FTC Sues Hims & Hers Health Over Privacy and Billing Practices

On July 29, 2026, the Federal Trade Commission (FTC) filed a lawsuit against Hims & Hers Health, Inc., alleging that the company shared consumers' sensitive health information with third-party advertising platforms despite claiming to maintain users' privacy. The FTC also accused the company of deceiving users regarding its billing and cancellation practices. Specifically, the FTC alleged that Hims & Hers Health failed to clearly disclose that it charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they would be able to consult with a medical provider to find a treatment that is "right for them."

This revelation sent shockwaves through the market, causing the company's stock price to plummet. By the end of the trading day, Hims & Hers Health shares fell $4.32, or 14.73%, to close at $25.00, marking a significant 14% decline in the company's stock value. The unusual trading volume on that day suggests that many investors were reacting to the news of the FTC's lawsuit.

The lawsuit is part of a broader class action lawsuit filed by Kahn Swick & Foti, LLC, on behalf of investors who purchased Hims & Hers Health securities between August 4, 2025, and July 29, 2026. The firm is reminding investors with substantial losses that they have until November 2, 2026, to file a lead plaintiff application in the case.

KSF, a boutique securities litigation law firm, is representing investors in this case. The firm's Managing Partner, Lewis Kahn, stated, "Hims & Hers Health has failed to disclose material information during the class period, violating federal securities laws. This action is a response to the company's deceptive practices and the significant impact on investor confidence."

The FTC's lawsuit highlights the growing scrutiny of telehealth providers and their handling of sensitive health data. The allegations against Hims & Hers Health come at a time when the telehealth industry is rapidly expanding, with increasing concerns about data privacy and transparency.

The case, Velanki v. Hims & Hers Health, Inc. et al., 26-cv-09313, is pending in the United States District Court for the Northern District of California. This development could have far-reaching implications for Hims & Hers Health, potentially affecting its operations, reputation, and financial performance.

Investors who purchased Hims & Hers Health securities during the class period are encouraged to contact KSF to discuss their legal rights and options. The firm is offering free consultations to help investors understand the potential impact of the lawsuit on their investments.