FTC sues Hims & Hers Health over data sharing and ROSCA violations
News provided byHims & Hers Health, Inc · 2 min read
SAN FRANCISCO, Sept. 3, 2026 /CourierPR/ -- Hims & Hers Health, Inc. (NYSE: HIMS) and certain company executives are now facing a securities class action lawsuit after the Federal Trade Commission (FTC) filed a sweeping federal complaint against the company. The lawsuit, led by Hagens Berman, a plaintiffs' rights firm, encourages HIMS investors who suffered substantial losses to submit their claims.
The lawsuit centers on Hims' repeated assurances that it maintains robust policies and procedures to protect health and personal information. However, the complaint alleges that Hims engaged in several practices that violated these claims:
1. Deceptive Health Data Sharing: Despite marketing campaigns emphasizing privacy and data protection, the FTC alleges that Hims shared consumers' sensitive medical information with third-party advertising giants, including Meta Platforms (Facebook) and Snap, through embedded tracking pixels and customer list matching.
2. Subscription Billing and Cancellation Barriers (ROSCA Violations): The lawsuit accuses Hims of violating the Restore Online Shoppers' Confidence Act (ROSCA) by enrolling consumers in recurring subscription models without informed consent. According to regulators, consumers were billed for prescriptions almost immediately upon completing an intake form, before receiving any consultation with a medical provider. The complaint also highlights the use of dark patterns and hidden cancellation options to prevent subscription termination.
These allegations had a significant impact on the company's stock price. On July 29, 2026, Hims shares plummeted by 14.7%, losing $4.32 per share and erasing over $970 million in market capitalization in a single day.
Reed Kathrein, a partner at Hagens Berman leading the investigation, stated, "We are focused on whether Hims may have intentionally misled investors about its business practices, including the adequacy of its internal controls, and the financial ramifications of the alleged misconduct."
Investors who believe they may have suffered substantial losses are encouraged to submit their claims now. Whistleblowers with non-public information regarding Hims are also encouraged to contact the firm, as they may qualify for rewards under the SEC Whistleblower program.
Hagens Berman, a global plaintiffs' rights complex litigation firm, has a robust practice representing investors, whistleblowers, workers, consumers, and others. The firm's team has secured over $2.9 billion in settlements and has achieved real results for those harmed by corporate negligence.