Outcome Health is a Chicago-based healthcare technology company founded by Rishi Shah. Its registered name is ContextMedia Health LLC. It is majority owned by Littlejohn & Co., a private equity firm. Its founders were indicted and convicted by a federal grand jury on multiple charges of fraud and also sued by the SEC, with veteran tech investor Howard A. Tullman describing Outcome as "our version of Theranos."
History
 | This section needs expansion with: a more complete historical account, including how the venture came to attract a 600M $US round of venture funding in 2017, which cannot be the beginning of the company. You can help by adding to it. (December 2023) |
In May 2017, a funding round with Goldman Sachs, CapitalG, Pritzker Group, and others invested $600 million in Outcome Health, giving it a $5.6 billion valuation. This is the largest single funding round in Chicago since Groupon in 2011, when it raised $950 million in its fifth funding round.
According to a report in The Wall Street Journal unnamed former employees and advertisers accused the company of overcharging their customers for advertisements and misquoting third-party analyses and falsifying documents on the ads' performance. According to the accusations, Outcome Health reported that the ads appeared on more video screens than they had installed. Lanny Davis, a company spokesperson, responded by saying a law firm had been hired to "review allegations about certain employees' conduct that have been raised internally."
In November 2017, COO Vivek Kundra left the company. Also in November, several advertisers stopped working with Outcome Health and investors sued the company claiming fraud and breach of contract.
As of January 2018, Outcome Health decided to settle outstanding investor lawsuits in exchange for having Shah and Agarwal step down.
In June 2018, Matt McNally, former chief media officer at Publicis Health, was announced as the company's new CEO.
On November 25, 2019, four former executives were indicted for falsifying ad performance statements to secure bank loans of nearly $1 Billion. Former CEO Rishi Shah, former President Shradha Agarwal, and former CFO Brad Purdy were charged with several counts of mail, wire and bank fraud, money laundering. On April 11, 2023, Shah, Agarwal, and Purdy were found guilty of multiple counts and await sentencing, facing up to 30 years in prison.
References
- ^ Winkler, Rolfe (October 12, 2017). "Outcome, a Hot Tech Startup, Misled Advertisers With Manipulated Information, Sources Say". The Wall Street Journal. Retrieved 13 October 2017.
- Company press release
- John Pletz, Crain's Chicago Business, December 2, 2019
- Konrad, Alex. "This 31-Year-Old Is Worth $3B For Bringing Drug Marketing Into Your Doctor's Office". Forbes. Retrieved 27 August 2017.
- "Chicago's newest billionaire, 31-year-old Rishi Shah, is self-made". Chicago Sun-Times. Retrieved 27 August 2017.
- Lynley, Matthew (12 October 2017). "Startups advertising In-office medical advertising startup Outcome Health reportedly misled advertisers". Tech Crunch. Retrieved 13 October 2017.
- Winkler, Rolfe (2017-11-04). "Outcome Health Loses Operating Chief Vivek Kundra". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-09-24.
- Winkler, Rolfe; Vranica, Suzanne (2017-11-05). "Drug Advertisers Suspend Deals With Outcome Health". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-09-24.
- Winkler, Rolfe (2017-11-08). "Investors Sue Ad Startup Outcome Health for Alleged Fraud". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-09-24.
- Marotti, Ally (29 January 2018). "'Uphill battle' predicted for Outcome Health after settlement with investors". chicagotribune.com. Retrieved 20 February 2018.
- Marotti, Ally. "Outcome Health names advertising executive as new CEO". chicagotribune.com. Retrieved 2018-09-20.
- "4 health company executives accused in $1B fraud scheme". ABC News. Retrieved 2019-11-26.
- Sandler, Rachel. "Former Outcome Health Executives Indicted In Billion-Dollar Fraud Scheme". Forbes. Retrieved 2020-08-28.
- "Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme". www.justice.gov. 2023-04-11. Retrieved 2023-04-12.
External links
- Winkler, Rolfe (13 October 2017). "Outcome Health Misled Advertisers With Manipulated Information, Sources Say". WSJ. Retrieved 11 November 2017.
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