The legal action follows a July 29, 2026, announcement from the Federal Trade Commission, which sued the telehealth provider for allegedly sharing sensitive patient health data with third-party advertisers. The FTC complaint further claims the company deceived users about its subscription billing process, specifically noting that customers are charged for prescriptions before consulting with a medical provider.

Following the FTC's disclosure, Hims & Hers shares dropped $4.32, or 14.73%, closing at $25.00 on heavy trading volume. The lawsuit, Velanki v. Hims & Hers Health, Inc., asserts that the company failed to disclose these material issues throughout the period spanning August 4, 2025, to July 29, 2026. Attorneys at Kahn Swick & Foti, LLC are currently representing the case, and shareholders seeking legal evaluation are directed to the ClaimsFiler portal.