Cerebral, a major player in telehealth that provides therapy (for individuals and couples) and prescription services, has drawn national attention since 2022 for a series of legal, ethical, and regulatory issues. These issues align with much broader concerns regarding telemedicine, digital health data, and the regulation of controlled substances in virtual care. While multiple investigations and lawsuits have impacted Cerebral’s trajectory, recent settlements and structural changes signal the company’s desire to reestablish a baseline of trust.
As of June 2025, Cerebral continues to offer both therapy and psychiatry services online. While it didn’t make the cut for our guide to online psychiatrist platforms, we did include it as a potential alternative, as its recurring subscription costs are comparable to some of our favorite platforms, like Brightside Health, Talkiatry, and Talkspace.
When it comes to online therapy, we definitely think there are better options, particularly when it comes to broad insurance coverage, affordable cash-pay options, and accessibility for marginalized groups. Brightside, again, is one we often recommend, as well as BetterHelp, Grow Therapy, and Amwell.
Recent News About Cerebral
Acquisition of Resilience Lab
On August 5th, 2025, Cerebral announced that it acquired Resilience Lab, a group dedicated to training newer mental health clinicians to provide high quality care and help prevent clinician burnout and turnover. It plans on expanding Resilience Lab’s training model and protocols across its platform to up the quality of care it offers, leading to better outcomes for clients and “measurable improvements” for insurance payers.
Brian Reinken, CEO of Cerebral stated in a press release on the matter, “Our mission is to set a new standard for the quality of integrated mental health care. We are combining Cerebral’s clinical breadth, operational consistency and scale with Resilience Lab’s clinical training and rigor to become a center of excellence for clinical care.”
Partnership with San Antonio Spurs
In positive news, early in 2025, Cerebral partnered with the San Antonio Spurs to “raise awareness about mental health, share resources, and advocate for the importance of mental well-being in both the sports world and everyday life.”
Settlement With the FTC
In April 2024, the Federal Trade Commission (FTC) ordered Cerebral to pay a $7 million settlement to resolve allegations of consumer privacy violations and misleading practices related to data sharing and service cancellation. The company agreed to improve its privacy and security infrastructure, simplify the service cancellation process, and limit the use of user data for advertising.
Due to Cerebral’s financial status, a portion of the fine was deferred. The FTC noted the company’s cooperation, and Cerebral released the following statement:
“We are pleased to report that Cerebral has reached a settlement with the Federal Trade Commission to close its investigation into the company. As part of the resolution, Cerebral has agreed to implement enhanced consumer protection, privacy, and compliance measures to further protect the personal information of our clients, increase transparency into our data practices, and implement enhanced data security protocols and tools to allow our clients control over their privacy settings.”
Controversy
Here’s a more detailed look into the controversies surrounding Cerebral:
Prescribing Practices & DOJ Investigation
Cerebral faced intense scrutiny in 2022 over its prescribing practices, particularly the use of controlled substances to treat ADHD. This followed internal allegations from former vice president for product and engineering, Matthew Truebe, who claimed in a lawsuit that he was terminated after raising concerns about potential overprescription practices. His suit alleged internal discussions about prescribing stimulants to ADHD patients as part of a client retention strategy.
In response, a company spokesperson stated:
“We do not comment on the specifics of pending litigation but we believe that the claims alleged in the complaint are without merit. We intend to vigorously defend this matter.”
Amid these developments, the U.S. Department of Justice (DOJ) and the Drug Enforcement Agency (DEA) launched an investigation into Cerebral’s practices regarding controlled substances. The company ceased prescribing most controlled medications to new patients and underwent leadership changes. In May 2022, the board replaced CEO and co-founder Kyle Robertson with then-Chief Medical Officer Dr. David Mou.
Robertson & Cerebral’s Response
Robertson contested his removal, stating that he would pursue all available avenues to challenge it. He also claimed that board members had pressured him to prioritize revenue, including through continued use of controlled substances, and suggested his removal was partially motivated by his sexual orientation.
Shortly after, Cerebral took legal action to recover a $50 million loan made to Robertson, citing repayment obligations triggered by his termination.
In November 2025, Cerebral agreed to a $3.65 million DOJ settlement, but did not admit any liability. As part of the resolution, the company agreed to compliance overhauls and ongoing monitoring.
Learn More:
- MobiHealthNews: Cerebral announces transformation plan amid controlled substance scrutiny
- Bloomberg Law: Ex-Cerebral VP Alleges Unethical Prescription Practices in Suit
- Bloomberg: Cerebral Directors Oust CEO Amid US Prescription Probe
- Behavioral Health Business: Cerebral Sues Ex-CEO Over $50M Loan Repayment
- Business Insider: 2,000 leaked documents and employees say Silicon Valley healthcare startup Cerebral harmed hundreds of patients and prescribed serious medication with abandon
Failing to Verify IDs
In September 2022, The Wall Street Journal reported that Cerebral had failed to verify patient identities despite having access to software capable of doing so. Internal documents reviewed by the outlet suggested that ID verification was deprioritized due to concerns about user retention during a period of high demand amid the COVID-19 pandemic.
