Hims & Hers Sued Over Wegovy Maker’s Exit, Record Stock Selloff

Hims & Hers Health Inc. investors have sued the telehealth provider days after Novo Nordisk A/S announced it was ending the companies’ partnership and Hims stock sustained its steepest single-day loss.

Novo reversed course because of concerns about Hims selling compounded versions of a semaglutide weight-loss drug alongside Novo’s branded Wegovy treatment, investors say in two proposed class actions. Ara Yaghsizian and Michael Sookdeo filed their suits Wednesday in the US District Court for the Northern District of California.

“Under federal law, compounding pharmacies are permitted to produce and sell compounded versions of a drug in two situations,” Yaghsizian says: ...