Cerebral Settles Federal Inquiry for $3.65 Million

Cerebral, a telehealth mental health provider, has agreed to a $3.65 million settlement to resolve a federal investigation into its unauthorized distribution of controlled substances, including Adderall, from 2019 to 2022. The U.S. Attorney's Office for the Eastern District of New York announced that Cerebral incentivized increased prescriptions, allegedly contributing to a national shortage of the drug. Under a non-prosecution agreement, the company faces a total potential penalty of $6.57 million, with $2.92 million of that fine deferred due to Cerebral's financial circumstances. Investigators highlighted that Cerebral's business practices pressured clinicians to prescribe medications even when not clinically justified. In response, Cerebral stated it has implemented measures to enhance patient-centered care and compliance with regulations. This case underscores the tension between corporate profit motives and ethical healthcare practices.