Hims & Hers Faces Securities Class Action Over FTC Privacy Allegations

The lawsuit, spearheaded by Hagens Berman, centers on allegations that the company misled shareholders regarding its internal data safeguards. While Hims repeatedly assured investors that it maintained rigorous technical protections for personal health information, the FTC contends the company shared sensitive user data with advertising platforms like Meta and Snap via tracking pixels. Regulators further allege that Hims violated the Restore Online Shoppers' Confidence Act by enrolling consumers in recurring subscription models without informed consent, often billing patients before they had even consulted with a medical provider.

These revelations triggered a sharp market correction on July 29, 2026, when Hims shares plummeted by $4.32, a 14.7% single-day drop that wiped out approximately $970 million in market capitalization. Reed Kathrein, a partner at Hagens Berman, stated that the firm is investigating whether the company intentionally misled investors about both its business practices and the potential financial fallout from the regulatory scrutiny. Beyond the investor lawsuit, the firm is also soliciting information from whistleblowers who may have non-public insights into the company’s internal operations, citing the potential for rewards under SEC programs.