A shareholder derivative lawsuit against mental health care startup Modern Health Inc. survived a dismissal attempt in light of possible conflicts of interest from two tech investors who sat on a special litigation committee that reviewed claims of misconduct against the company’s CEO.

The consolidated litigation against Modern Health, which was brought by the employee mental health platform’s co-founder Erica Johnson and two other shareholders in separate complaints in November 2019, alleges company CEO Alyson Friedensohn made false statements to potential customer Cisco Systems Inc. and failed to implement HIPAA compliance measures for Netflix Inc. The suit also claims Friedensohn failed to disclose a practice of closing deals through “personal kickbacks” in the form of stock shares.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]