Latest news with #FTCprobe
Associated Press
a day ago
- Business
- Associated Press
Hims & Hers (HIMS) Drops Amid Reported Details of FTC Investigation, Adding To Investor Scrutiny In Pending Securities Class Action
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: Contact the Firm Now: [email protected] 844-916-0895 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 Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895
Yahoo
2 days ago
- Business
- Yahoo
HIMS: Hims & Hers Shares Sink After FTC Probe Details Emerge
Aug 15 - Hims & Hers Health (NYSE:HIMS) slipped about 3% in early trading on Friday after Bloomberg published fresh details about a Federal Trade Commission probe into the company's business practices. The report says the FTC opened an inquiry following consumer complaints that Hims & Hers makes it hard for customers to cancel subscriptions and questions the company's advertising practices. Warning! GuruFocus has detected 4 Warning Sign with HIMS. Hims & Hers first told investors about a regulatory review in July 2024, but Bloomberg's report adds new color on what regulators are investigating. According to people familiar with the matter, the agency looks at cancellation flows, disclosure language, and whether marketing crosses legal lines. The company hasn't released a new statement tied to the Bloomberg story. For investors, the short-term hit reflects the subscription model's vulnerability: when regulators probe cancellation or billing, churn can rise and trust can fall. Analysts will watch complaint volumes, any formal FTC subpoenas, and whether the firm needs to change its renewal mechanics or face penalties. Until that clarity arrives, expect volatility around HIMS shares as traders price regulatory risk into the stock. Based on the one year price targets offered by 13 analysts, the average target price for Hims & Hers Health Inc is $51.22 with a high estimate of $85.00 and a low estimate of $28.00. The average target implies a upside of +8.67% from the current price of $47.13. Based on GuruFocus estimates, the estimated GF Value for Hims & Hers Health Inc in one year is $36.25, suggesting a downside of -23.09% from the current price of $47.13. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
HIMS: Hims & Hers Shares Sink After FTC Probe Details Emerge
Aug 15 - Hims & Hers Health (NYSE:HIMS) slipped about 3% in early trading on Friday after Bloomberg published fresh details about a Federal Trade Commission probe into the company's business practices. The report says the FTC opened an inquiry following consumer complaints that Hims & Hers makes it hard for customers to cancel subscriptions and questions the company's advertising practices. Warning! GuruFocus has detected 4 Warning Sign with HIMS. Hims & Hers first told investors about a regulatory review in July 2024, but Bloomberg's report adds new color on what regulators are investigating. According to people familiar with the matter, the agency looks at cancellation flows, disclosure language, and whether marketing crosses legal lines. The company hasn't released a new statement tied to the Bloomberg story. For investors, the short-term hit reflects the subscription model's vulnerability: when regulators probe cancellation or billing, churn can rise and trust can fall. Analysts will watch complaint volumes, any formal FTC subpoenas, and whether the firm needs to change its renewal mechanics or face penalties. Until that clarity arrives, expect volatility around HIMS shares as traders price regulatory risk into the stock. Based on the one year price targets offered by 13 analysts, the average target price for Hims & Hers Health Inc is $51.22 with a high estimate of $85.00 and a low estimate of $28.00. The average target implies a upside of +8.67% from the current price of $47.13. Based on GuruFocus estimates, the estimated GF Value for Hims & Hers Health Inc in one year is $36.25, suggesting a downside of -23.09% from the current price of $47.13. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
