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Benzinga
Benzinga
Business
Vandana Singh

Jury Convicts Done Global Founder In Adderall Distribution Scheme: WSJ Report

Middletown,,Ct,Usa,-,August,7,,2023:,Adderall,Xr,In

A federal jury has convicted Ruthia He, the founder of the telehealth startup Done Global, for orchestrating a scheme that transformed the company into an unrestricted source for Adderall prescriptions. Prosecutors argued that this case highlighted serious abuses in online mental health care, as reported by the Wall Street Journal.

Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is the largest manufacturer of brand-name and generic Adderall, the most commonly used to treat attention deficit hyperactivity disorder (ADHD).

In June 2024, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and TikTok banned Done Global from advertising on their platforms amid a widening federal crackdown on the telehealth company's distribution of Adderall and other stimulants.

Jurors concluded that He and Done's former top medical officer, David Brody, conspired to distribute controlled substances to more than 100,000 patients through lax prescribing practices that prioritized growth and revenue.

He and Brody were found guilty on two conspiracy counts and four counts related to the illegal distribution of controlled substances. He, the company's former chief executive, was also convicted of obstructing justice. Both face potential decades-long prison sentences, with sentencing set for February.

The verdict caps years of scrutiny following reporting from The Wall Street Journal between 2022 and 2024.

Those reports detailed claims from some Done clinicians who said they felt pressured to quickly approve stimulant prescriptions, often in minutes, without thorough evaluations. Others described an environment where speed and volume were rewarded.

Done has repeatedly argued that it operates as a technology platform that connects patients with medical professionals, not a prescribing entity.

The company has defended its clinicians and said medical providers rely on their judgment when choosing whether to prescribe controlled medications such as Adderall.

During the seven-week trial, the Wall Street Journal reported that prosecutors said He built a business model that made obtaining stimulants alarmingly simple. The Department of Justice alleged the company generated more than $100 million in revenue by capitalizing on high-demand ADHD medications.

Defense attorneys countered that He and Brody were trying to expand access to mental-health services amid a nationwide shortage of providers.

The WSJ report said that several clinicians described minimal oversight, including one who admitted she issued prescription renewals without follow-up visits. A patient testified she received an Adderall prescription after an appointment lasting "less than five minutes," the report added.

One Done patient later died after receiving an Adderall prescription, despite having a known history of opioid addiction. A clinician said a prescription-monitoring database showed "no red flags," though experts testified standard ADHD evaluations should take at least an hour and include a full medical history.

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Photo by Veronica Winters via Shutterstock

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