Legal Scrutiny Increases for Hims & Hers Health Following Price-Target Reduction

• Hims & Hers Health, Inc. (NYSE: HIMS) faces a federal lawsuit concerning its billing, subscription-cancellation, and health-data practices.
• Barclays analyst Glen Santangelo lowered his price target for Hims & Hers to $35 from $39, representing approximately 6.61% potential upside from the cited share price of $32.83.
• Kaplan Fox & Kilsheimer LLP and Berger Montague PC have announced separate investigations into potential securities-law violations and possible breaches of fiduciary duties. These investigations do not constitute findings of wrongdoing.

Hims & Hers Health is a telehealth company that provides access to online medical consultations, prescription treatments, over-the-counter products, and personal-care products. Its services cover areas including weight management, sexual health, hair loss, dermatology, and mental health.

On August 20, 2026, Barclays analyst Glen Santangelo lowered his price target for Hims & Hers to $35 from $39. With the shares trading at $32.83 at the time, the new target represented approximately 6.61% potential upside. An analyst’s price target reflects an estimate and does not guarantee that the stock will reach that price.

The price-target reduction came amid regulatory and legal scrutiny. On July 29, 2026, the Federal Trade Commission, joined by Utah and California through the Los Angeles County Counsel, filed a lawsuit against Hims & Hers in the U.S. District Court for the Northern District of California.

According to the FTC’s official announcement, the complaint alleges that Hims & Hers failed to disclose clearly that customers could be charged for prescriptions shortly after submitting an intake form. Regulators also allege that the company enrolled customers in recurring subscriptions, made cancellations unnecessarily difficult, and shared sensitive health information with advertising platforms such as Meta Platforms, Inc. (NASDAQ: META) and Snap Inc. (NYSE: SNAP) despite making privacy assurances.

These claims remain allegations, and the court has not determined that Hims & Hers violated the law. In its official response, the company rejected the allegations as baseless, said the lawsuit disregarded evidence it had provided during the FTC’s investigation, and stated that it would defend itself vigorously.

CEO Andrew Dudum subsequently argued that regulators did not fully understand the company’s healthcare model. He also suggested that the FTC was more interested in generating publicity than reaching an agreement. These comments represent the company’s position and do not resolve the allegations.

Kaplan Fox & Kilsheimer LLP has separately announced an investigation into potential securities-law violations involving Hims & Hers. The firm has not announced that a court or regulator found the company liable for securities fraud.

Berger Montague PC is investigating whether the company’s board potentially breached its fiduciary duties in overseeing the alleged billing, cancellation, and health-data practices. According to Berger Montague, its investigation remains pending. A private law firm’s investigation is not equivalent to a filed lawsuit, regulatory action, or finding of liability.