Outcome Health leaders step down to settle fraud allegations
Chicago-based Outcome Health has settled with its major investors over allegations it provided false information, but the deal forced co-founders CEO Rishi Shah and president Shradha Agarwal to step down from day-to-day operations.
Outcome Health offers an advertising platform in physician’s offices for pharmaceutical and other companies by installing tablets and screens which display a mix of ads and educational content. The company had been valued at more than $5 billion last year. In Oct. 2017, however, the company was sued by investors Goldman Sachs, Google parent Alphabet and Pritzker Venture Capital Group for allegedly misleading customers by selling ads for more screens than Outcome had actually installed.
The settlement means Shah and Agarwal will move to the board of directors. Along with investors, they put another $159 million into the business, $77 million of which will be used to pay down debt.
“All parties are reinvesting and share a common belief that the business model works,” Shah said in a statement to the Chicago Tribune. “This is an important milestone event that will instill confidence in the company among our valued employees, customers, partners and key stakeholders.”
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.