LIFEMD ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against LifeMD, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who have bought LifeMD, Inc. (NASDAQ: LFMD) securities between January 19, 2021 and April 13, 2021 inclusive (the “Class Period”). Investors have until June 15, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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LifeMD is a telemedicine company that goes directly to patients. It provides a telemedicine platform designed to make it easier for patients to access licensed providers for diagnosis, virtual care, and prescription drugs.
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 implicated in” widespread fraud “at Redwood Scientific, charged by the US Federal Trade Commission with” illegal auto-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 stock price fell $ 2.84, or 24%, to close at $ 9.00 per share on April 14, 2021.
The complaint, filed on April 16, 2021, alleges that throughout the teaching period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, operations and prospects. Specifically, Defendants have failed to advise investors: (1) that many of LifeMD’s executives were associated with Redwood Scientific when it was charged with illegal motoring, telemarketing, and false allegations, and that they engaged in similar practices within the Company; (2) LifeMD is shipping products to customers who are unwilling to post recurring revenue and the Company has made it difficult 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.
If you have purchased LifeMD securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at firstname.lastname@example.org, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.