Hims & Hers Health Tumbles 3.54% as Volume Slides to $770M, Ranks 86th in Activity Amid Regulatory Scrutiny and Shattered Partnership Weigh on Investor Sentiment

On August 25, 2025, Hims & Hers Health (HIMS) closed with a 3.54% decline, trading at a volume of $0.77 billion—a 37.87% drop from the previous day. The stock ranked 86th in trading activity among listed equities. The move follows ongoing regulatory scrutiny and a critical partnership dissolution that has weighed on investor sentiment.

Legal investigations are intensifying against the company. The DJS Law Group is probing potential securities fraud violations, focusing on whether Hims & Hers misled investors or omitted material disclosures. This inquiry was catalyzed by Novo Nordisk’s abrupt termination of a collaboration on June 23, 2025, citing concerns over Hims’ “illegal mass compounding” and “deceptive marketing” practices. Novo Nordisk highlighted risks to patient safety from Hims’ operations, which allegedly circumvented regulations prohibiting large-scale sales of compounded drugs under the guise of personalized medicine. The partnership’s collapse triggered a 31.7% intraday drop in Hims’ shares on June 23, underscoring the reputational and regulatory risks embedded in its business model.

Investors are advised to monitor developments in the legal proceedings, which could lead to class-action lawsuits. The DJS Law Group and other firms are seeking shareholders who purchased Hims’ stock between April 29 and June 22, 2025, to evaluate claims. The ongoing litigation highlights vulnerabilities in Hims’ compliance framework and raises questions about its long-term viability in a highly regulated healthcare market.

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