United States Sues Telehealth Providers and Executives for Unfair and Deceptive Conduct

The Justice Department, together with the Federal Trade Commission (FTC), today announced that the United States filed an amended complaint against telehealth company Cerebral Inc., Cerebral’s founder and former Chief Executive Officer, Kyle Robertson; former Cerebral executive Alex Martelli; telehealth companies Zealthy Inc., Gronk Inc. and Bruno Health P.A. and an executive of those companies, German Echeverry. The government has settled its claims against Cerebral, Inc. The proposed stipulated order pending approval by the U.S. District Court for the Southern District of Florida would require Cerebral to cease misusing and improperly disclosing patient information, misrepresenting its data privacy or security practices and misrepresenting its cancellation practices. Upon issuance of the order, Cerebral will also be required to pay approximately $5 million in consumer redress in addition to a civil penalty judgment of $10 million, which is suspended to $2 million based on its limited ability to pay.
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