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Greenbrook Announces Board Member Resignation
Greenbrook TMS, a Toronto, Ontario, Canada-based provider of transcranial magnetic stimulation (TMS) therapy in the United States, announced on Friday that Benjamin Klein has resigned from the organization’s board of directors.
At the company’s annual meeting of shareholders on June 20, Klein received more “withheld” votes than “for” votes. He then submitted his resignation as a director, and the board accepted.
Greenbrook operates 133 treatment centers, offering TMS and esketamine nasal spray for the treatment of major depressive disorder (MDD) and other mental health conditions.
In July 2022, Greenbrook announced the closing of its acquisition of Check Five LLC, a Delaware-based company doing business as Success TMS. Klein was the CEO of Success TMS at the time of the acquisition, and as part of the deal, he was appointed as Greenbrook chief operating officer and as a member of the Greenbrook board of directors.
On June 5, sellers of Check Five filed a complaint in the Superior Court of Delaware against Greenbrook, TMS NeuroHealth Centers, and certain executive officers, alleging “contractual fraud, indemnification for breach of certain representations and warranties of the [c]ompany contained in the membership interest purchase agreement, and breach of the implied covenant of good faith and fair dealing,” according to a news release. The complaint sought damages in an amount to be determined at trial.
Greenbrook and other defendants said in the release that the claim was without merit and that the company was evaluating legal options, including a potential counterclaim against the sellers.
Klein, a plaintiff in the complaint, was terminated as COO of Greenbrook in May, but remained a board member until his resignation on Friday.
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