Investors file class action against Hims & Hers after FTC suit triggers stock plunge

Investors, led by Hemalatha Velanki, have lodged a class-action lawsuit against telehealth provider Hims & Hers, asserting that the company concealed deceptive business conduct that later sparked a federal FTC lawsuit and a roughly 15% plunge in its share price. The complaint alleges that the firm issued misleading financial disclosures, overstated its privacy safeguards, and failed to reveal that it charges customers for prescriptions after intake forms.

The FTC’s case also targets the company's sharing of consumer health data with third-parties such as Meta and Snap, as well as questionable advertising tactics. Hims & Hers responded on social media, rejecting the regulator’s claims and promising a robust defense of the follow-on securities suit. The legal action names CEO Andrew Dudum and CFO Oluyemi Okupe as defendants and requests the court to certify the class, award compensatory damages, and grant a jury trial for investors who purchased stock from August 4 2025 through July 29 2026. A spokesperson reiterated the intent to contest the allegations, which hinge on the same accusations raised by the FTC.