Hims & Hers stock fell 10% after the U.S. Federal Trade Commission sued the telehealth company over alleged health data sharing and billing practices, according to CNBC.
Key facts
- Hims & Hers shares fell 10% following the news.
- The FTC filed a lawsuit against the company.
- Allegations include sharing health data with Meta and Snap.
- The suit also targets billing practices and subscription cancellations.
Shares of telehealth company Hims & Hers fell 10% on July 29, 2026, after the U.S. Federal Trade Commission filed a lawsuit against the firm, according to CNBC.
The FTC’s suit centers on the company’s alleged handling of consumer health data. According to CNBC, the regulator claims Hims & Hers shared health data with technology companies Meta and Snap.
The lawsuit also raises concerns about the company’s billing practices, CNBC reported. Regulators are additionally scrutinizing how the company managed subscription cancellations.
The market reaction was swift, with the stock declining 10% amid the news of the legal action. The drop reflects investor concern about the potential financial and reputational consequences of the FTC’s allegations.
The report from CNBC did not detail any response from Hims & Hers to the lawsuit, nor did it specify the potential penalties the company could face if the allegations are proven.
Why it matters
Health data privacy is an increasing concern for consumers who use telehealth platforms, and regulatory action against a major provider signals heightened scrutiny of the industry. The case could affect how digital health companies handle sensitive personal information and manage subscription billing.
Frequently asked questions
Why did Hims & Hers stock fall?
According to CNBC, shares fell 10% after the FTC filed a lawsuit against the company over alleged health data sharing, billing practices and subscription cancellations.
What does the FTC allege in its lawsuit?
CNBC reported that the FTC alleges Hims & Hers shared health data with Meta and Snap, and raised concerns about the company's billing practices and subscription cancellations.
Which companies did Hims & Hers allegedly share data with?
According to CNBC, the FTC alleges the company shared health data with Meta and Snap.