Hims & Hers Faces Growing Legal Pressure Amid Novo Nordisk Partnership Collapse

Hims & Hers Health is facing a legal storm following the collapse of its partnership with pharmaceutical giant Novo Nordisk. The company is being sued by shareholders and investors over allegations of misleading claims and deceptive marketing practices related to the weight-loss drug Wegovy. Hims' legal risk profile is higher than the industry average, and the stock has a Hold consensus rating with a 20.88% downside potential.

Hims & Hers Health, Inc. (NYSE: HIMS) is facing a legal storm following the collapse of its partnership with pharmaceutical giant Novo Nordisk. The company is being sued by shareholders and investors over allegations of misleading claims and deceptive marketing practices related to the weight-loss drug Wegovy. Hims' legal risk profile is higher than the industry average, and the stock has a Hold consensus rating with a 20.88% downside potential.

The legal troubles began when Novo Nordisk terminated its collaboration with Hims & Hers due to concerns about the company's illegal mass compounding and deceptive marketing practices [1]. This led to a significant decline in Hims & Hers' stock price, with shares falling by 31.7% in afternoon trading on June 23, 2025 [1].

The DJS Law Group and the Schall Law Firm have both filed class action lawsuits against Hims & Hers on behalf of investors who purchased the company's securities between April 29, 2025, and June 23, 2025 [1, 2]. These lawsuits allege that Hims & Hers made false and misleading statements and failed to disclose crucial information to investors, leading to a decline in the company's stock price [2].

The lawsuits also allege that Hims & Hers was engaged in the deceptive promotion and selling of knockoff versions of Wegovy, putting patient safety at risk and jeopardizing the collaboration with Novo Nordisk [2]. Investors have until August 25, 2025, to apply to the court to be appointed lead plaintiff in the case [2].

Hims & Hers Health, Inc. has not yet responded to the allegations, but the company is expected to file a response in the coming days. The outcome of the lawsuit could have significant implications for the company's stock price and reputation.

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].

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