Cerebral
Telehealth ADHD prescribing at scale attracted DEA scrutiny and a DOJ investigation for potential controlled substance fraud.
2020 → 2024
$300M
Healthcare/Telehealth
USA
IdeaProof AI Failure Score
What Happened: The Timeline
2020
Cerebral founded for online mental health treatment
2022
Reaches $4.8B valuation, 4,500 employees
2022
Reports of over-prescribing stimulants, DEA investigation
2024
Founder charged with fraud, massive downsizing
Root Causes
Cerebral was a telehealth startup specializing in mental health, particularly ADHD and anxiety. The company grew explosively during COVID, reaching a $4.8B valuation. But reports emerged that Cerebral was aggressively prescribing controlled substances (Adderall, Xanax) with minimal evaluation. The DEA and DOJ launched investigations. CVS and Walmart stopped filling Cerebral prescriptions. The company downsized dramatically and founder Kyle Robertson was charged with fraud in 2024.
Sources & References
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