Hims & Hers Stock Plunges After FTC Sues over Alleged Privacy Violations

Dow Jones01:34

Shares of Hims & Hers Health sank Wednesday after the Federal Trade Commission filed a lawsuit against the telehealth provider, accusing it of sharing customers' medical information with third-party advertisers.

In a criminal complaint filed in federal court, the FTC -- along with the states of Utah and California -- accuses Hims of "deceptive and unlawful privacy practices," including sharing sensitive details about a patient's health with Snap and Facebook parent Meta Platforms.

Moreover, the FTC alleged, Hims fails to disclose that it charges consumers for prescriptions almost immediately after they submit an intake form. The agency further claims that Hims makes it difficult for consumers to cancel subscriptions and misleads consumers about keeping their information private.

Barron's reached out to Hims for comment on the lawsuit.

The stock plunged 12% to $25.80 on Wednesday, pacing toward its lowest close in two months, according to Dow Jones Market Data.

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