LFMD CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against LifeMD, Inc.
THE ANGEL–(BUSINESS WIRE) – Frank R. Cruz law firms announce that they have filed a class action lawsuit in the U.S. District Court for the Southern Borough of New York, titled Owens v LifeMD, Inc., et al. (Case # 1: 21-cv-03384) on behalf of any person or entity who acquired LifeMD, Inc. (“LifeMD” or the “Company”) (NASDAQ : LFMD) purchased or otherwise acquired; inclusive (the “teaching period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days after such notification to appoint the court as the lead plaintiff in this lawsuit.
If you are a shareholder who has suffered a loss, click here to participate.
On April 14, 2021, Culper Research released a report claiming that “LifeMD appeared to be using unlicensed doctors to dispense OTC medication, implemented an automated shipping / billing scheme, failed to meet guarantees, and introduced abusive telemarketing practices. “The report also alleged that several company executives were involved in” widespread fraud “at Redwood Scientific, which the US Federal Trade Commission charged with” unlawful automatic shipping, improper telemarketing and false allegations. ” According to Culper Research, “many customers are effectively tricked into buying subscriptions rather than one-time purchases,” and LifeMD “makes cancellations difficult, if not impossible.”
In that news, the company’s share price fell $ 2.84, or 24%, to close at $ 9.00 per share on April 14, 2021 amid unusually high trading volume.
Throughout the class period, defendants made materially false and / or misleading statements and did not disclose any material adverse facts about the business, business and prospects of the company. Specifically, Defendants have failed to advise investors: (1) that many LifeMD executives were associated with Redwood Scientific when it was charged with unlawful auto-shipping, improper telemarketing, and false allegations, and that they engaged in similar practices within the Company; (2) that LifeMD is releasing products to unwilling customers for recurring revenue and has made it difficult for the Company to cancel such subscriptions; (3) that some of the allegedly licensed doctors on the Company’s platform were, in fact, not licensed and subject to disciplinary action; (4) that the company was exposed to regulatory controls and / or reputational damage as a result of the above practices; and (5) that Defendant’s positive statements about the Company’s business, operations and prospects as a result of the foregoing were materially misleading and / or were unfounded.
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If you purchased LifeMD securities during the class period, you may move the court no later than 60 days after this notice to request the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or you can take no action and remain an absent member of the class. If you have purchased LifeMD securities, have information or would like to learn more about these claims, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of the Frank R. Law Firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, email firstname.lastname@example.org or visit our website at www.frankcruzlaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.
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