Cerebral

Laid off 4% pre-Cisco acquisition. Cisco integration expected to bring more cuts.

Former VP of product and engineering Matthew Truebe filed whistleblower lawsuit alleging Cerebral "egregiously put profits and growth before patient safety" including overprescribing ADHD medications. Company received grand jury subpoena from U.S. Attorney's Office for Eastern District of New York for possible Controlled Substances Act violations over prescribing practices. FTC also investigated potential deceptive advertising practices.

Mental health startup Cerebral conducted three layoff rounds in under a year: ~350 employees in June-July 2022, 20% of workforce in October 2022, and 15% (~285 employees) in early 2023. The cuts came amid Department of Justice investigation into prescribing practices and FTC probe into business practices. CEO David Mou said reductions were "a business decision to align with company needs."