Hims & Hers hit with investor lawsuits after Novo ends Wegovy partnership
A group of shareholders sued Hims on Monday in federal court in San Francisco, accusing its board and senior executives of making false and misleading statements about its financial condition and operations. The case was filed as a so-called derivative lawsuit on behalf of the company.
The lawsuit follows two securities class actions filed by Hims investors in the same court last month, seeking damages over the drop in stock price after Novo in late June ended what the companies had initially described as a long-term collaboration designed to make obesity care and treatment more affordable and accessible.
Hims, Novo and the lawyers who filed Monday's lawsuit did not immediately respond to requests for comment. Danish drugmaker Novo is not a defendant in the lawsuits.
Founded in 2017, San Francisco-based Hims provides health and wellness products focused on weight loss, sexual and mental health and hair loss.
Novo on June 23 said it was ending their partnership that began in late April, citing Hims' alleged improper marketing and sales of Wegovy copies. Novo accused Hims of 'deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk.'
Hims CEO Andrew Dudum responded, opens new tab in a post on X that day that accused Novo management of misleading the public and making anticompetitive demands 'that infringe on the independent decision making of providers and limit patient choice.'
Hims shares fell $22.24, or over 34%, after Novo's announcement, declining from $64.22 per share on June 20 to close at $41.98 per share on June 23. The stock closed on Monday at $52.03 a share.
The tight supply of Wegovy in the United States had allowed Hims and others to sell cheaper, compounded versions of the drug, known chemically as semaglutide.
The U.S. Food and Drug Administration in February removed Wegovy from the agency's shortage list. Hims said the decision meant it could not guarantee continued sales of compounded semaglutide.
The case is Steve Jones v. Andrew Dudum, U.S. District Court, Northern District of California, No. 3:25-cv-05866-AGT.
For plaintiff: Shane Rowley of Rowley Law PLLC, and Francis "Casey" Flynn Jr. of Law Office of Francis J. Flynn Jr
For defendants: No appearances yet
Read more:
Novo, Hims & Hers engage in war of words after Wegovy deal falls apart
US judge upholds FDA's removal of Ozempic, Wegovy from drug shortage list
Novo Nordisk to sell Wegovy through telehealth firms to cash-paying US customers
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