Hims & Hers Faces Securities Lawsuit Following FTC Privacy Complaint

The litigation centers on allegations that the company compromised consumer privacy by sharing sensitive medical information with advertising platforms like Meta and Snap. Regulators, including the FTC and officials from Utah and Los Angeles, contend that Hims employed deceptive practices, including subscription models that violated the Restore Online Shoppers' Confidence Act. Plaintiffs claim these actions were concealed from investors, who were repeatedly assured that the company maintained rigorous technical and administrative safeguards for personal data.

The market impact of these revelations was immediate. Following the July 29, 2026, disclosure of the federal complaint, Hims shares plummeted by 14.7%, shedding $4.32 per share and wiping out nearly $1 billion in market capitalization. Hagens Berman, the firm leading the investigation, is now scrutinizing whether executives intentionally misrepresented the company's internal controls and the financial risks posed by potential regulatory penalties. Reed Kathrein, a partner at the firm, stated that the investigation remains focused on the discrepancies between the company's public assurances and its actual business conduct during the class period, which spans from August 4, 2025, to July 29, 2026.