San Mateo, Calif.-based birth control and telehealth startup The Pill Club declared Chapter 11 bankruptcy.
California officials have alleged that the company fraudulently charged
the state's Medicaid program for contraception and counseling that were
never provided by clients. After the allegations surfaced, several
business partners terminated their contracts, causing a 60% revenue
drop, per CEO Elizabeth Meyerdirk.
- A few months earlier, the firm agreed to an $18.275M settlement with California regulators.
- The firm is expecting other states to launch investigations into the firm's billing practices.
- The Pill Club is looking to sell the organization to an undisclosed potential buyer.
- The startup was backed by TriplePoint Venture Growth BDC Corp, which also holds a second lien claim on the company's assets.
- TriplePoint is also the collateral agent to a $30M loan availed by the firm.
