Cerebral is suing its ousted co-founder Kyle Robertson, alleging that he never repaid a loan received from the digital mental health company.
according to a lawsuit Filed last week in New York, Cerebral said Robertson defaulted on a nearly $50 million loan he took out in January to buy 1.06 million shares of the company’s common stock. Cerebral alleges that Robertson is personally liable for more than half of the loan amount, plus interest and attorneys’ fees.
The lawsuit said the co-founder of the digital mental health startup had the option to pay in cash or direct Cerebral to buy back or cancel the pledged shares. Cerebral alleges that Robertson “repeatedly asserted that he would not repay the loan despite his obligation to do so under the promissory note within six months of its termination.”
robertson was replaced as CEO from the company in May, when Cerebral faced mounting controversy over its prescribing practices, particularly for controlled substances like Adderall. He did not immediately respond to a request for comment from Bloomberg about the lawsuit.
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The embattled mental health company raked in a lot of investor dollars last year, including a $300 million increase announced in December 2021. In April, a former Cerebral executive sued the company claiming he was fired after speaking out about unethical prescribing practices. Cerebral said he believed the allegations were “unsubstantiated.”
In May, the company confirmed that it had received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York regarding possible controlled substance violations. The Wall Street Journal has also reported that Cerebral is under investigation by the Federal Trade Commission. The company has said so. stopped prescribing most controlled substances.
Earlier this month, Well-informed person reported on a leaked letter from Robertson, arguing that Cerebral unfairly blamed him for the company’s prescribing policies that he faced homophobic comments from Cerebral executives and directors. The letter requested internal documents and records, which could be a sign of a possible upcoming lawsuit.
