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Executives and directors of Hims & Hers Health Inc., a leading telehealth company, are facing a shareholder derivative lawsuit in the U.S. District Court for the Northern District of California. The suit accuses the company’s top leadership of enabling the sale of “knockoff” versions of Wegovy, a popular weight loss drug developed by Novo Nordisk, in violation of federal law.

Filed by shareholder Steven Jones, the complaint alleges that Hims & Hers exploited a now-terminated partnership with Novo Nordisk to compound and distribute unauthorized versions of Wegovy, despite the FDA removing the drug’s active ingredient, semaglutide, from its drug shortage list in February. The partnership, which began in April 2025, ended abruptly in June after Novo Nordisk raised concerns about the legality and safety of Hims’ compounded GLP-1 medications.

Novo Nordisk accused Hims of leveraging its online platform to distribute unsafe versions of Wegovy containing potentially illicit foreign ingredients. Following these allegations, Hims & Hers shares dropped nearly 35%, closing at $41.98 on June 23.

Named defendants include CEO Andrew Dudum, CFO Yemi Okupe, and Chief Medical Officer Patrick Carroll. The lawsuit claims they breached fiduciary duties, mismanaged corporate resources, and engaged in insider trading. Dudum is alleged to have sold over 508,000 shares during the partnership, totaling $27.1 million in proceeds.

The complaint also notes that several defendants are facing related securities class action lawsuits currently pending in the same federal district.

The plaintiff is represented by Francis J. Flynn Jr. of the Law Office of Francis J. Flynn Jr., and Shane T. Rowley and Danielle Rowland Lindahl of Rowley Law PLLC.

The case is titled Jones v. Dudum et al., Case No. 3:25-cv-05866.