Outcome Health

Outcome Health is a Chicago-based healthcare technology company founded by Rishi Shah. Its registered name is ContextMedia Health LLC.^[1] It is majority owned by Littlejohn & Co., a private equity firm.^[2] 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."^[3]

History

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.^[4] This is the largest single funding round in Chicago since Groupon in 2011, when it raised $950 million in its fifth funding round.^[5]

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.^[1]^[6] 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."^[1]

In November 2017, COO Vivek Kundra left the company.^[7] Also in November, several advertisers stopped working with Outcome Health and investors sued the company claiming fraud and breach of contract.^[8]^[9]

As of January 2018, Outcome Health decided to settle outstanding investor lawsuits in exchange for having Shah and Agarwal step down.^[10]

In June 2018, Matt McNally, former chief media officer at Publicis Health, was announced as the company's new CEO.^[11]

On November 25, 2019, four former executives were indicted^[12] 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.^[13] On April 11, 2023, Shah, Agarwal, and Purdy were found guilty of multiple counts and await sentencing, facing up to 30 years in prison.^[14]^{[needs update]}

References

^ ^a ^b ^c 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

Official website

Winkler, Rolfe (13 October 2017). "Outcome Health Misled Advertisers With Manipulated Information, Sources Say". WSJ. Retrieved 11 November 2017.

This article about a medical, pharmaceutical or biotechnological corporation or company is a stub. You can help Wikipedia by expanding it.

This United States corporation or company article is a stub. You can help Wikipedia by expanding it.

[WSJ10122017-1] 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.

[2] Company press release

[3] John Pletz, Crain's Chicago Business, December 2, 2019

[4] Konrad, Alex. "This 31-Year-Old Is Worth $3B For Bringing Drug Marketing Into Your Doctor's Office". Forbes. Retrieved 27 August 2017.

[5] "Chicago's newest billionaire, 31-year-old Rishi Shah, is self-made". Chicago Sun-Times. Retrieved 27 August 2017.

[TC101217-6] Lynley, Matthew (12 October 2017). "Startups advertising In-office medical advertising startup Outcome Health reportedly misled advertisers". Tech Crunch. Retrieved 13 October 2017.

[7] Winkler, Rolfe (2017-11-04). "Outcome Health Loses Operating Chief Vivek Kundra". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-09-24.

[8] Winkler, Rolfe; Vranica, Suzanne (2017-11-05). "Drug Advertisers Suspend Deals With Outcome Health". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-09-24.

[9] Winkler, Rolfe (2017-11-08). "Investors Sue Ad Startup Outcome Health for Alleged Fraud". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-09-24.

[10] Marotti, Ally (29 January 2018). "'Uphill battle' predicted for Outcome Health after settlement with investors". chicagotribune.com. Retrieved 20 February 2018.

[11] Marotti, Ally. "Outcome Health names advertising executive as new CEO". chicagotribune.com. Retrieved 2018-09-20.

[12] "4 health company executives accused in $1B fraud scheme". ABC News. Retrieved 2019-11-26.

[13] Sandler, Rachel. "Former Outcome Health Executives Indicted In Billion-Dollar Fraud Scheme". Forbes. Retrieved 2020-08-28.

[14] "Former Executives of Outcome Health Convicted in $1B Corporate Fraud Scheme". www.justice.gov. 2023-04-11. Retrieved 2023-04-12.

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]

[11]

[12]

[13]

[14]

Outcome Health

History

References

External links

Information related to Outcome Health

Portal di Ensiklopedia Dunia