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HIMS

Judge signals FTC case against Hims is unlikely to be dismissed

Sources (3)
  • Bad news: At the 30 Oct conference the judge said dismissal is unlikely, so the case will probably go to discovery.
  • Bad news: The $62.5 million fine is already provisioned; the real risk is injunction terms limiting health data sent to ad platforms such as Meta.
  • Neutral: Q3 results are due on 9 Nov after the close.

What we watchThe injunction terms on health data sent to advertising platforms, and legal costs in the 9 Nov results.

Read the full notes

At the first case management conference on 30 Oct, the judge in the FTC's case against Hims signalled that dismissal is unlikely. Hims's defence that its privacy policy already disclosed the data sharing is unlikely to survive scrutiny of the complaint. The case will probably move to discovery, with settlement leverage favouring the FTC.

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The fine is not the real issue, since $62.5 million has already been provisioned. The thing to watch is the injunction terms: if they restrict sending health data back to advertising platforms such as Meta, customer acquisition efficiency and the marketing expense ratio would take a direct hit. Compliance risks are stacking up: the FTC case, the securities class action (lead plaintiff deadline 2 Nov) and the peptide policy, so regulatory uncertainty runs into early 2027.

Key evidence

  • At the first case management conference on 30 Oct in the FTC's case against Hims, brought with Utah and Los Angeles County (US District Court for the Northern District of California, case no. 3:26-cv-07871, Judge Vince Chhabria), the judge said dismissal was unlikely. Source: MLex, same day (paywalled)
  • On 22 Oct Hims moved to dismiss all nine counts. Its core defence is that its privacy policy states that data may be shared with advertising partners, and it attached more than 500 pages of policy text
  • The formal hearing on the motion to dismiss is set for 7 Jan 2027, and the plaintiffs must file their response by 25 Nov
  • About $62.5 million has been provisioned for the fine. The real risk is the injunction terms restricting the return of health-related data to advertising platforms such as Meta
  • Three compliance issues are stacking up: the FTC case, the securities class action (lead plaintiff deadline 2 Nov) and the peptide policy (which can itself be withdrawn)

Catalysts to watch

  • 2 Nov: lead plaintiff deadline in the securities class action
  • 9 Nov: Q3 results after the close, covering legal costs, contingent liability disclosures and marketing expense as a share of revenue
  • 25 Nov: FTC plaintiffs file their response
  • 7 Jan 2027: formal hearing on the motion to dismiss
  • The judge's specific reasons, once the court transcript is public
  • Whether the case enters discovery and internal data-sharing documents are called

Risks

  • Injunction terms restricting the return of health data to advertising platforms such as Meta would hit customer acquisition efficiency and the marketing expense ratio directly
  • The defence that the privacy policy disclosed the sharing may not survive scrutiny of the complaint
  • Discovery would lengthen the case and raise its cost
  • Regulatory uncertainty lasts until at least early 2027 (FTC case, securities class action and peptide policy combined)
  • Only MLex has reported so far, and the judge's specific reasons are not yet public

Sources 3

  1. MLex, 30 Oct: report on the first case management conference in FTC v Hims (paywalled)
  2. US District Court for the Northern District of California, case no. 3:26-cv-07871, Judge Vince Chhabria
  3. Hims motion to dismiss, 22 Oct

A brief is a lead for our research, not a verified conclusion or advice.