A California Birth Control Startup Goes Bankrupt After False Billing Claims
- The Pill Club seeks buyer after filing Chapter 11 bankruptcy
- Startup says more probes into billing practices are possible
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The Pill Club, a birth control and telehealth provider backed by an affiliate of venture financing firm TriplePoint Capital LLC, went bankrupt after California authorities accused the startup of fraudulently billing the state’s Medicaid program for contraceptives customers didn’t order and counseling sessions it never provided.
The San Mateo, California-based business is trying to sell itself in Chapter 11 as it braces for the possibility that other states will launch additional investigations into its billing practices. The company, also known for a time as Favor, filed bankruptcy months after agreeing to pay a total of $18.275 million to settle California regulators’ claims without admitting wrongdoing.