Hims & Hers Health, Inc. faces a proposed investor class action over alleged disclosure failures, adding shareholder litigation to a separate federal case challenging the telehealth company’s data and billing practices.
Investor Hemalatha Velanki filed the securities case Sept. 1 in federal court in the Northern District of California, court records show. The defendants include Hims & Hers, CEO Andrew Dudum and CFO Oluyemi Okupe.
An Oct. 23 notice from Kahn Swick & Foti says the proposed class spans investors who purchased or acquired Hims securities from Aug. 4, 2025, through July 29, 2026. The firm says the complaint alleges Hims did not give investors information about its privacy and billing practices or related regulatory risks. The securities claims have not been proved. EconoTimes has previously covered the lead-plaintiff deadline.
The Federal Trade Commission (FTC), Utah’s Division of Consumer Protection and Los Angeles County, acting for California, filed a separate consumer-protection lawsuit on July 29. The FTC alleges Hims disclosed customers’ sensitive health details to advertising companies such as Meta and Snap. The agency also challenges charges made shortly after some consumers submitted intake forms and says cancellation was difficult for some subscribers.
Hims’ investor-relations records list a July 28 closing price of $29.32 and a July 29 close of $25.00. That $4.32 decline equals 14.73% of the prior close. The drop coincided with the government lawsuit’s filing, but the price data alone do not show what caused the change.
Hims said it would defend itself against the FTC’s allegations, which it called “baseless.” In its Form 10-Q, Hims reported an approximately $60 million legal contingency accrual for the FTC matter as of June 30, 2026. The company said it could not assess how the litigation would end or quantify reasonably possible losses above that amount. The filing says the FTC inquiry began with a Civil Investigative Demand in October 2023; Hims said it cooperated, but settlement discussions did not produce an agreement.
Investors seeking appointment as lead plaintiff must apply by Nov. 2, according to Kahn Swick & Foti. The date sets an application cutoff for who may represent the proposed class, not a compensation deadline.
