Hims & Hers Health faces a securities class action after the FTC's July 29 complaint accusing the telehealth company of deceptive privacy practices erased $970 million in market value. Shares fell $4.32, or 14.7 percent, to $25.00, and investors have until Nov. 2 to seek lead plaintiff status.
Hims & Hers shares fell 14.7 percent after the FTC's July 29 privacy complaint, a drop that drew a securities class action.
"We're focused on whether Hims may have intentionally misled investors about its business practices, including the adequacy of its internal controls, and financial ramifications of the alleged misconduct," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
The lawsuit, filed in the US District Court for the Northern District of California and captioned Velanki v. Hims & Hers Health, No. 26-cv-09313, covers investors who bought HIMS securities between Aug. 4, 2025 and July 29, 2026. The complaint alleges Hims shared consumers' health information with third-party advertising platforms including Snap and Meta Platforms' Facebook, and charged consumers for prescriptions almost immediately after they submitted intake forms despite telling them they would consult a medical provider to find a treatment "right for them."
The Federal Trade Commission, joined by the State of Utah and Los Angeles County on behalf of California, filed its complaint July 29 accusing Hims of deceptive and unlawful privacy practices after an extensive investigation. Shares fell $4.32 to close at $25.00 that day, wiping out more than $970 million from the company's market capitalization. The agency's complaint also challenges Hims' repeated assurances that it "developed and maintain[ed] policies and procedures" with administrative, physical and technical safeguards to protect health information.
The class action extends the legal and financial exposure stemming from the FTC matter, which the complaint argues left Hims subject to heightened regulatory scrutiny and reasonably likely to incur fees and penalties. Investors have until Nov. 2 to request appointment as lead plaintiff, with Hagens Berman, Bronstein Gewirtz & Grossman and Kessler Topaz Meltzer & Check all soliciting claims on a contingency basis. "Our practice centers on restoring investor capital and ensuring corporate accountability," said Peretz Bronstein, founding partner at Bronstein Gewirtz & Grossman.
The twin legal fronts put Hims, trading near $25 after the drop, under pressure that could persist through the lead-plaintiff deadline and beyond. The case is being watched across the direct-to-consumer telehealth sector, where platforms handling patient data and prescription billing face intensifying regulatory scrutiny after the FTC's action against one of its largest listed players.
