Possible outcomes for the Hims & Hers Health, Inc. securities‑fraud class action and the typical timing of each step (based on the information in the press release and standard U.S. securities‑class‑action practice)
| Outcome | What it means | Key dates mentioned in the press release | Typical subsequent timeline (approx.) |
|---|---|---|---|
| 1. Settlement | The defendants (Hims & Hers) and the plaintiffs (the class) reach a monetary agreement that resolves the case without a trial. | • August 25 2025 – deadline for investors to file a motion to be lead plaintiff in the case. • If a lead plaintiff is appointed, settlement negotiations usually start immediately after that appointment. |
• Negotiations can take a few weeks to several months. • If a settlement is reached, a final approval hearing is scheduled by the court, typically 30‑90 days after the agreement is filed. • The settlement becomes effective once the judge signs the approval order. |
| 2. Dismissal | The court throws out the case (or a particular claim) – either because it finds the complaint legally insufficient, the plaintiffs fail to satisfy procedural requirements, or no qualified lead plaintiff is selected. | • August 25 2025 – last day to request lead‑plaintiff status. • If no qualified lead plaintiff is named, the court may dismiss the case shortly after the deadline. |
• If the court decides the case is dismissible, it typically issues a order within 30 days of the hearing on lead‑plaintiff motions. • The parties may appeal the dismissal; an appeal, if filed, adds 6‑12 months (or longer) before final resolution. |
| 3. Trial | The case proceeds to a bench or jury trial because the parties cannot settle and the court certifies the class. | • August 25 2025 – after this date the court will select a lead plaintiff (or determine none). • If a lead plaintiff is appointed and the case is not settled, the litigation moves toward discovery and pre‑trial motions. |
• Discovery phase: usually 12‑18 months after lead‑plaintiff appointment. • Pre‑trial motions & trial scheduling: a trial date is typically set 12‑24 months after the lead‑plaintiff decision. • If the case goes to trial, the trial itself can last several weeks to a few months, after which a verdict (or settlement during trial) is rendered. |
How the August 25 2025 deadline fits into the overall timeline
- Before August 25 2025 – Interested investors must file a motion to be lead plaintiff (often called a “lead‑plaintiff petition”).
- Late August – Early September 2025 – The court reviews all lead‑plaintiff motions, holds a hearing (if needed), and issues a lead‑plaintiff appointment order (or decides no suitable lead plaintiff exists).
- If a lead plaintiff is appointed:
- Settlement talks usually begin immediately; a settlement could be announced as early as September 2025 or later.
- If no settlement is reached, the case proceeds to the discovery phase, which typically lasts 12‑18 months, pushing the earliest realistic trial window to mid‑2027.
- Settlement talks usually begin immediately; a settlement could be announced as early as September 2025 or later.
- If no lead plaintiff is appointed: the court may dismiss the case shortly after the deadline (often within 30 days). The plaintiffs could appeal, extending the timeline.
Bottom‑line summary
- Settlement – can happen any time after the lead‑plaintiff decision (potentially within weeks or months).
- Dismissal – likely within 30 days after the August 25 2025 deadline if no lead plaintiff is named or the court finds the complaint deficient.
- Trial – realistic first possible trial date is 12‑24 months after the lead‑plaintiff appointment, meaning mid‑2027 or later, assuming the case survives discovery and pre‑trial motions.
These timelines are based on the specific deadline highlighted in the press release and on the standard procedural schedule for U.S. securities‑class‑action litigation. Actual dates may vary depending on court scheduling, the speed of settlement negotiations, or any appeals that may be filed.
Other Questions About This News
What is the exposure of HIMS's key executives and board members to potential liability?
How could this lawsuit affect the company's ability to raise capital or maintain existing credit facilities?
Are there any precedents with similar securities fraud cases involving companies in the telehealth/consumer health sector?
What is the potential financial impact of the securities fraud lawsuit settlement on HIMS's balance sheet and cash flow?
Will this litigation trigger any covenants or restrictions in existing debt agreements or credit facilities?
Are there any upcoming regulatory or earnings events that could compound the market reaction to this lawsuit?
What impact could the lawsuit have on HIMS's relationships with partners, suppliers, and insurers?
How likely is it that a significant number of investors will join the class-action lawsuit, and could that lead to a larger settlement?
How might the lawsuit affect the company's stock price volatility in the short term (next few days) and the longer term (months to a year)?