Online mental health company must pay fines for encouraging unauthorized drug distribution

November 4, 2024 Brooklyn Eagle Staff

Share this:

DOWNTOWN BROOKLYN — THE ONLINE MENTAL HEALTHCARE COMPANY CEREBRAL, INC. HAS MADE A NON-PROSECUTION AGREEMENT with the U.S. Attorney’s Office for the Eastern District of New York in Brooklyn and has agreed to pay by special arrangement more than $3.6 million for engaging in practices that encouraged the unauthorized distribution of controlled substances from 2019 to 2022.

Cerebral, which operates primarily as a direct-to-consumer business, promoted or sold subscription services offering online health care treatment, including mental health treatment and medication through its providers. Cerebral expanded to offering treatment for Attention-Deficit/Hyperactivity Disorder (ADHD). Cerebral then augmented its medication offerings to include controlled substances. Beginning in February 2021, Cerebral permitted its treatment providers to prescribe stimulant medication, such as Adderall, a Schedule II drug under the Controlled Substances Act, without consulting with mental health professionals. Cerebral also failed to effective controls against drug diversion. The company must now forfeit $3,652,000 to the United States, and to continue cooperating with and providing information to the United States for at least the 30-month term of the agreement.

Cerebral must also pay a fine of $2,922,000, which has been deferred in light of the company’s current financial condition and inability to pay it.

✰✰✰