Why LifeMD Stock Is Plunging Today
Shares of telehealth services provider LifeMD (NASDAQ: LFMD) are falling sharply on Monday and were down by 12.7% as of 1:49 p.m. EDT, after dropping by as much as 18.8% earlier in the day. These losses are a bit surprising: The company released better-than-expected preliminary first-quarter results this morning, so one might expect that its stock would be moving in the opposite direction. Perhaps we can attribute LifeMD's woes on the market today to a shareholder class action lawsuit against the company filed by Pennsylvania-based law firm Kaskela Law.
Understanding the basis for Kaskela Law's class action lawsuit requires a bit of background information. On April 14, investigative research firm Culper Research made serious accusations against LifeMD in a short-seller report. Specifically, Culper Research alleged that LifeMD and its executives are engaged in fraudulent and criminal business activities.
Image source: Getty Images.
Source Fool.com
