FTC and States Sue Hims & Hers Over Alleged Sharing of Sensitive Health Data
HIMS sits 91% above its 52-week low of $13.74.
Summary
The FTC, Utah, and California sued Hims & Hers, alleging the telehealth provider shared consumers' sensitive health information with third-party ad platforms despite promising privacy, and also targeting deceptive billing and cancellation practices. Hims & Hers responded that the FTC lawsuit disregards substantial evidence provided during a nearly three-year investigation, ignores established state laws and industry standards in telehealth, and contorts the law to try to manufacture claims. The lawsuit introduces significant legal and reputational risk, potentially leading to fines, operational restrictions, and loss of customer confidence. It follows a period of financial strain, including a $92.1M Q1 net loss and a recent $402.5M convertible note issuance. The outcome could materially impact the company's ability to attract and retain users.
At the time of this announcement, HIMS was trading at $26.18 on NYSE in the Life Sciences sector, with a market capitalization of approximately $6.1B. The 52-week trading range was $13.74 to $70.43. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.