The Cerebral saga still isn’t done. Telehealth prescriber Zealthy, founded by former Cerebral CEO Kyle Robertson, is in deepening ‘hot water’ with the Department of Justice. The DOJ filed a motion last week in Federal Court seeking an immediate asset freeze and receivership for Zealthy. This is to stop what the DOJ called a “runaway campaign of lawbreaking” by both Robertson and Zealthy, “which is actively deceiving telehealth patients, endangering their safety, and raiding their bank accounts.” The asset freeze and receivership is being requested by DOJ because Zealthy’s liquidity is marginal at best.

Zealthy sells weight loss, birth control, ED, hair loss, mental health, and other prescription medications online. The DOJ is citing them for using the names and licenses of doctors who didn’t work there to fill thousands of prescriptions without the physicians’ knowledge or clinical supervision. The amended complaint states that both Zealthy and Kyle Robertson engaged in “systemic improper and dangerous telemedical practices,” including “the routine ordering of prescriptions by foreign call-center contractors and other non-clinicians with no medical license and the systemic misuse of the name and National Provider Identifier (“NPI”) number of doctors to order many thousands of prescriptions for patients they did not actually treat or order a prescription for, and without their knowledge or clinical supervision—and even when they have not even been employed by Zealthy.” Reportedly, the stolen identity of one doctor was used to write 8,000 prescriptions.

Zealthy lost its medical merchant certification from credentialing organization LegitScript in 2025 after it failed to disclose the DOJ litigation. Ad platforms and payment processors dropped Zealthy, which then created shell companies to get around this. Company executives also used credit cards to buy their own subscriptions, diluting the rate of consumer credit card charge-backs to improve their transaction dispute rates for their bankers.

This is part of the ongoing lawsuit that started in June 2024 around deceptive practices that violated controlled substances, the FTC Act and Restore Online Shoppers’ Confidence Act (ROSCA). Companies named in the original complaint were Cerebral, Zealthy (renamed Gronk Inc), Bruno Health PA, and also named executives Kyle Robertson, former Cerebral executive Alex Martelli, and executive German Echeverry. The DOJ settled the controlled substances distribution charges against Cerebral in late 2024 [TTA 8 Nov 2024] but not the charges against Mr. Robertson, who departed Cerebral in May 2022 at the start of the company’s DOJ and DEA problems. The amended complaint called out Kyle Robertson specifically: “Robertson’s lawbreaking is only becoming more brazen, and dangerous.” Sherwood News, FierceHealthcare, HealthExec, HIStalk