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Shareholder rights law firm Robbins LLP announces that a purchaser of LifeMD f/k/a Conversion Labs, Inc. (NASDAQ: LFMD) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between January 19, 2021 and April 13, 2021. LifeMD is direct-to-patient telehealth company that purports to help patients access licensed providers for diagnoses, virtual care, and prescription medications.
If you suffered a loss due to LifeMD, Inc.'s misconduct, click here.
LifeMD, Inc. (LFMD) Misled Investors Regarding its Business Operations
According to the complaint, throughout the class period, defendants made false and/or misleading statements regarding its business. Specifically, defendants failed to disclose that: (1) many of its executives were associated with Redwood Scientific when it was charged for unlawful autoshipping, abusive telemarketing, and false claims, and that they employed similar practices at the Company; (2) LifeMD engaged in autoshipping products to unwilling customers to record recurring revenue and the Company made it difficult to cancel such subscriptions; (3) certain of the purportedly licensed physicians on the Company’s platform were not in fact licensed and faced disciplinary action; (4) as a result of the foregoing practices, the Company was reasonably likely to face regulatory scrutiny and/or reputational harm; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’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 the Company's executives were involved in "wide ranging fraud" at Redwood Scientific prior to joining LifeMD, which was charged by the U.S. Federal Trade Commission for "unlawful autoshipping, abusive telemarketing, and false claims." On this news, the Company's share price fell 24% to close at $9.00 per share on April 14, 2021.
If you purchased shares of LifeMD, Inc. (LFMD) f/k/a Conversion Labs, Inc. (CVLB) between January 19, 2021 and April 13, 2021, you have until June 15, 2021, to ask the court to appoint you lead plaintiff for the class. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or email@example.com, or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against LifeMD, Inc. settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006139/en/