The Federal Trade Commission has begun an investigation into mental-health startup Cerebral, according to a letter the FTC sent the company that was reviewed by The Wall Street Journal.
In the letter the FTC said it was investigating whether Cerebral engaged in deceptive or unfair practices related to advertising or marketing of mental-health services. The letter also directed the company to preserve documents.
Earlier this month Optum said Cerebral will no longer operate within Optum’s behavioral health network after the end of the summer.
That was the second major insurer to end its relationship with the San Francisco-based digital mental health provider in recent days. Aetna, the national health insurance arm of CVS Health, told Cerebral that it will no longer be part of its network as of Aug. 21.
Cerebral is also the focus of both House committee and Department of Justice investigations into the company’s issuance of prescriptions. That was preceded by a downsizing announcement from Cerebral.
The company’s board in May ousted co-founder and CEO Kyle Robertson and named then-Chief Medical Officer David Mou as his successor. Read more.
