Join The Class Action Suit
Company: LifeMD, Inc.
Class Period: January 19, 2021 — April 13, 2021
Court: U.S.D.C. – Southern District of New York
Deadline: June 15, 2021
A shareholder class action lawsuit has been filed against LifeMD, Inc. (“LifeMD” or the “Company”) (NASDAQ: LFMD) on behalf of investors who purchased shares of the Company’s stock between January 19, 2021 and April 13, 2021, inclusive (the “Class Period”).
According to the complaint, on April 14, 2021, Culper Research issued a report alleging that “LifeMD appears to use unlicensed doctors to dispense OTC medications, has implemented an autoshipping/autobilling scheme, failed to honor guarantees, and put in place abusive telemarketing practices.” The Culper report also alleged that several of LifeMD’s executives were previously involved in “wide ranging fraud” at Redwood Scientific, which was charged by the U.S. Federal Trade Commission for “unlawful autoshipping, abusive telemarketing, and false claims.” According to the Culper report, “[a]t LifeMD, numerous customer reviews lead us to believe that the Company has implemented the same tactics. LifeMD touts its “recurring revenue” model yet we think much of the Company’s revenues are generated under false pretenses of ‘one-time purchases.’”
Following this news, shares of LifeMD’s common stock declined $2.84 per share, or nearly 25% in value, to close on April 14, 2021 at $9.00 per share, on heavy trading volume.
IMPORTANT DEADLINE: Investors who purchased LifeMD’s securities during the Class Period may, no later than June 15, 2021, seek to be appointed as a lead plaintiff representative in the action.
LifeMD investors who suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about the opportunity to actively participate in the action as a lead plaintiff representative.