LifeMD, Inc. Class Action Lawsuit
- Company Name
- LifeMD, Inc.
- Stock Symbol
- Class Period
- January 19, 2021 to April 13, 2021
- Motion Deadline
- June 15, 2021
- Southern District of New York
The LifeMD, Inc. class action lawsuit charges LifeMD and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities that purchased or otherwise acquired LifeMD securities between January 19, 2021 and April 13, 2021, inclusive (the “Class Period”). The LifeMD class action lawsuit was commenced on April 16, 2021 in the Southern District of New York and is captioned Owens v. LifeMD, Inc., No. 21-cv-03384.
LifeMD is a direct-to-patient telehealth company. LifeMD offers a telemedicine platform that purports to help patients access licensed providers for diagnoses, virtual care, and prescription medications. LifeMD was previously known as Conversion Labs, Inc., and its common stock traded on the NASDAQ exchange under the symbol “CVLB.” LifeMD’s name was changed effective February 19, 2021, and the stock symbol changed effective February 22, 2021.
The LifeMD class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) many of LifeMD’s executives were associated with Redwood Scientific Technologies, Inc. (“Redwood Scientific”) when it was charged for unlawful autoshipping, abusive telemarketing, and false claims, and that they employed similar practices at LifeMD; (ii) LifeMD engaged in autoshipping products to unwilling customers to record recurring revenue and LifeMD made it difficult to cancel such subscriptions; (iii) certain of the purportedly licensed physicians on LifeMD’s platform were not in fact licensed and faced disciplinary action; (iv) as a result of the foregoing practices, LifeMD was reasonably likely to face regulatory scrutiny and/or reputational harm; and (v) consequently, defendants’ positive statements about LifeMD’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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 report also alleged that several of LifeMD’s executives were 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.” Specifically, according to Culper Research, “many customers are effectively duped into purchasing subscriptions rather than one-time purchases” and LifeMD “makes cancellations difficult if not impossible.” On this news, LifeMD’s share price fell approximately 24%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased LifeMD securities during the Class Period to seek appointment as lead plaintiff in the LifeMD class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the LifeMD class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the LifeMD class action lawsuit. An investor’s ability to share in any potential future recovery of the LifeMD action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the LifeMD class action lawsuit or have questions concerning your rights regarding the LifeMD class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the LifeMD class action lawsuit must be filed with the court no later than June 15, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.