Hims & Hers Health Litigation Crisis: Navigating Investor Risks and Legal Deadlines

The collapse of Hims & Hers Health's (NYSE: HIMS) partnership with Novo Nordisk A/S—manufacturer of the blockbuster weight-loss drug Wegovy—and the subsequent surge of securities class action lawsuits have created a seismic shift in the company's valuation and investor confidence. For shareholders who acquired HIMS stock between April 29 and June 23, 2025, the risks are now acute, with a rapidly approaching August 25 deadline to secure participation in litigation that could determine their financial recovery. This article dissects the material misrepresentations at the heart of the lawsuits, the stock's dramatic decline, and the actionable steps investors must take to mitigate losses.

The Alleged Material Misrepresentations: A Recipe for Disaster

The lawsuits, filed in the U.S. District Court for the Northern District of California, accuse Hims & Hers of systematically misleading investors about its compliance with FDA regulations and the stability of its partnership with Novo Nordisk. Key claims include:

1. Deceptive Sales of Counterfeit Wegovy: Hims & Hers allegedly sold knockoff versions of Wegovy using unapproved, foreign-sourced semaglutide (the drug's active ingredient), violating FDA guidelines. These counterfeit drugs, marketed under the guise of “personalized” compounding, were linked to safety risks and regulatory violations.
2. Omission of Partnership Risks: Despite internal knowledge of Novo Nordisk's growing concerns over Hims & Hers' practices, the company failed to disclose these risks, falsely assuring investors of the partnership's strength.
3. Misleading Financial Projections: By obscuring the vulnerability of its revenue model—reliant on Wegovy sales—the company inflated investor expectations about growth prospects.

The result was a catastrophic unraveling: when Novo Nordisk terminated the partnership on June 23, 2025, HIMS shares

plummeted by 34.6%, dropping from $64.22 to $41.98—a loss of over $1.2 billion in market cap in a single day.

The August 25 Deadline: A Lifeline for Investors

The lawsuits, captioned Sookdeo v. Hims & Hers Health, Inc. and Yaghsizian v. Hims & Hers Health, Inc., are proceeding under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors who purchased HIMS stock during the Class Period (April 29–June 23, 2025) must act swiftly to preserve their rights:

• Lead Plaintiff Deadline: August 25, 2025, is the cutoff to file motions to seek appointment as lead plaintiff. This role carries significant influence over litigation strategy and settlement terms.
• Recovery Potential: A successful class action could recover losses tied to the stock's post-termination collapse. However, missing the deadline forfeits eligibility entirely.

Why the Legal Timeline Matters Now More Than Ever

The stakes are high. Hims & Hers' stock remains volatile, trading at $45.50 as of June 19, 2025—still 29% below its pre-termination peak. Analysts warn of further downside if the company's valuation multiple reverts to its historical average of 3x revenue (versus its current 7x). This could push shares to $25, a 45% drop from current levels.

Moreover, the FDA may investigate Hims & Hers' supply chain for compounded drugs, adding regulatory risk. The lawsuits also name senior executives as defendants, amplifying reputational damage and potential personal liability.

Strategic Steps for Investors

1. Verify Holdings: Confirm if you purchased HIMS shares between April 29 and June 23, 2025.
2. Consult Legal Counsel: Engage with law firms specializing in securities class actions, such as Kessler Topaz or Robbins Geller, which are representing investors. These firms work on a contingency basis, requiring no upfront fees.
3. Act Before August 25: Submit motions to join the litigation promptly. Delays could disqualify you from recovery.

The Bottom Line: Act Now or Risk Irreversible Losses

The Hims & Hers saga underscores a critical truth: investor due diligence must extend beyond financial metrics to include legal and regulatory risks. The August 25 deadline is not merely a procedural hurdle—it is a lifeline for investors seeking accountability for material misstatements that cost them dearly.

For holders of HIMS shares during the Class Period, inaction is not an option. The clock is ticking.

Risk Disclosure: This article is for informational purposes only and does not constitute financial advice. Consult a licensed professional before making investment decisions.