Cerebral Likely Headed for Legal Battle with Former CEO Kyle Robertson

Cerebral Inc. may be headed for a legal battle with former CEO Kyle Robertson, one of the co-founders of the mental health company.

Robertson stopped being Cerebral’s CEO in May, when he was replaced by Chief Medical Officer Dr. David Mou. On Friday, a source told Behavioral Health Business that Robertson has sent a letter to Cerebral requesting access to certain internal documents and records.

The purpose of the letter – a copy of which was obtained by BHB – is to demand that Robertson be allowed to investigate “possible breaches of fiduciary duty, mismanagement and other violations of law” by members of Cerebral’s board of directors. Specifically, the letter focuses on Cerebral’s controlled-substance prescription policies and practices, which have come under fire over the past several months.

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“Cerebral did not initially prescribe controlled substances as a company policy,” the letter reads. “Cerebral’s Directors, however, sought to capitalize on the COVID-19 pandemic and the U.S. Government’s waiver of the Ryan-Haight Act’s in-person appointment requirement for controlled substance prescriptions by pushing aggressive prescription practices that would attract and retain clients.”

The U.S. Department of Justice (DOJ) and other government watchdogs have reportedly been looking into those claims, which Cerebral has repeatedly refuted.

Robertson’s letter also claims that the former CEO was pushed out of the company because of his LGBTQ status.

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In a statement shared with BHB on Friday, Cerebral once again stood behind its practices as a company, while denying that Robertson was dismissed for the reasons outlined in his letter.

“Kyle’s claims against Cerebral and its board are categorically untrue and baseless in law and in fact,” a Cerebral spokesperson wrote in an email. “These claims run contrary to our culture of championing diversity and inclusion and are the antithesis of what we stand for as a company. His dismissal was legitimately executed in the company’s best interests. We will defend ourselves vigorously against these claims.”

Contextually, the letter serves as a “books and records” request. It is significant because it signals that Robertson is preparing for an eventual lawsuit.

Matthew Truebe, formerly the vice president of product and engineering at Cerebral, filed a lawsuit against the company alleging his wrongful termination after raising compliance concerns regarding prescribing practices and data security.

Additional reporting by Chris Larson and Laura Lovett

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