Cerebral
The mental health platform let go of 15% of its workforce.
In letters to Monument, Workit Health and Cerebral, the senators expressed concern about reports that the companies are sharing health data with third parties like Google and Facebook.
In the suit, the digital mental health company said ousted cofounder Kyle Robertson defaulted on a nearly $50 million loan he took out from Cerebral early this year.
A Cerebral spokesperson said the cuts were "focused specifically on realizing operational efficiencies while prioritizing clinical quality and safety across the organization."
According to the Wall Street Journal's reporting, the Federal Trade Commission is investigating whether the startup was involved in deceptive or unfair marketing or advertising practices.
The program comes a week after the digital mental health company replaced its CEO.
Dr. David Mou, who has served as the company's president and chief medical officer, will replace cofounder Kyle Robertson as CEO effective immediately.
Cerebral is halting prescriptions such as Adderall and Xanax for current and new patients.
The digital mental health unicorn confirmed it received a grand jury subpoena from the U.S. Attorney's Office for the Eastern District of New York on the evening of May 4.
The suspension comes as the digital mental health company faces increasing pressure over its prescription practices, particularly for ADHD medications.