The lawsuit, filed by Hagens Berman, targets the period between August 4, 2025, and July 29, 2026. It centers on allegations that the telehealth provider misled shareholders regarding its internal data safeguards and subscription billing practices. The litigation mirrors claims brought by the Federal Trade Commission, the State of Utah, and the County of Los Angeles, which accuse Hims of violating the Restore Online Shoppers' Confidence Act. Regulators contend that the company enrolled users in recurring charges before they even consulted a medical provider and utilized complex cancellation barriers to retain subscribers.
In section Releases
Hims & Hers Health Investors File Class Action Following FTC Lawsuit
Investors have launched a securities class action against Hims & Hers Health after a federal complaint revealed the company allegedly shared sensitive patient data with third-party advertisers. The legal push follows a sharp market reaction that wiped nearly $1 billion from the company’s valuation in a single day.
According to the complaint, Hims purportedly shared private medical information with platforms like Meta and Snap through embedded tracking pixels, contradicting the company's public assurances of discreet, protected care. The market impact was immediate; on July 29, 2026, shares of HIMS dropped 14.7%, or $4.32, erasing $970 million in market capitalization. Reed Kathrein, a partner at Hagens Berman, noted that the investigation aims to determine whether the company intentionally misled investors about the adequacy of its internal controls and the potential financial penalties resulting from these regulatory breaches. Investors seeking to participate in the class action have until November 2, 2026, to file as a lead plaintiff.
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