DOJ: Cerebral unable to pay full prescribing fine

Embattled digital behavioral health company Cerebral has agreed to pay the federal government more than $3.6 million in fines but will defer payments on additional charges due to the company's financial condition. 

The Justice Department and Drug Enforcement Administration said Monday that the company has agreed to pay the fines as part of a non-prosecution agreement with the U.S. Attorney’s Office for the Eastern District of New York. An additional $2.9 million fine has been deferred because of Cerebral's "current financial condition," the federal government said. 

Related: Feds fine Cerebral over data sharing allegations 

The DOJ alleges the company engaged in practices that encouraged unauthorized distribution of controlled substances from 2019 to 2022.

A Cerebral spokesperson said in an emailed statement the company was “pleased to announce” it had entered into a non-prosecution agreement. The statement did not answer specific questions about the business's financial health.

Cerebral has endured scrutiny over its prior practice of prescribing controlled substances to treat attention deficit hyperactivity disorder and settled a lawsuit from a former executive alleging unethical prescribing practices. In the non-prosecution agreement, the DOJ alleges the company instituted internal measures to increase prescriptions of controlled medications for the sake of revenue growth.

The mental health company is required to cooperate with and provide information to the United States for the duration of the agreement's 30-month term. 

Monday’s agreement is not the only time the federal government has fined Cerebral. In April, the company agreed to pay more than $7 million in fines for allegedly disclosing consumers' sensitive personal health information and failing to honor its easy cancellation promises.