company

Cerebral

Telehealth platform for mental health services including ADHD treatment. Received $7M FTC fine for privacy violations and $3.6M DOJ settlement for pressuring providers to overprescribe ADHD stimulants.

Track Record

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Cerebral paid $3.6M DOJ settlement for pressuring providers to overprescribe ADHD stimulants

Nov 1, 2024

$3.6M

DOJ settlement found Cerebral engaged in practices encouraging unauthorized distribution of controlled substances (Adderall, Ritalin) from 2019-2022. Company set internal targets to increase 'Initial Visit Rx Rate' for prescribing stimulants, used financial incentives to pressure providers to meet prescribing metrics, and considered disciplinary measures for providers who didn't prescribe enough stimulants.

- Consumer Protection - Research Integrity

Sources: U.S. Department of Justice· Healthcare Dive

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Cerebral fined $7M by FTC for sharing sensitive mental health data with LinkedIn, Snapchat, and TikTok

Apr 15, 2024

$7.0M

FTC issued first-of-its-kind prohibition banning Cerebral from using health information for most advertising purposes after finding the company disclosed sensitive personal health information of nearly 3.2 million consumers to LinkedIn, Snapchat, and TikTok using tracking pixels without proper authorization.

- Data Security - User Privacy - Consumer Protection

Sources: Federal Trade Commission· Psychiatric Times