HIMS Rises 12.8% After FTC Privacy & Billing Lawsuit News
Hims & Hers Health (NYSE: HIMS) rose +12.8% on Aug 19, 2026 after news of a major FTC lawsuit alleging privacy and subscription-billing violations, alongside a separate investor-focused probe opened by Hagens Berman.
What Hims & Hers announced
The news centers on a lawsuit brought by the FTC (and states, per the release) accusing Hims & Hers of improper handling of sensitive health data and deceptive subscription practices. Regulators allege the company shared consumer health information through tools like embedded tracking pixels and customer list matching, including claims involving platforms such as Meta (Facebook) and Snap.
The complaint also alleges violations of the Restore Online Shoppers' Confidence Act (ROSCA), saying consumers were enrolled into recurring subscriptions without informed consent. According to the allegations, some consumers were billed for prescriptions almost immediately after completing an intake form—before any consultation with a medical provider—while cancellation was made difficult through dark patterns and hidden options.
Separately, shareholder-rights firm Hagens Berman said it opened an investigation into whether Hims & Hers engaged in unlawful business practices and whether any such conduct could have violated U.S. securities laws.
What it means for Hims & Hers
If the FTC’s allegations hold, the case could force changes in how Hims & Hers markets subscriptions, obtains consent, handles cancellations, and uses tracking or matching tools tied to patient journeys. That could raise compliance costs and add operational friction to parts of the company’s onboarding and retention flows that regulators say were designed to keep people from terminating subscriptions.
The privacy allegations also put a spotlight on how health-related data is collected, shared, and measured in digital marketing—an area that can become a reputational issue even before any legal outcome is reached. Meanwhile, the Hagens Berman investigation signals potential follow-on pressure from investors focused on corporate compliance and disclosure.
How the stock reacted
HIMS traded higher throughout the day, starting with an early pop and building into a strong close.
| Window | Move |
|---|---|
| 5 min | +3.1% |
| 10 min | +2.4% |
| 30 min | +5.4% |
| 1 hour | +4.7% |
| end of day | +12.8% |
On a market-adjusted basis, HIMS was up +12.9% versus SPY the same day.