The issue drew even more concern following the death of a 17-year-old patient who had received a prescription for an antidepressant known to carry elevated risks for adolescents. According to the report, the company had not obtained parental consent.
Cerebral’s Response
Cerebral stated that the minor had misrepresented their age and issued this response:
“This case is an unfortunate outlier. Any loss of life is tragic, and we extend our deepest condolences to the family.”
Between 2022 and 2023, as it continued to face regulatory scrutiny and legal settlements, Cerebral went through several rounds of layoffs, reducing its overall workforce by roughly 35%.
Learn More:
- The Wall Street Journal: Cerebral Treated a 17-Year-Old Without His Parents’ Consent. They Found Out the Day He Died
- The Wall Street Journal: Startup Cerebral Soared on Easy Adderall Prescriptions. That Was Its Undoing
- The New York Times: The Hazards of Prescribing A.D.H.D. Drugs Online
Privacy Violations & FTC Penalties
Cerebral also came under investigation by the FTC for alleged privacy violations stemming from the integration of third-party tracking tools on its websites and mobile apps. These tools reportedly shared sensitive user data, including medical history, prescription details, IP addresses, and insurance information, with platforms like Facebook, LinkedIn, and TikTok.
The FTC complaint alleged that former CEO Kyle Robertson oversaw misleading practices around user data collection and that deceptive policies around service cancellation continued even after his departure. The agency also alleged that both Robertson and the company violated the Opioid Addiction Recovery Fraud Prevention Act.
Cerebral’s Response
In March 2023, Cerebral filed a notice with the Department of Health and Human Services acknowledging inappropriate use of tracking tools, affecting an estimated 3.2 million consumers. The company removed the tracking pixels, updated its privacy policies, and issued public statements of regret.
The FTC’s $7.1 million penalty, announced in April 2024, included:
- $5.1 million for partial consumer refunds
- $2 million in civil penalties
- Reduced from $10 million due to the company’s financial condition.)
Cerebral agreed to strict data protections, consumer notifications, and optional deletion of previously shared data.
Learn More:
- Federal Trade Commission: Proposed FTC Order will Prohibit Telehealth Firm Cerebral from Using or Disclosing Sensitive Data for Advertising Purposes, and Require it to Pay $7 Million
Additional Organizational Restructuring
In 2025, Robertson’s successor, Dr. David Mou, stepped down as CEO to pursue a new behavioral health venture. He also returned to his role as chief medical officer, saying he would continue advising the company on “clinical quality and safety projects.” Former board member Brian Reinken started acting as interim CEO and president.
Is This an Industry-Wide Problem?
Yes, the challenges Cerebral faced are part of a broader, industry-wide problem that escalated during the COVID-19 pandemic. Between 2020 and 2022, global rates of anxiety and depression rose by an estimated 25%, in part due to isolation and general uncertainty. To improve access, the DEA temporarily relaxed rules around the online prescribing of controlled substances, including stimulants and benzodiazepines.
While these changes helped many people receive care, they also highlighted gaps in oversight and safety, leading to concerns about overprescription, inadequate ID verification, and data privacy. These issues weren’t limited to Cerebral. Other digital mental health providers, including Done, also came under federal investigation for similar issues.
As demand surged, some platforms prioritized growth over safeguards, revealing systemic weaknesses in how telehealth is regulated and monitored in the U.S. These patterns suggest that the Cerebral controversy is not an isolated incident, but part of a widespread tension between access, safety, and accountability in digital mental healthcare.
Is this Issue Resolved?
No, the issue is not fully resolved; not for Cerebral or the broader industry.
That said, Cerebral has moved closer to a complete resolution. The company is also likely now under FTC and DOJ monitoring, meaning regular audits and compliance checks are in their future. Any violations could lead to escalated legal action and penalties. Additional leadership and structural changes are probably still on the horizon.
In regard to the wider problems in the industry, there are still ongoing risks and systemic issues; however, it’s also had a positive effect for many people. According to the DEA and the Department of Health and Human Services (HHS), providers can still prescribe controlled substances via telehealth if they meet certain criteria. These flexibilities are currently extended through December 31, 2025.
Learn More:
- AMA: Why Dea’s Latest Move on Telehealth Could be a Lifesaver
- ADDitude: The Tattered Promise of ADHD Telehealth
Cerebral’s History
Cerebral was founded in January 2020 by Kyle Robertson and Dr. Ho Anh, a former medical director at the telehealth company Hims. By 2021, Cerebral had raised $462 million and reached a $4.8 billion valuation. That same year, the company named Olympic gymnast Simone Biles as its chief impact officer, an endorsement that ended in 2023 amidst allegations against Cerebral for promoting prescription medications too aggressively.
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