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Legal Storm Brewing for Hims & Hers Health

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 7/29/2025, 9:19 am ET 7/29/2025, 9:19 am ET | 6 min 6 min read
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Hims & Hers Health Inc.’s stocks have been trading down by -2.42 percent amid a sector-wide health-tech downturn.

  • Investors are grappling with class action lawsuits that allege misleading statements about the company’s collaboration with Novo Nordisk, impacting access to weight-loss drug Wegovy. The suits involve stocks purchased between April 29 and June 23, 2025.

  • Allegations against Hims & Hers Health also include claims of securities fraud, prompting investigations by multiple agencies. These charges focus on potentially illegal activities surrounding the company’s partnership with Novo Nordisk and misleading promotion of products.

  • Andrew Dudum, a key owner, recently sold a substantial chunk of shares. Though Dudum still maintains control over a considerable portion of shares, the sale worth $2.53M on July 16, 2025, hints at internal turbulence in response to legal pressures.

  • The potential fallout from the legal challenges and halted partner collaboration has dampened investor confidence, raising concerns about the company’s long-term strategy and value.

Candlestick Chart

Live Update At 09:19:03 EST: On Tuesday, July 29, 2025 Hims & Hers Health Inc. stock [NYSE: HIMS] is trending down by -2.42%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Recent Financial Overview of Hims & Hers Health

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Hims & Hers Health isn’t just dealing with legal issues—its recent financial reports add another layer of complexity. Operating with a revenue surpassing $1 billion, the company showcases a robust gross margin of 77%. Yet, there’s unrest beneath the surface. Net income does climb to $49.49M for Q1 2025, but with a pretax profit margin at -2%, the underlying challenges are evident.

Stock values have fluctuated wildly, with recent prices hovering between $50 and $59. Investors have been tossed between optimism, buoyed by potential, and skepticism, prompted by erratic market motions. While the company touts a high revenue growth over the past three years, reaching 77.17%, their stock price tells another story.

The legal predicaments looming over the company now threaten this precarious market balance. Class action lawsuits linked to deceptive promotions and collaboration complications have sent alarm bells ringing. For some, these legal encounters mirror larger missteps in corporate governance. For others, it’s a wake-up call to re-evaluate Hims & Hers’ financial viability.

Impact and Analysis of Current Challenges

Amid the storm of legal challenges, a storm that also shakes the trust and confidence of stakeholders, Hims & Hers faces an uphill battle in restoring its market steadiness. Novo Nordisk’s decision to end its alliance dealt a particularly sour blow, leading to a stock plunge and sparking a slew of legal battles. Reports indicate that misleading statements about product authenticity and safety have exacerbated the situation. These issues, if proven true, place the company in a compromised position.

Investors now find themselves navigating a turbulent landscape, considering the company’s legal troubles and the possible suspension of certain operations. Hims & Hers must tread cautiously as the allegations against it continue to sour investor sentiment. This is especially crucial as it impacts the accessibility to products like Wegovy, a major concern in the market discussions.

Andrew Dudum’s decision to shed his shares may reflect an internal acknowledgment of these challenges. Although he remains significantly invested, his actions may spur further questions among stakeholders. As the market digests these legal worries and awaits clarity, anticipation rides high for recovery or further revelations.

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Conclusion and Forward-looking Insights

The road ahead for Hims & Hers Health appears fraught with both challenge and opportunity. With its stock value on the line, guided by the industry’s general sentiment and ongoing investigations, stakeholders will watch nervously to see either a course correction or further decline. The outcomes of these legal entanglements could chart a new direction for the company, influencing strategic pivots and possibly redefining its market perception.

Whether this legal storm persists or passes depends significantly on how Hims & Hers manages its legal standings and reassures its traders. As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.” Remaining calm, transparent, and adaptive will be key in regaining market confidence and stabilizing its financial position. The unfolding saga presents an intriguing narrative in market dynamics and corporate accountability. While questions linger, many will await with bated breath to see how Hims & Hers Health navigates its way out of this turbulence.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”