On the Eve of AI Healthcare Boom, a Silicon Valley Telemedicine Scandal Shakes the Industry

As artificial intelligence prepares to revolutionize global healthcare, Silicon Valley’s celebrated telemedicine sector has been rocked by a shocking scandal. This is not merely a business fraud case—it exposes the catastrophic consequences when capital frenzy and technological worship override medical ethics.

In November 2025, the U.S. Department of Justice announced that a federal jury in San Francisco found Done, a California digital health company, guilty of illegally distributing ADHD stimulant Adderall and other drugs. Founder Ruthia He and Chief Clinical Officer David Brody also submitted fraudulent claims to obtain reimbursements, involving over $100 million. He was additionally charged with obstruction of justice.

This marks the federal government’s first prosecution against a telemedicine company for illegal drug distribution, sending a clear message: healthcare innovation must never come at the expense of patient safety or the rule of law.

The story traces back to the 2020 COVID-19 surge, when telemedicine demand skyrocketed. Ruthia He, with experience at Tencent and Meta, founded Done Global, leveraging relaxed regulations to offer streamlined ADHD diagnosis and Adderall prescriptions. The company expanded rapidly.

Adderall, a Schedule II controlled substance, is highly addictive and carries significant side effects. Done Global charged $79 per month for online assessments and prescriptions. Media reports revealed that patients could access Adderall too easily. Internal KPIs pressured clinicians: initial consultations were capped at 30 minutes, nurses merely “stamped” prescription renewals without clinical contact, and some prescriptions were issued to deceased patients.

To bill insurance, Done Global submitted false claims, defrauding over $14 million. Even when patients experienced severe side effects, the company continued prescriptions.

He attempted to transfer business to China, delete evidence, and flee while on bail—actions that led to her arrest. She and Brody face up to 20 years in prison, with sentencing scheduled for February 2026.

The scandal has severely undermined public trust in telemedicine, particularly online psychiatric services and prescription practices, while prompting stricter regulatory oversight. Experts predict tighter requirements for initial assessments, mandatory follow-ups, and improved drug screening and medical records.

This case serves as a stark warning: as AI healthcare advances, strong ethical and regulatory frameworks must ensure technology genuinely serves human health.