Cerebral Pays $3.6 Million to Settle Charges of Unauthorized Distribution of Controlled Substances

December 4, 2024

Cerebral Inc., a telepsychiatry provider, has agreed to a $3.6 million settlement with the U.S. Attorney’s Office for the Eastern District of New York, resolving allegations of unauthorized distribution of controlled substances. From 2019 to 2022, Cerebral allegedly pressured providers to overprescribe ADHD medications like Adderall, setting high targets for initial prescriptions and aiming for a 100% prescription rate for ADHD patients. The company's practices reportedly led to risks of overprescribing, misdiagnosis, and drug diversion. Under a non-prosecution agreement, Cerebral will forfeit $3.65 million in revenue linked to these practices and could face an additional $2.92 million fine if it fails to meet compliance terms over the next 30 months.

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