The lawsuit, filed by Hagens Berman, targets the period between August 4, 2025, and July 29, 2026. It alleges that the company falsely assured investors of its commitment to safeguarding personal health information while simultaneously sharing sensitive user data with advertising giants like Meta and Snap. Regulators contend these actions, combined with aggressive subscription tactics, directly violated established consumer protection standards, including the Restore Online Shoppers' Confidence Act.
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Hims & Hers Health Faces Class Action Lawsuit Following FTC Probe
A federal investigation into Hims & Hers Health has triggered a securities class action lawsuit, leaving investors reeling after a sharp stock decline. The litigation centers on allegations that the telehealth provider misled the public regarding data privacy and subscription billing practices, prompting a major sell-off of company shares.
Market reaction to the July 29, 2026, regulatory complaint was immediate and severe. Hims shares dropped $4.32, a 14.7% decline that wiped out roughly $970 million in market capitalization in a single trading session. Reed Kathrein, a partner at Hagens Berman, stated the firm is investigating whether executives intentionally misled shareholders about the adequacy of internal controls and the potential financial impact of the regulatory scrutiny. Investors seeking to participate in the class action have until November 2, 2026, to file as lead plaintiffs.
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