Hims & Hers Health, Inc. (HIMS) Investigation

What Drove the HIMS Stock Crash? The FTC and State Lawsuit Breakdown

On July 29, 2026, the FTC—alongside co-plaintiffs the State of Utah and the County of Los Angeles (representing California)—filed a sweeping federal complaint against Hims & Hers in the U.S. District Court for the Northern District of California (FTC et al. v. Hims & Hers Health, Inc.).

The market reaction was immediate. HIMS shares fell $4.32, or 14.73%, to close at $25.00 per share, as market participants digested the severity of the dual-pronged allegations:

1. Deceptive Health Data Sharing: Despite extensive marketing campaigns emphasizing strict privacy, discreet telehealth consultations, and data protection, the complaint alleges that Hims surreptitiously shared sensitive user medical conditions and personal health data with third-party advertising giants, including Meta Platforms (Facebook) and Snap, via embedded tracking pixels and customer list matching.
2. Subscription Billing & 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—long before receiving any consultation with a medical provider—while facing dark patterns and hidden cancellation options designed to prevent subscription termination.

HIMS Stock Investigation: Focus on Financial Reporting & Compliance

While the headline action is a government enforcement proceeding, Hagens Berman is probing deeper. The firm’s investigation focuses on whether HIMS management maintained adequate internal controls and whether public filings accurately reflected the regulatory exposure associated with its alleged tracking pixels and billing funnels.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the HIMS investigation about?

If the FTC’s allegations hold true, we are closely examining what implications these systemic practices carry for the historical accuracy of HIMS’ financial reporting and disclosures to the public markets.

WHAT SHOULD I DO?

I worked at HIMS. What should I do?

If you were an employee of HIMS, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in HIMS, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any HIMS investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.