Hims & Hers Sets Aside About $60 Million for FTC Case
Key Facts
Hims & Hers Health recorded an accounting provision of nearly $60 million for potential legal losses related to the Federal Trade Commission case, according to its filing with the U.S. Securities and Exchange Commission as of June 30, 2026. The company disclosed that its settlement negotiations with the commission over the matter had failed. In an October 14 statement, law firm Hagens Berman renewed its call for investors to provide information about their losses in a securities lawsuit involving the company. Investors accuse the company and some of its officers of making materially misleading statements about its business, operations and prospects, according to a report published by Investing.com citing MarketBeat. The company thus faces an investor lawsuit alongside the government case concerning its consumer practices. The company rejected the basis of the government lawsuit and said it intended to defend itself.
The investor action seeks to represent purchasers or holders of the company's securities during the period from August 4, 2025, to July 29, 2026, according to the MarketBeat report published on Investing.com. Their allegations focus on statements the company made about its business, how it managed its operations and its business prospects. The Hagens Berman statement, distributed through GlobeNewswire, was part of a call for investors to contact the firm about the pending case. The firm asked investors to provide information about losses related to the company's securities. The statement carried a disclosure describing it as "attorney advertising." The firm added in the same disclosure that "prior results do not guarantee a similar outcome in any future case."
The Federal Trade Commission accuses Hims & Hers of sharing consumers' health information with Meta, Snap and other parties. The commission said in its statement that the company makes canceling subscriptions "extremely difficult." The government complaint also alleges that the company failed to obtain customers' express informed consent before collecting payments. That allegation was based on the Restore Online Shoppers' Confidence Act, under provisions concerning consumer consent to payment. On cancellation procedures, the complaint says the company added an online subscription cancellation process to its websites in April 2023. It did not, however, add the same process to its mobile apps, according to the government complaint.
The government investigation preceded the lawsuit, with the company disclosing that it received a civil investigative demand from the Federal Trade Commission in October 2023. The commission's docket lists the original complaint as dated July 29, 2026. The case is before the U.S. District Court for the Northern District of California and remains pending, according to the commission's record. Utah and California, represented through the Los Angeles County Counsel, joined the commission in the government lawsuit. The Associated Press reported that the commission had previously brought similar cases over sharing user data without permission. Those cases included online therapy platform BetterHelp and prescription discount service GoodRx.
In its official response to the lawsuit, Hims & Hers said: "We are confident in our position and will vigorously defend ourselves against these baseless allegations." It added that its privacy policy explains to customers that they can choose how their data is used. The company's response rejected the regulator's allegations about its consumer practices. On financial results, the company reported revenue of nearly $753 million in the second quarter of 2026. It said revenue rose 38% from the same period a year earlier. In the market, Investing.com reported that HIMS shares fell 12% during trading on July 29 following the government lawsuit, as of its report's publication during the session.
The government plaintiffs are asking the court for a permanent injunction barring future violations addressed in their complaint. They are also seeking monetary relief and other remedies in the case. The company, for its part, warned in its filing that the accounting provision for the legal matter could change materially in future periods. It said the amount could rise or fall as litigation progresses and additional information becomes available. In the investor lawsuit, November 2, 2026, was set as the deadline to apply for appointment as lead plaintiff. The MarketBeat report published on Investing.com cited law firm Robbins Geller for that deadline.