Hims & Hers Faces Legal Reckoning After Partnership Collapse

Hims & Hers Health, Inc. finds itself navigating a severe crisis as a major partnership dissolution and a wave of shareholder litigation converge, threatening significant value destruction for its investors. The telehealth company, once celebrated for its growth, is now embroiled in serious legal and operational challenges that have sent its equity into a tailspin.

Partnership Abruptly Terminated by Novo Nordisk

The situation escalated dramatically on June 23, 2025, when Danish pharmaceutical titan Novo Nordisk severed its ties with Hims & Hers. The termination was not amicable; Novo Nordisk issued a scathing public justification for its decision. The partner accused Hims & Hers of a “failure to adhere to laws prohibiting the mass sale of compounded medications under the false pretense of ‘personalization’.”

Adding a grave dimension to the allegations, Novo Nordisk expressed specific concerns that the copycat versions of drugs sold by the telehealth platform might be formulated with “unsafe and illegal foreign ingredients,” directly challenging the safety and legitimacy of its products.

Shareholder Class Action Gains Momentum

In the wake of these events, a class action lawsuit is moving forward, with a critical deadline for affected investors looming. Shareholders have until August 25 to file as lead plaintiffs in the ongoing proceedings. The litigation centers on accusations that the company engaged in a campaign to mislead the market.

Should investors sell immediately? Or is it worth buying Hims & Hers?

The core legal claim alleges that Hims & Hers “promoted and sold misleading illegitimate copycat versions of Wegovy® that endangered patient safety.” The class encompasses all investors who acquired securities between April 29 and June 23, 2025—the period during which the company is alleged to have made false and misleading statements concerning its business operations.

Stock Plunge Erodes Market Value

The market’s reaction to the twin blows of the lawsuit and the terminated alliance was swift and severe. The equity experienced a devastating sell-off immediately following the June 23 announcement from Novo Nordisk. Shares cratered by more than 34% in a single session, a massive decline that wiped out a substantial portion of the company’s market capitalization.

Trading volume surged to extraordinary levels as the price plummeted by $22.24 to close at $41.98. The stock remains under intense pressure as the full implications of the shattered partnership and the progressing legal battle continue to unfold, casting a long shadow over the company’s future prospects.