LifeMD, Inc. (LFMD), a telemedicine company, responded to the short report making false claims against today it after which the LFMD stock happened to be green as it saw a push of 0.22% to reach $9.02 a share at the time of this writing. In the previous trading session, LFMD stock went down due to the short-seller report issued by Culper Research and closed with a 23.99% drop. Let’s try to understand more of it.
LifeMD denied the claims against it and its present and former officers by the Cupler Research firm. Culper Research alleged that LifeMD is misleading its shareholders by providing false information related to its doctors and health professional and even unlicensed professional are a part of it. Culper Research further claimed that the LFMD is engaged in fraudulent and illegal activities.LFMD completely denied these claims and its outside legal counsel Quinn Emanuel Urquhart & Sullivan, LLP has started the investigation of the source of these claims.LFMD will soon provide a detailed public response against these false claims and will take appropriate legal action.
Previous Development of LFMD stock:
On April 07, 2021, LFMD stock did announce the launching of NavaMD™ which is LifeMD’s personalize teledermatology brand and clinic. The clinic offers services to patients across 50 states. This was the third launch of the brand by the LFMD stock within years. NavaMD would entertain patients seeking dermatology services which include skin conditions like acne, rosacea, hyperpigmentation, signs of aging, and many more.
Financial View of LFMD stock:
On March 29, 2021, LFMD stock announced its fourth quarter and full-year 2020 financial results in which LFMD stock generated $12.9 million revenue in the fourth quarter of 2020 representing a huge increase of 227% as compared to the same period of the prior year. Full-year revenue for 2020 surged by 199% to reach $37.3 million as compared to the revenue of the previous year. Gross profit for the fourth quarter and full year was $8.9 million and $28.4 million, respectively.
LFMD stock got crushed in the previous trading session due to false claims by the Culper Research Firm but happened to be green after the announcement of its response against the claims. The yearly revenue of the LFMD stock showed growth due to the increasing demand for telehealth services over the year. LifeMD will provide a detailed public response soon which would further clear the confusion of individuals.