Why LifeMD Stock Is Getting Crushed Today
Shares of healthcare services provider LifeMD (NASDAQ: LFMD) are plunging on Wednesday and were down by 22.3% as of 3:45 p.m. EDT. The company did not report any news, but these losses are a result of a short-seller report issued by investigative research firm Culper Research.
In its report, Culper Research makes a series of claims concerning LifeMD, its executives, and its operations which, if true, could be devastating to the healthcare company and its shareholders. For instance, Culper Research alleges that LifeMD presents misleading information regarding its network of doctors and even uses unlicensed professionals "to dispense OTC medication."
Further, Culper Research thinks LifeMD is engaged in fraudulent and illegal activities that are similar to those of Redwood Scientific, a company that faced severe legal penalties at the hands of the U.S. Federal Trade Commission (FTC) back in 2018.
Source Fool.com
