Securities Fraud Investigation: Hims & Hers Health, Inc. and Novo Nordisk Terminate Collaboration

Hims & Hers Health, Inc. is being investigated for securities fraud violations, focusing on misleading statements and failure to disclose information. The investigation follows a press release from Novo Nordisk terminating its collaboration with Hims & Hers due to concerns about their illegal mass compounding and deceptive marketing. Shares of Hims & Hers fell by 31.7% in response.

Hims & Hers Health, Inc. (NYSE: HIMS) is under investigation for potential securities fraud violations, with a focus on misleading statements and failure to disclose pertinent information. The investigation, led by the DJS Law Group, follows a press release from Novo Nordisk announcing the termination of its collaboration with Hims & Hers due to concerns over illegal mass compounding and deceptive marketing [1].

On June 23, 2025, Novo Nordisk terminated its partnership with Hims & Hers, citing the latter's failure to adhere to laws prohibiting mass sales of compounded drugs under the guise of personalization. This led to a 31.7% drop in Hims & Hers' shares in afternoon trading [1].

The DJS Law Group is investigating claims on behalf of investors who purchased Hims & Hers' securities between April 29, 2025, and June 23, 2025. The firm specializes in securities class actions and corporate governance litigation [1].

The Schall Law Firm, another firm representing investors, has also announced a class action lawsuit against Hims & Hers for securities fraud violations. Investors who purchased Hims & Hers' securities during the specified period are encouraged to contact the Schall Law Firm before August 25, 2025 [2].

The termination of the Novo Nordisk partnership has reignited discussions about compounded GLP-1 drugs and the potential for legal battles. Analysts have noted that the termination could reduce consumer traffic and drug compounding sales for Hims & Hers, potentially opening the company up to further litigation [3].

Hims & Hers' stock fell by 35% on the day Novo Nordisk terminated the partnership, partly wiping out gains made after the deal was announced in April. The termination could also impact the company's reputation and credibility, which may affect future partnerships and sales [3].

The investigation and potential lawsuit highlight the importance of transparency and compliance in the healthcare sector. Investors should remain vigilant and consult with legal professionals to understand their rights and potential claims.

References:

[1] https://www.prnewswire.com/news-releases/hims--hers-health-inc-investigated-for-securities-fraud-violations---contact-the-djs-law-group-to-discuss-your-rights--hims-302505181.html
[2] https://www.morningstar.com/news/pr-newswire/20250715la30386/hims-investors-have-opportunity-to-lead-hims-hers-health-inc-securities-fraud-lawsuit-with-the-schall-law-firm
[3] https://www.biospace.com/business/novo-nordisks-termination-of-hims-hers-deal-reignites-compounding-row