Hims & Hers Health’s 950M in Volume Ranks 85th, Shares Tumble 6.47% as Lawsuit Threatens Investor Confidence

On August 19, 2025, Hims & Hers Health (HIMS) reported a trading volume of $0.95 billion, ranking 85th among stocks in terms of activity. The company’s shares closed down 6.47%, reflecting heightened investor caution amid ongoing legal challenges.

A class-action lawsuit was filed against Hims & Hers Health, alleging securities fraud related to alleged deceptive practices between April 29 and June 23, 2025. The complaint claims the company misrepresented its business practices, including the promotion of unauthorized versions of Wegovy® and concealing risks to its partnership with Novo Nordisk. These allegations could undermine investor confidence and expose the firm to regulatory scrutiny.

The lawsuit further contends that the company’s public statements about its operations and partnerships were materially misleading. Investors affected during the specified period have until August 25 to seek inclusion in the case. Legal experts note that such lawsuits often lead to prolonged litigation, potentially impacting operational focus and financial stability.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 showed a 1.98% average daily return, with a cumulative 7.61% gain over 365 days. However, the approach faced a maximum drawdown of -29.16%, underscoring its vulnerability during market downturns. The Sharpe ratio of 0.94 indicates acceptable risk-adjusted returns, though volatility remains a key concern.