Hims & Hers Stock Falls 14% After FTC Filing Over Privacy Issues
In a shocking turn of events, the stock of Hims & Hers Health, Inc. (NYSE: HIMS) plunged approximately 14% following the announcement of a major lawsuit filed by the Federal Trade Commission (FTC). The lawsuit, also joined by the State of Utah and the County of Los Angeles, targets alleged misconduct relating to user privacy and billing practices.
On July 29, 2026, the FTC lodged its federal complaint in the U.S. District Court for the Northern District of California, citing serious allegations against the telehealth company. Investors reacted swiftly, sending the shares down by $4.32 to close at $25.00 per share, an immediate response that underscores the gravity of the claims.
The FTC's suit raises significant concerns about how Hims & Hers has reportedly handled sensitive patient data. The company has heavily marketed its commitment to privacy, emphasizing secure telehealth consultations. However, the lawsuit alleges that the firm improperly shared users' medical conditions and health data with third-party advertisers—including Meta Platforms (formerly Facebook) and Snap—through the use of embedded tracking technology.
The second major point of contention involves accusations that Hims & Hers violated the Restore Online Shoppers' Confidence Act (ROSCA). According to the FTC, many consumers were placed into ongoing subscription services without proper consent, resulting in charges for prescriptions that began almost immediately post-intake form submission—often before any consultation with a licensed healthcare provider. Furthermore, regulators pointed to 'dark patterns' in the user experience design, which made it difficult for subscribers to opt out or cancel their subscriptions. Such practices have been flagged as serious violations and have led to increased scrutiny.
In light of these allegations, national law firm Hagens Berman has announced an investigation into Hims & Hers, focusing on whether the company’s management upheld appropriate internal controls and accurately reported its compliance with securities laws. Partner Reed Kathrein, leading the investigation, stated, "If the FTC's allegations are substantiated, we are closely examining the implications this could have on Hims & Hers' historical financial disclosures and accuracy."
Investors who have experienced substantial losses from the recent stock decline are encouraged to contact Hagens Berman for further investigation and possible legal recourse. The firm is also inviting whistleblowers who possess non-public information regarding Hims & Hers to come forward, as they may qualify for rewards under the SEC Whistleblower Program if their information leads to successful recovery by the SEC.
Hagens Berman prides itself as a leading complex litigation firm focused on corporate accountability, having secured more than $2.9 billion for aggrieved investors and consumers. For further inquiry or to report losses, investors can reach the firm via their official contact avenues.
As the situation unfolds, it highlights broader implications for the telehealth sector, especially regarding how companies manage patient privacy and adhere to regulations. Stakeholders are advised to stay informed as this case develops, especially those with vested interests in Hims & Hers Health, Inc.
On July 29, 2026, the FTC lodged its federal complaint in the U.S. District Court for the Northern District of California, citing serious allegations against the telehealth company. Investors reacted swiftly, sending the shares down by $4.32 to close at $25.00 per share, an immediate response that underscores the gravity of the claims.
Allegations of Deceptive Practices
The FTC's suit raises significant concerns about how Hims & Hers has reportedly handled sensitive patient data. The company has heavily marketed its commitment to privacy, emphasizing secure telehealth consultations. However, the lawsuit alleges that the firm improperly shared users' medical conditions and health data with third-party advertisers—including Meta Platforms (formerly Facebook) and Snap—through the use of embedded tracking technology.
Issues with Subscription Billing
The second major point of contention involves accusations that Hims & Hers violated the Restore Online Shoppers' Confidence Act (ROSCA). According to the FTC, many consumers were placed into ongoing subscription services without proper consent, resulting in charges for prescriptions that began almost immediately post-intake form submission—often before any consultation with a licensed healthcare provider. Furthermore, regulators pointed to 'dark patterns' in the user experience design, which made it difficult for subscribers to opt out or cancel their subscriptions. Such practices have been flagged as serious violations and have led to increased scrutiny.
Investigation by Hagens Berman
In light of these allegations, national law firm Hagens Berman has announced an investigation into Hims & Hers, focusing on whether the company’s management upheld appropriate internal controls and accurately reported its compliance with securities laws. Partner Reed Kathrein, leading the investigation, stated, "If the FTC's allegations are substantiated, we are closely examining the implications this could have on Hims & Hers' historical financial disclosures and accuracy."
Next Steps for Investors
Investors who have experienced substantial losses from the recent stock decline are encouraged to contact Hagens Berman for further investigation and possible legal recourse. The firm is also inviting whistleblowers who possess non-public information regarding Hims & Hers to come forward, as they may qualify for rewards under the SEC Whistleblower Program if their information leads to successful recovery by the SEC.
Hagens Berman prides itself as a leading complex litigation firm focused on corporate accountability, having secured more than $2.9 billion for aggrieved investors and consumers. For further inquiry or to report losses, investors can reach the firm via their official contact avenues.
As the situation unfolds, it highlights broader implications for the telehealth sector, especially regarding how companies manage patient privacy and adhere to regulations. Stakeholders are advised to stay informed as this case develops, especially those with vested interests in Hims & Hers Health, Inc.
Topics Financial Services & Investing）
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