SAN FRANCISCO, Aug. 19, 2026 /PRNewswire/ — investors in Hims & Hers Health, Inc. (NYSE: HIMS) saw the price of their shares slide about 14% lower on news that the FTC sued the company over alleged improper business practices.
The events have prompted national shareholders rights firm Hagens Berman to open an investigation into whether Hims & Hers might have engaged in unlawful business practices and, if so, whether such conduct violated the U.S. securities laws.
The firm encourages HIMS investors who suffered substantial losses to submit your losses now. Persons with knowledge who may be able to assist the investigation are invited to contact the firm’s attorneys.
Visit Hims Investigation Page: www.hbsslaw.com/cases/hims
Direct Contact Email: HIMS@hbsslaw.com
Firm Telephone: 844-916-0895
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:
- 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.
- 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.
“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,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in HIMS and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now »
Whistleblowers: Persons with non-public information regarding HIMS should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email HIMS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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SOURCE Hagens Berman Sobol Shapiro LLP
