Home›Earnings›Results›Hims & Hers drops 6.7% amid FTC and securities lawsuits

Hims & Hers drops 6.7% amid FTC and securities lawsuits

Shares of Hims & Hers have fallen more than 45% over the past year, extending pressure tied to an August earnings miss and expanding legal scrutiny.

Reported · Written up by our desk · Results

Hims & Hers Health shares fell 6.7% on Wednesday, Sept. 23, as investors weighed fallout from an August earnings report and mounting legal pressure.

MarketBeat Ratings reports the company is facing a joint federal lawsuit, filed in late July by the U.S. Federal Trade Commission, the Utah Division of Consumer Protection, and Los Angeles County Counsel, alleging that Hims & Hers shared consumers’ sensitive health information with third-party advertising platforms including Meta Platforms and Snap despite promising patient privacy.

The stock also faces a new securities class action filed earlier in September, adding to worries after Hims & Hers missed Q2 earnings, according to MarketBeat Ratings. The outlet also notes the shares are down more than 12% year to date, including nearly a 26% decline from the stock’s YTD high on July 6, and more than 45% over the past year.

MarketBeat Ratings says the company disputes the FTC and other allegations and has said it intends to respond, as the legal actions and earnings setback continue to weigh on sentiment.

More like this

Sources