Hims & Hers (HIMS) Drops Amid Reported Details of FTC Investigation, Adding To Investor Scrutiny In Pending Securities Class Action

Associated Press

5 days ago

SAN FRANCISCO, Aug. 15, 2025 (GLOBE NEWSWIRE) -- On August 14, 2025 the price of Hims & Hers Health (NYSE: HIMS) shares significantly dropped in after-hours trading after the financial press reported that the FTC is probing the company's advertising practices and whether it makes it too difficult for customers to cancel subscriptions.
This latest adverse news adds to the company's headaches after pharmaceutical giant Novo Nordisk abruptly decided to cancel its two-month-old collaboration with Hims that was intended to expand the availability of Novo's FDA-approved GLP-1 weight loss drug ('Wegovy®'). Novo's announcement was accompanied by serious accusations that Hims was putting patients' safety at risk and, in turn, triggered the pending securities class action lawsuit against Hims & Hers after the price of its shares plummeted.
Investors with substantial losses have the opportunity (until August 25, 2025) to move the court for appointment as Lead Plaintiff. Shareholder rights firm Hagens Berman is investigating the legal claims and urges Hims & Hers investors who suffered substantial losses to submit your losses now.
Class Period: Apr. 29, 2025 – June 23, 2025
Lead Plaintiff Deadline: Aug. 25, 2025
Visit: www.hbsslaw.com/investor-fraud/hims
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Hims & Hers (HIMS) Securities Class Action
The complaint alleges that Hims made false and misleading statements while failing to disclose crucial information to investors, including that Hims was engaged in the 'deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patients' safety at risk' and that, as a result, there was a substantial risk that the company's collaboration with Novo would be terminated.
Investors learned the truth on June 23, 2025, when Novo Nordisk issued a press release announcing it was ending the partnership, citing Hims' 'deceptive promotion and selling of illegitimate, knockoff versions of Wegovy®.' On this news, the price of Hims stock fell more than 34%.
After the Class Period Hims and Hers Reports Significant Decline in Q2 2025 GLP-1 Sales
The company's total revenue for the second quarter was $545 million, a 7% sequential decline. Revenue from its compounded GLP-1 weight-loss drugs dropped to $190 million, down from $230 million in the previous quarter. Importantly, Hims acknowledged that it would have lower revenue recognized per order specific to its compounded GLP-1 and that its revenue per subscriber slipped to $74 from $84 'primarily as a result of the off-boarding of a portion of our GLP-1 subscribers.'
The company's adverse metrics follow a shift in its business model after the U.S. Food and Drug Administration ended the mass compounding of certain weight-loss drugs. In response, Hims has moved toward selling personalized, smaller-dose compounded versions of drugs like Wegovy® and bragged about, then shortly lost, its collaboration with Novo Nordisk, the maker of Wegovy®, who has publicly characterized Hims' mass personalization of weight loss drugs as an illegal practice.
Hagens Berman Investigates Investor Claims
Hagens Berman is investigating investors' claims. Reed Kathrein, a partner at the firm, stated, 'The decline in GLP-1 drug revenue and subscriber metrics this quarter appears significant and raises questions about whether earlier representations regarding the company's compounded weight-loss drug strategy and the Novo Nordisk partnership may have been misleading to investors, as alleged in the complaint.'
If you invested in Hims & Hers and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Hims & Hers case and our investigation, read more»
Whistleblowers: Persons with non-public information regarding Hims & Hers should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895