Securities Class Action Lawsuit
Hims & Hers Faces Investor Class Action Following FTC Privacy Lawsuit
Anonymous
Key Points
1
The proposed securities action is pending in the U.S. District Court for the Northern District of California, and it names Hims & Hers and certain company executives as defendants for allegedly failing to disclose material information in violation of federal securities laws.
2
The FTC described the alleged conduct as involving “deceptive and unlawful privacy practices,” including sharing sensitive information about patients’ medical conditions with Snap and Meta, Facebook’s parent company.
3
Institutional investors and hedge funds held 63.52% of Hims & Hers shares, while Virginia Retirement Systems reported purchasing 29,700 shares during the second quarter, valued at about $1.03 million.
4
Hims & Hers insider Deborah Autor sold 16,773 shares on Aug. 18 at an average price of $27.85, for total proceeds of approximately $467,128; she retained 48,961 shares after the transaction.
5
Rosen Law Firm said investors may pursue compensation through a contingency-fee arrangement without upfront fees or costs, and explained that a lead plaintiff represents other class members in directing the litigation.
Hims & Hers Health faces a securities class action lawsuit after federal regulators accused the telehealth company of sharing patients' sensitive health data with Meta and Snap, charging customers for prescriptions too quickly, and hiding subscription cancellation barriers. Rosen Law Firm says investors who bought company stock between August 4, 2025 and July 29, 2026 can seek compensation. The stock dropped $4.32 per share, or 14.73%, to $25 on the news.
FTC Alleges Deceptive Privacy Practices and Hidden Fees
On July 29, 2026, the Federal Trade Commission and state authorities sued Hims & Hers, describing the conduct as "deceptive and unlawful privacy practices." FTC alleged the company shared patient medical information with Snap and Meta without clear consent. Customers also received charges for prescriptions shortly after completing intake forms, and the company made it deliberately hard to cancel subscriptions.
Investors claim Hims & Hers never told them about these risky practices or how they might harm the business. This silence made earlier company statements about its operations materially misleading, according to the lawsuit filed in U.S. District Court for the Northern District of California.
Stock Crashes 14.73% as Institutional Investors Hold Majority
Hims & Hers shares fell hard on the FTC news. Institutional investors and hedge funds owned 63.52% of the company's shares before the lawsuit. Virginia Retirement Systems bought 29,700 shares in the second quarter for about $1.03 million, according to regulatory filings.
Insider Deborah Autor sold 16,773 shares on August 18 at an average price of $27.85, netting roughly $467,128. She kept 48,961 shares after the sale, showing mixed confidence in the company's future.
Lead Plaintiff Deadline Set for November 2, 2026
Eligible investors have until November 2, 2026 to apply to represent the class of injured shareholders. Rosen Law Firm explained that a lead plaintiff directs the litigation on behalf of all class members. The law firm works on contingency, meaning investors pay no upfront fees or costs.
The lawsuit names Hims & Hers and certain executives as defendants for allegedly breaking federal securities laws. The allegations have not been proven in court, and the company may defend itself against all claims.
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