Hims & Hers Health, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in securities fraud cases, is investigating potential claims against Hims & Hers Health, Inc. (NYSE: HIMS).

If you purchased or held Hims & Hers Health, Inc. securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Hims & Hers Health, Inc.

Hims & Hers Health, Inc. is a telehealth company that offers a range of health and wellness services, with a particular focus on prescription medications and treatments delivered through its online platform. The company has become a household name for its direct-to-consumer approach, providing access to products and care for conditions such as hair loss, sexual health, mental health, and more.

In recent years, Hims & Hers Health, Inc. expanded its business into the weight-loss market, specifically by offering compounded GLP-1 weight-loss drugs. This move generated significant investor interest and contributed to a rapid rise in the company's stock price. The company also touted a partnership with Novo Nordisk to provide FDA-approved Wegovy, further fueling market optimism.

However, the company’s aggressive expansion into the weight-loss sector, as well as its public statements about the legality and sustainability of its offerings, have come under intense scrutiny following a series of regulatory, business, and partnership developments.

What happened?

The investigation centers on whether HIMS made misleading statements or omitted critical information regarding its weight-loss drug business, partnerships, and financial forecasts. Investors are examining whether the company’s public communications accurately reflected the true risks and regulatory landscape facing its compounded GLP-1 products.

On May 20, 2024, Hims & Hers Health announced it would begin offering compounded GLP-1 weight-loss injections. This announcement caused shares to jump about 27%, marking the start of a period of significant stock price inflation and heightened investor expectations.

Throughout 2024 and into 2025, the company made several statements promoting a “long-term collaboration” with Novo Nordisk to offer FDA-approved Wegovy on its platform. However, only weeks later, Novo Nordisk publicly accused Hims & Hers Health, Inc. of “illegally compounding and deceptively marketing unauthorized” copies of Wegovy and ultimately terminated the partnership. Novo’s press release went so far as to describe Hims’s products as “illegitimate, knockoff” versions of the drug, contradicting Hims’s repeated assurances of legitimacy and compliance.

The company also issued highly optimistic financial forecasts, including a projected $725 million in 2025 weight-loss sales. These forecasts relied on the continued legality and availability of compounded Wegovy, even as regulatory developments made such products increasingly untenable. After the FDA resolved the semaglutide shortage on Feb. 21, 2025, Hims warned it might have to stop selling compounded Wegovy, causing shares to fall about 19% on Feb. 24, 2025. The next day, analyst skepticism regarding the company’s weight-loss business and forecasts triggered another 18% stock drop.

Further, after the FDA’s formal ban on compounded Wegovy took effect in late May 2025, Hims announced a 4% workforce reduction, and shares dropped another 14%.

The most dramatic event occurred on June 23, 2025, when Novo Nordisk publicly ended its collaboration with Hims, citing “deceptive marketing and mass sales of compounded” unauthorized Wegovy. This revelation led to a single-day stock crash of about 32%, erasing tens of dollars per share and billions in market value. Notably, this drop was not caused by broader market forces, as the S&P 500 and Nasdaq were rising that day, highlighting the company-specific nature of the loss.

The investigation also points to potential misrepresentations regarding the company’s compounding pharmacy, Apostrophe. In March 2025, Hims abruptly shut down Apostrophe, claiming the closure was unrelated to its weight-loss drug business, even though Apostrophe was central to producing the compounded drugs at issue.

Insider trading activity is also under scrutiny. CEO Andrew Dudum sold approximately 173,000 shares on June 16–17, 2025 at $56–$59 per share, netting around $10 million just days before the June 23 disclosure. While these sales were made under a pre-arranged 10b5-1 plan, the timing and volume are notable, especially given the absence of significant insider purchases during the same period.

The alleged harm to investors is substantial. The stock price, which had reached an all-time high of $68.74 on Feb. 19, 2025, fell sharply with each corrective disclosure. The June 23, 2025 drop alone erased an estimated $20–$25 per share in value, amounting to billions of dollars in aggregate losses for shareholders.

Your Rights and Next Steps

This is an active investigation into potential securities law violations by Hims & Hers Health, Inc. If you purchased or held HIMS securities between May 20, 2024 and June 23, 2025 and suffered financial losses, you may have important legal rights.

Lawyers are ready to help investors understand whether they may be eligible to join a potential class action lawsuit.

If a class action is filed, eligible investors could seek to recover their losses through the legal process. Acting promptly is important to ensure that all rights are preserved and that investors are included in any future recovery.

You May Be Entitled to Compensation

If you purchased or held Hims & Hers Health securities and suffered losses during the proposed class period, you may be eligible to join this securities investigation. Time is of the essence, as securities investigations and any resulting class actions are subject to strict deadlines.

To learn more about your rights and to participate in the investigation, complete the below form. Lawyers are ready to help evaluate your claim and guide you through the next steps.