Hims & Hers Class Action Lawsuit: Overwhelmed and Seething Investors Smack Hims & Hers With a Massive Class Action Lawsuit [2025]

This led to two securities class action lawsuits against Hims & Hers Health, Inc. and several company executives. Novo Nordisk publicly announced they ended the cooperative because of the company’s “illegal mass compounding and deceptive marketing” of weight loss drugs. The stock price took a massive hit, dropping from $64.22 per share on June 20, 2025, to $41.98 per share on June 23, 2025 – a huge loss of $22.24 per share.

Investors who lost money in this most important downturn should know they have until August 25, 2025, to apply as lead plaintiff in this class action. The Hims & Hers class action lawsuit claims investors didn’t know the truth about the company’s marketing practices until Novo Nordisk’s termination announcement brought everything to light.

Hims & Hers faces class action after Novo Nordisk ends partnership

The telehealth company faced trouble after Novo Nordisk suddenly ended their partnership on June 23, 2025. Their collaboration lasted just two months after being announced in late April 2025, and it fell apart amid serious allegations.

Novo Nordisk cites deceptive marketing and illegal compounding

Novo Nordisk ended the partnership with strong accusations against the telehealth provider. The Danish pharmaceutical giant claimed in its announcement that Hims & Hers took part in “illegal mass compounding and deceptive marketing”. They said the company didn’t follow rules that stop mass sales of compounded drugs under what they called the “false guise of personalization”.

The main conflict centered on Hims & Hers selling compounded semaglutide. The company sold these compounded alternatives at $165 per month, which cost much less than branded Wegovy. This practice became an issue after the FDA solved the Wegovy shortage in late April 2025. The law then stopped compounding pharmacies from making and selling unapproved versions after May 22.

Dave Moore, Novo Nordisk’s Executive Vice President of U.S. Operations, made it clear: “When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy”.

Novo Nordisk also raised safety concerns. Their investigation revealed:

• Knock-off drugs’ active ingredients came from Chinese suppliers
• FDA never inspected many of these suppliers
• Inspected facilities often failed drug quality checks

Andrew Dudum, Hims & Hers CEO, fired back at these claims and said Novo Nordisk was “misleading the public”. Dudum said Novo Nordisk tried to force them to “control clinical standards and steer patients to Wegovy regardless of whether it was clinically best for patients”. He added that his company would “refuse to be strong-armed by any pharmaceutical company’s anticompetitive demands”.

Termination announcement triggers investor panic

The news hit the market hard. Hims & Hers stock dropped 34% on June 23, with shares falling to $41.98 from $64.22. Novo Nordisk’s stock also fell by more than 5%.

Financial experts saw this as a vital situation. Citi analyst Daniel Grosslight pointed out that ending the collaboration increased Hims & Hers’ legal risk. Two securities class action lawsuits followed on June 25, 2025, targeting Hims & Hers and some executives.

The Hims & Hers class action lawsuit claims Hims & Hers made false statements and didn’t share important information with investors. They said the company promoted and sold fake Wegovy versions that risked patient safety, which could lead to the end of their Novo Nordisk partnership.

The Novo Nordisk partnership was originally part of Hims & Hers’ big plan to reach $6.5 billion in revenue by 2030. The broken partnership led analysts to predict “a decline in traffic and adverse impact to Hims’ compounding business”.

The stock bounced back somewhat, rising 7% on Friday to reach $49.41. Yet legal and business challenges remained as more investors joined the class action lawsuits.

Stock price plunges over 34% following Hims & Hers lawsuit news

The market brutally punished Hims & Hers Health, Inc. after Novo Nordisk ended their partnership. Investors watched helplessly as the stock crashed amid heavy selling when news broke about the broken partnership and possible legal troubles.

June 23, 2025: Share price drops from $64.22 to $41.98

Hims & Hers stock took a devastating hit on June 23, 2025. The share price crashed by $22.24 or 34.63% and closed at $41.98, down from $64.22 the previous day. This massive drop came right after Novo Nordisk announced they were walking away from their partnership.

Panic selling pushed trading volume to 176 million shares—more than twice the usual amount. The stock started falling early, dropping 22% to $50.02 before the market opened. The slide continued throughout regular trading hours.

The bad news affected Novo Nordisk too. Their shares fell about 6.5% by 1:15 p.m. GMT. This added to earlier losses from disappointing clinical trial results.

The situation showed signs of improvement in the following days. The stock price climbed back to $47.96 by July 1, 2025, though it still dropped 3.79% from its last close. Some investors thought the market had overreacted to the news.

