LifeMD Inc. directors and officers overstated the telehealth company’s business prospects before having to rein in its fiscal 2025 guidance because of customer acquisition costs and drug refunds, an investor alleges.
LifeMD stock tumbled 45% the day after the Aug. 5 guidance announcement, exposing the company to the costs of defending a proposed class action, James Poulos says in a derivative suit filed Tuesday in the US District Court for the Eastern District of New York.
The selloff was the stock’s steepest in nearly 10 years, according to data compiled by Bloomberg.
CEO and board chair Justin Schreiber sold stock ...
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