Hims & Hers Health (HIMS) is under growing legal pressure following the collapse of its partnership with pharmaceutical giant Novo Nordisk (NVO). The fallout has led to a wave of securities fraud lawsuits, alleging that HIMS misled investors and engaged in deceptive marketing practices about the weight-loss drug Wegovy.
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It must be mentioned that Novo Nordisk ended the partnership on June 23, 2025, citing “illegal mass compounding” and “deceptive marketing” that put patient safety at risk.
Shareholders Target Hims over Misleading Claims
A group of shareholders sued Hims on Monday in San Francisco federal court, claiming its board and top executives misled investors about the company’s finances and operations. The lawsuit was filed on behalf of the company, known as a derivative case.
The lawsuit comes after two similar cases were filed last month by Hims investors. They seek compensation for the 30% stock drop after NVO ended its planned long-term partnership with HIMS.
Prior to these, a class action lawsuit was filed against HIMS with the key focus on the sale of its compounded versions of semaglutide, the active ingredient in Wegovy. The plaintiffs claim the company marketed these knockoff versions as “personalized” treatments, even though FDA rules ban mass sales of compounded drugs when the original brand-name product is not in short supply.
HIMS’ Risk Analysis
With multiple lawsuits piling up against Hims & Hers, it’s worth taking a closer look at the company’s legal risk profile.
The TipRanks’ Risk Analysis tool shows that Hims’ legal and regulatory risk exposure is higher than the industry average. Legal and regulatory risks account for 23.8% of its total risks, higher than the industry average of 21.9%.
Is HIMS Stock a Good Buy?
Turning to Wall Street, HIMS stock has a Hold consensus rating based on one Buy, seven Holds, and two Sells assigned in the last three months. At $41, the average Hims & Hers stock price target implies a 20.88% downside potential.