Market reaction reflects investor concern over legal exposure in Hims & Hers lawsuit

The stock’s nosedive showed how worried investors were about both short-term business impacts and future legal risks. The stock was still up 74% for the year, which showed how much growth potential investors had priced in before this dramatic reassessment.

Market analysts pointed out several reasons for investor fears:

1. Revenue implications: The partnership’s end hurt the company’s goal of reaching $6.5 billion in revenue by 2030.
2. Regulatory scrutiny: The FDA or Department of Justice might investigate how the company marketed and sold compounded semaglutide.
3. Competitive pressure: Novo Nordisk might start selling directly to consumers, which could hurt Hims & Hers’ market share.
4. Brand damage: The company’s reputation might suffer after claims about selling potentially unsafe products.

Citi’s financial analysts noted that ending the partnership increases the company’s legal risks. They worried that claims about mass compounding under false personalization might attract more regulatory attention.

Some market watchers think the stock might fall further. They calculate that if Hims & Hers returns to its usual valuation of three times revenue, the stock could drop to around $25.00—another 40% below current levels.

The 34.6% stock plunge means more than just lost revenue. It shows that investors now question the company’s core business model, its regulatory compliance, and future growth after serious allegations from a major pharmaceutical partner.

Hims & Hers lawsuit alleges securities fraud and misleading statements

Several law firms have filed securities class action lawsuits against Hims & Hers Health, Inc. The Hims & Hers class action lawsuit comes after Novo Nordisk’s termination announcement. These complaints target the company and some senior executives who allegedly misled investors about significant aspects of their business.

Claims filed under Sections 10(b) and 20(a) of the Exchange Act

Many class action lawsuits, including Sookdeo v. Hims & Hers Health, Inc. and Yaghsizian v. Hims & Hers Health, Inc., were filed in the U.S. District Court for the Northern District of California. These lawsuits claim violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The claims represent investors who bought Hims & Hers securities between April 29, 2025, and June 22, 2025. Section 10(b) prohibits securities fraud. Section 20(a) establishes liability for controlling persons involved in fraudulent activities.

If you suffered substantial losses and wish to serve as lead plaintiff of the Hims & Hers class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at tmiles@timmileslaw.com.

Allegations include false assurances about FDA compliance

The Hims & Hers class action lawsuit claims Hims & Hers made false statements and left out significant information about their operations during the class period. The main allegations state:

• The company didn’t disclose its “deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk”
• They misrepresented to investors that their sale of compounded semaglutide followed FDA regulations
• They hid the real risk that such practices would end the Novo Nordisk partnership

The Hims & Hers class action lawsuit also points out that Hims & Hers kept selling compounded semaglutide after the FDA declared the Wegovy shortage resolved in April 2025. Federal regulations only allow compounded drugs during shortages or for individual patients.

Compounded semaglutide sales misrepresented to investors

The plaintiffs argue that Hims & Hers misrepresented their partnership with Novo Nordisk. The company allegedly made false claims that:

• Talks with Novo Nordisk would lead to a long-term partnership and continued Wegovy access
• Novo Nordisk approved Hims’ compounded semaglutide products under the “personalization” exception
• They would offer branded Wegovy with compounded semaglutide options to give users more choices

These claims became problematic when Novo Nordisk revealed Hims & Hers had “failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization'”. The Danish pharmaceutical company found that ingredients in knockoff drugs sold by telehealth companies came from Chinese manufacturers without FDA authorization or approval.

Investors urged to act before August 25, 2025 deadline

Time is running out for Hims & Hers investors affected by multiple class action lawsuits. Shareholders won’t pay any upfront costs or expenses since law firms handle these cases on a contingency fee basis.

Lead plaintiff role explained

A lead plaintiff acts as the representative for all class members throughout the litigation. The court usually assigns this role to an investor who has the largest financial stake and meets specific requirements for adequacy and typicality. This representative picks the legal counsel who will work for them and the entire class. You would oversee the lawsuit on behalf of all affected investors, subject to court approval.

How to submit losses and join the class

You qualify to join the Hims & Hers class action lawsuit if you bought company securities between April 29, 2025, and June 23, 2025. Losses during this period automatically make you a class member.

Investors who lost substantial amounts—this is a big deal as it means that $50,000—should think over applying for lead plaintiff status through law firm websites. The process requires you to:

1. Reach out to a participating law firm like the Law Offices of Timothy L. Miles before August 25, 2025
2. Show documentation of your investments and losses
3. Fill out required paperwork for court submission

Note that you can still receive part of any potential recovery without being a lead plaintiff. You’ll remain eligible for settlement or judgment benefits even if you take no action now.