moat in virtual obesity care” and strong performance from its RexMD brand. However, by August 2025, LifeMD announced disappointing second-quarter results, causing shares to drop 44%.

Allegations

The lawsuit, styled Johnston v. LifeMD, Inc., et al., No. 1:25-cv-04761 (E.D.N.Y), alleges that LifeMD may have misled investors by presenting overly optimistic financial projections and statements. Investors who purchased or otherwise acquired the company’s securities between May 7, 2025, and August 5, 2025, are included in the class period. The crux of the claim focuses on whether the company’s raised guidance in May accurately reflected its operational realities and challenges.

Impact on Shareholders

A central factor in the lawsuit is the 44% drop in LifeMD’s share price following the Q2 disclosures. Investors argue this dramatic decline resulted directly from the company’s revised outlook, which contradicted assurances given just three months before. The case seeks to determine if LifeMD’s earlier statements about its obesity care initiatives and RexMD brand next steps were misleading or lacking critical details.

Legal Investigation

National shareholder rights firm Hagens Berman has launched an investigation to gather information about LifeMD’s public statements during the relevant periods. The firm is encouraging individuals with knowledge of the situation to come forward. Additionally, the lead plaintiff deadline for the class action is set for October 27, 2025, offering potential claimants a window to pursue legal remedies.

Conclusion

The future of LifeMD hinges on the outcome of this emerging legal battle. With the class action lawsuit now underway, both the company and investors are closely monitoring further developments. LifeMD’s reputation in the rapidly transforming telehealth industry will likely be affected by how the company reconciles its previous statements with the realities of its Q2 2025 performance.