What is the potential financial exposure (e.g., settlement size) for investors who participated in the LifeMD purchase period?

The filing does not disclose a specific settlement figure, so the exact financial exposure for investors who bought LFMD shares between May 7 and August 5 2025 remains unknown. In securities‑class‑action cases the eventual recovery typically reflects the aggregate loss‑on‑investment suffered by the class members, minus legal fees and expenses. Roughly speaking, exposure can be approximated by the decline in the stock price from the purchase date to the current market level multiplied by the number of shares each investor holds. For example, if an investor bought at $12 per share and the stock is now trading around $5, the per‑share loss is about $7, which would be the basis of any potential settlement award (subject to the court’s allocation formula).

From a trading perspective, the pending litigation adds a layer of event‑risk to LFMD. The October 27 2025 deadline for the lead‑plaintiff motion may trigger heightened volatility as investors speculate on the size and timing of any settlement. Technical charts show the stock in a prolonged downtrend, with the 20‑day EMA well below the 50‑day EMA and the price testing support near the $4‑$5 region. Unless the case resolves with a sizable payout that could boost sentiment, the downside bias remains. Short‑term traders might consider positioning for further weakness on break‑downs below current support, while long‑term holders should monitor the lawsuit’s progress for any catalyst that could materially alter the risk‑reward profile.