Hims & Hers Health Faces Securities Class Action Over FTC Complaint
News related to:Hims & Hers Health, Inc · 1 min read
SAN FRANCISCO, Sept. 17, 2026 /CourierPR/ -- Hims & Hers Health, Inc., a company that provides telehealth services, is facing a significant legal challenge after the Federal Trade Commission (FTC) filed a sweeping federal complaint against the firm. The complaint alleges that Hims engaged in serious business misconduct, including deceptive health data sharing and violations of the Restore Online Shoppers' Confidence Act (ROSCA).
According to the FTC, Hims shared consumers' health information with third-party advertising platforms, such as Meta Platforms (Facebook) and Snap, through embedded tracking pixels and customer list matching. The company also reportedly charged consumers for prescriptions almost immediately after they submitted intake forms, despite promising that they would be able to consult with a medical provider to find a treatment that was "right for them." This practice, the FTC claims, would subject Hims to heightened regulatory scrutiny and potential fees and penalties.
The market's reaction to this news was swift and severe. On July 29, 2026, Hims & Hers Health's stock price plummeted by $4.32, a 14.7% drop, erasing over $970 million from the company's market capitalization in a single day. This significant loss has prompted a securities class action lawsuit, with Hagens Berman, a plaintiffs' rights complex litigation firm, actively investigating the alleged claims.
Hagens Berman is encouraging Hims & Hers Health investors who suffered substantial losses during the class period, which spans from August 4, 2025, to July 29, 2026, to submit their losses. The firm is particularly 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.
The lawsuit is part of a broader investigation into Hims' business practices. If successful, whistleblowers could receive rewards totaling up to 30 percent of any successful recovery made by the SEC. Hagens Berman has a track record of securing significant recoveries, having achieved more than $2.9 billion in this area of law.