Hims & Hers Health Faces Class Action Over FTC Data Privacy Allegations

The legal action centers on accusations that Hims & Hers misled shareholders regarding its internal data security and subscription protocols. According to the complaint, the company allegedly shared sensitive user health information with advertising platforms like Meta and Snap without proper consent, despite public assurances of robust administrative safeguards. Furthermore, the suit addresses claims that the company violated the Restore Online Shoppers' Confidence Act by billing consumers for prescriptions before they had consulted with medical providers, while simultaneously employing 'dark patterns' to complicate subscription cancellations.

These allegations mirror a federal complaint launched by the FTC, the State of Utah, and the County of Los Angeles. The market response to the disclosure of these regulatory issues was immediate, causing Hims shares to drop by 14.7% on July 29, 2026, which wiped approximately $970 million from the company's total market capitalization. Hagens Berman partner Reed Kathrein stated that the firm is investigating whether the company intentionally misled investors about the adequacy of its internal controls and the potential financial impact of the alleged misconduct. The law firm is currently seeking to represent investors who sustained significant losses during the specified class period.