NEW YORK, May 11, 2021 / PRNewswire / – Pomerantz LLP Announces that a Class Action has been filed against LifeMD, Inc. f / k / a Conversion Labs, Inc. (âLifeMDâ or the âCompanyâ) (NASDAQ: LFMD) and certain of its officers . The class action, filed in United States District Court of the Southern District of new York, and listed under 21-cv-04004, is in the name of a class made up of all persons and entities other than defendants who have purchased or otherwise acquired LifeMD securities between January 19, 2021 and April 13, 2021, inclusive (the âClass Periodâ). The plaintiff is pursuing claims against the defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased LifeÂ® securities during the Class Period, you have until June 15, 2021 to ask the court to appoint you as the principal plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [emailÂ protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
LifeMD is a telehealth company that speaks directly to patients. It offers a telemedicine platform that aims to help patients access licensed providers for diagnostics, virtual care, and prescription drugs.
The complaint alleges that, throughout the class action period, the defendants made materially false and misleading statements regarding the business of the company. Specifically, the defendants made false and / or misleading statements and / or failed to disclose that: (i) numerous executives of LifeMD were associated with Redwood Scientific Technologies, Inc. (âRedwood Scientificâ) when it established been charged with illicit autoshipping, abusive telemarketing, and misrepresentation, and that they used similar practices within the Company; (ii) LifeMD has engaged in the automatic dispatch of products to customers unwilling to record recurring income and the Company has made it difficult to cancel these subscriptions; (iii) some of the doctors allegedly authorized on the Company’s platform were in fact not licensed and were subject to disciplinary action; (iv) as a result of the above practices, the Company was reasonably likely to face regulatory review and / or damage to its reputation; and (v) as a result of the foregoing, the positive statements by the defendants regarding the business, operations and prospects of the company were materially misleading and / or lacking reasonable basis.
At April 14, 2021, Culper Research (“Culper”) released a report alleging that “LifeMD appears to use unlicensed physicians to dispense over-the-counter drugs, has implemented an automatic transmission / automatic billing system, has not honored guarantees and implemented abusive telemarketing practices “. The report also alleged that several company executives were involved in a “high-profile fraud” at Redwood Scientific, which had been accused by the United States Federal Trade Commission of “illegal automatic transmission, abusive telemarketing and misrepresentation.” Specifically, according to Culper, “many customers are effectively tricked into purchasing subscriptions rather than one-off purchases” and LifeMD “makes cancellations difficult, if not impossible.”
At this news, the company’s stock price fell $ 2.84, or 24%, to close at $ 9.00 per share on April 14, 2021, on an unusually high volume of transactions.
The Pomerantz firm, with offices in new York, Chicago, Los Angeles, and Paris is recognized as one of the leading companies in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous indemnities of several million dollars on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP