Hims & Hers Shorts Up $1.3 Billion This Year on Legal Risk

A rout in Hims & Hers Health Inc. has delivered a windfall to short sellers, as investors bet against the telehealth company’s business.

Shares have tumbled more than 50% this year through Thursday’s close after Novo Nordisk A/S said it was suing the company to halt obesity-drug copycats. The decline has handed short sellers more than $1.3 billion in paper gains so far, according to S3 Partners managing director Matthew Unterman.