Hims & Hers stock tumbles on FTC lawsuit over data sharing

The Federal Trade Commission, joined by Utah and California, sued Hims & Hers for deceptive and unlawful privacy practices. The complaint alleges the telehealth provider shared sensitive consumer health information with third-party advertising platforms despite promising patient privacy. Additionally, the lawsuit claims the company deceived users regarding billing and cancellation processes. Following the announcement of this legal action by the FTC and state authorities, Hims & Hers stock tumbled as the market reacted to the allegations.