Telehealth provider Cerebral has filed a lawsuit against its former CEO Kyle Robertson, alleging he failed to repay a nearly $50 million loan he owes the company.
Cerebral alleges the company loaned Robertson $49.8 million in January so he could purchase more than 1 million shares of Cerebral.
Robertson is on the hook for 51% of the principal amount, or $25.4 million, plus interest and attorney’s fees, the company alleges in a lawsuit filed Nov. 21 in New York Supreme Court, the state’s trial court.
The full principal amount of the loan was due within six months of Robertson’s termination, according to the January promissory note, or loan agreement, the lawsuit alleges.
Robertson was terminated on May 18 by the company’s board of directors, the lawsuit states.
Following his termination, “Robertson repeatedly asserted that he would not repay the loan,” according to the lawsuit.
Robertson did not immediately respond to a request for comment.
David Mou, a physician and Cerebral’s chief medical officer, replaced Robertson as CEO in May after the company said it would pause prescribing controlled substances to new patients. The firm received a subpoena in May from federal prosecutors investigating possible violations of the Controlled Substances Act, according to the Wall Street Journal.
The federal probe followed a WSJ report that detailed how providers felt pressure to diagnose and prescribe ADHD medication to new patients during brief online visits during the pandemic.
Later, the Federal Trade Commission launched an investigation into the telehealth firm amid concerns it may have engaged in deceptive or unfair marketing practices, according to the WSJ.