Health

The company is suing Cerebral founder Kyle Robertson over an unpaid loan.

Cerebral, a controversial psychic telemedicine startup, filed a lawsuit in New York on Monday alleging that founder Kyle Robertson never paid back a loan the company gave him for nearly $50 million.

Cerebral alleges that it loaned Robertson $49,768,453.79 on January 24, 2022, allowing him to purchase nearly 1.06 million Cerebral shares. Cerebral alleges that Robertson is responsible for more than $25 million or 51% of the loan’s principal, plus interest and attorneys’ fees, according to a filing in the New York State Supreme Court for the District of New York.

The company alleges that Robertson was required to repay the loan if his time as CEO expired for any reason within six months of that date of resignation. Robertson was ousted from the company in mid-May after mounting criticism of the ADHD prescribing startup, including three lawsuits by former employees and federal investigation.

Cerebral claims that after Robertson stepped down as CEO, he said he would not repay the loan.

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Robertson did not respond to a request for comment. Neither a Cerebral representative nor a lawyer representing the company were immediately available for comment.

The filing follows a letter Robertson sent last week demanding access to the company’s records ahead of a potential lawsuit. In the letter, Robertson accused the company’s investors of pushing him into selling controlled drugs for attention deficit hyperactivity disorder and then using him as a scapegoat amid public backlash.

Last week, the company’s CEO, Dr. David Moe, said he was not interested in a scathing letter that Robertson, a former colleague, sent to the company’s management and investors.

“It’s a distraction. Look forward to,” Mou said in an interview at the HLTH conference in Las Vegas. “I’m here to take care of our patients.”

The contents of Robertson’s letter were first reported business insider.

A spokesman for Cerebral said the claims made by Robertson were untrue and the company intends to defend itself vigorously if a complaint is filed.

After Robertson’s departure, the US Federal Trade Commission reportedly sent a letter to Cerebral requesting information about whether the company continued to charge patients even after they tried to cancel their subscription.

Amid controversy, the company stopped prescribing Adderall and Ritalin in May. At that time Mou said he was saddened by the decision, as he considered them a legitimate first-line treatment for ADHD patients. Cerebral is still prescribing Suboxone, a controlled substance for the treatment of opioid use disorders, Moe said.

This story first appeared in Business and digital health technologies.


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