Hims & Hers Faces Investor Suit, Shares Fall
Hims & Hers Faces Investor Suit, Shares Fall
Anonymous
Key Points
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The securities lawsuit focuses specifically on Hims’ repeated assurances that it maintained administrative, physical and technical safeguards to protect health and personal information—statements plaintiffs allege were misleading in light of the FTC’s claims.
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The FTC action was filed in the U.S. District Court for the Northern District of California and included Utah and Los Angeles County as co-plaintiffs, according to the coverage.
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Regulators allege that Hims violated the Restore Online Shoppers’ Confidence Act by enrolling consumers in recurring subscriptions without informed consent and creating barriers to cancellation.
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The FTC’s allegations potentially implicate multiple laws beyond the FTC Act, including Utah’s Consumer Sales Practices Act and California’s false-advertising and unfair-competition laws.
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The class action alleges that Hims’ officers and directors may also have engaged in securities fraud or other unlawful business practices, rather than limiting the claims solely to the company.
Hims & Hers Health faces a securities class-action lawsuit after federal and state regulators accused the telehealth company of misleading investors about its privacy practices. Kaplan Fox reported that the company allegedly shared sensitive patient health data with Meta and Snap despite promising strong data protections. The stock fell 14.73% after the Federal Trade Commission filed charges on July 29, 2026.
Investors who bought Hims shares between August 4, 2025, and July 29, 2026, can seek lead-plaintiff status by November 2, 2026. The lawsuit also alleges the company charged customers for prescriptions immediately after intake forms were submitted and made subscription cancellation deliberately difficult. These allegations have not been proven in court.
FTC Accuses Hims of Illegal Data Sharing
The Federal Trade Commission, along with Utah and Los Angeles County, filed suit in the U.S. District Court for the Northern District of California. Regulators claim Hims repeatedly promised customers that it used "administrative, physical and technical safeguards" to protect health information. But the company allegedly shared this data with advertising platforms including Meta and Snap to target patients with promotions.
The breach of privacy promises forms the core of the investors' securities fraud claim. Kaplan Fox noted that shareholders relied on Hims' public assurances about data security when making investment decisions. If those assurances were false, investors say they suffered losses as a result.
Billing and Subscription Cancellation Issues
Regulators also accused Hims of charging customers for prescriptions within days of submitting intake forms, before proper medical review occurred. The company allegedly enrolled consumers in recurring subscriptions without clear informed consent. Kaplan Fox reported that canceling a subscription was deliberately made difficult, trapping customers in unwanted charges.
These practices allegedly violated the Restore Online Shoppers' Confidence Act, a federal law that protects consumers from deceptive billing. State laws in California and Utah add further protections against false advertising and unfair business practices that Hims is accused of breaking.
Investors Can Join the Lawsuit Before November
Shareholders who experienced significant losses can seek to become lead plaintiffs in the class action. Kaplan Fox set the November 2, 2026, deadline for investors to file their claims with the court. Being a lead plaintiff allows investors to help guide the lawsuit and potentially recover more of their losses.
The lawsuit names Hims officers and directors as defendants, alleging they knowingly made false statements or recklessly ignored warning signs. The case will likely take months or years to resolve. No settlement has been reached, and Hims has not admitted wrongdoing.
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