The lawsuit, filed by Hagens Berman, centers on claims that the telehealth firm misled investors regarding its internal controls and privacy safeguards. During the class period between August 4, 2025, and July 29, 2026, Hims consistently assured shareholders that it maintained robust administrative and technical protections for personal health information. The complaint alleges these statements were undermined by the unauthorized sharing of sensitive user data with advertising platforms like Meta and Snap.

Beyond data privacy, the litigation targets the company’s billing procedures. Regulators contend that Hims violated the Restore Online Shoppers' Confidence Act by enrolling customers in recurring subscriptions before they consulted with a medical provider. The firm is also accused of deploying "dark patterns" to complicate cancellation requests. These revelations caused Hims shares to drop 14.7% in a single session, a decline of $4.32 per share. Reed Kathrein, a partner at Hagens Berman, stated the firm is investigating whether executives intentionally misrepresented the adequacy of internal controls to the market. Investors seeking to participate in the action must meet a lead plaintiff deadline of November 2, 2026.