LifeMD, Inc. (LFMD) Securities Class Action Lawsuit Update [October 9, 2025]

Introduction to LifeMD, Inc. (LFMD) Securities Class Action Lawsuit

A securities fraud class action has been filed against LifeMD, Inc. (NASDAQ: LFMD) covering May 7, 2025 to August 5, 2025, inclusive. Investors allege the company overstated its competitive position and raised 2025 guidance without properly accounting for rising customer acquisition costs in the RexMD segment and in selling obesity drugs such as Wegovy and Zepbound. The story turned on August 5, 2025, when LifeMD lowered full‑year 2025 guidance, citing temporary challenges at RexMD and elevated acquisition costs in a highly competitive ED market. The next day, LifeMD's stock fell 44.8% to close at $6.53. According to the complaint, investors suffered losses following this decline.

LifeMD, Inc. (LFMD) Securities Lawsuit Case Details

Case Name: Johnston v. LifeMD, Inc., et al.
Case No.: 2:25-cv-04761
Jurisdiction: U.S. District Court, Eastern District of New York
Filed on: August 27, 2025

LifeMD, Inc. (LFMD) Company Profile

LifeMD is a provider of virtual primary care, offering telemedicine, laboratory and pharmacy access, and specialized treatment across more than 200 conditions including primary care, men's and women's health, weight management, and hormone therapy.

LifeMD, Inc. (LFMD) Securities Lawsuit Class Period

May 7, 2025–August 5, 2025, inclusive

Eligible investors are persons or entities who purchased or otherwise acquired publicly traded LifeMD securities during the Class Period and may be eligible to join the LifeMD, Inc. (LFMD) class action lawsuit.

Allegations in the LifeMD, Inc. (LFMD) Securities Class Action Lawsuit

The lawsuit targets LifeMD, Inc. and two executives—Chief Executive Officer and Chairman Justin Schreiber and Chief Financial Officer Marc Benathen—over statements about the company's performance, competitive position, and 2025 outlook. According to the complaint, defendants told investors that LifeMD was performing strongly while raising full-year 2025 guidance.

In a press release on May 6, 2025, Schreiber said LifeMD had "an outstanding first quarter" and achieved its first‑ever GAAP profitability ahead of expectations, adding that the weight management program was expected to exceed top‑ and bottom‑line expectations for the full year. That same day, Benathen stated the first quarter was "exceptionally strong," highlighted telehealth growth metrics, and announced that LifeMD was raising its full‑year 2025 guidance for revenue and adjusted EBITDA. On the earnings call, Schreiber further asserted that LifeMD was "the only virtual care provider offering synchronous consults integrated with both NovoCare and LillyDirect," and described a "category‑defining competitive moat" in virtual obesity care, while Benathen characterized the company's revenue posture as relatively conservative.

Investors allege that, contrary to these assurances, defendants materially overstated LifeMD's competitive position and were reckless in raising 2025 guidance because they had not properly accounted for rising customer acquisition costs in the RexMD segment and for obesity drug offerings like Wegovy and Zepbound. As a result, the complaint asserts defendants' statements about LifeMD's business, operations, and prospects were false and misleading and/or lacked a reasonable basis throughout the relevant period.

The Truth Emerges

On August 5, 2025, LifeMD issued a press release and held an earnings call lowering full‑year 2025 guidance. Management attributed the change to "some temporary challenges facing our Rex MD business" and a "challenging second quarter, primarily due to temporarily elevated customer acquisition costs in the highly competitive ED market." Schreiber added that "we weren't satisfied with our overall performance."

These disclosures contradicted earlier claims about a strong competitive position, a "category‑defining" moat in obesity care, and a conservative approach to revenue and guidance. The complaint ties the guidance cut and admissions about elevated acquisition costs to the alleged omissions and misstatements during the class period.

Market Reaction

Following the August 5, 2025 announcement after market close, LifeMD's stock declined sharply the next day. On August 6, 2025, the price of LifeMD common stock fell $5.31 per share, or 44.8%, to close at $6.53.

Next Steps

• Submissions for lead plaintiff are due October 27, 2025.
• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.
• The Court will then consider motion for class certification.
• The Court will later consider a Motion to Dismiss.

To learn if you are eligible for recovery under the LFMD securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.