(Updates with Hims' official statement in the third paragraph.)
Hims & Hers Health (HIMS) is being sued by the US Federal Trade Commission, the State of California, and the Utah Division of Consumer Protection, for allegedly sharing users' data with Meta Platforms (META), Snap (SNAP) and other online advertising companies, court documents show.
The suit, filed in the US District Court for the Northern District of California, also alleges Hims charged consumers unwanted prescription medication subscriptions without their consent, and enrolls consumers in subscription plans "almost immediately after receiving consumers' medical intake forms."
"This lawsuit disregards substantial evidence we provided the FTC during its nearly three-year investigation, ignores established state laws and industry standards in telehealth, and contorts the law to try to manufacture claims," Hims said on X. "This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense. We are confident in our position and will vigorously defend ourselves against these baseless claims."
Hims & Hers shares were down over 11% in Wednesday trading.
Price: $25.68, Change: $-3.65, Percent Change: -12.43%