Outcome Health is a

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

-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 In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...

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 Theranos Inc. () was an American privately held corporation that was touted as a breakthrough health technology company. Founded in 2003 by then 19-year-old Elizabeth Holmes, Theranos raised more than US$700 million from venture capitalists a ...

History

In May 2017, a funding round with Goldman Sachs,

CapitalG CapitalG (formerly Google Capital) is the independent growth fund under Alphabet Inc. Alphabet Inc. is an American multinational technology conglomerate holding company headquartered in Mountain View, California. It was created through a r ...

Pritzker Group The Pritzker family is an American family engaged in entrepreneurship and philanthropy, and one of the wealthiest families in the United States of America (staying in the top 10 of ''Forbes'' magazine's "America's Richest Families" list since the ...

, 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 Groupon is an American global e-commerce marketplace connecting subscribers with local merchants by offering activities, travel, goods and services in 13 countries. Based in Chicago, Groupon was launched there in November 2008, launching soon af ...

in 2011, when it raised $950 million in its fifth funding round. According to a report in

The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

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 Lanny Jesse Davis (born December 12, 1945) is an American political operative, lawyer, consultant, lobbyist, author, and television commentator. He is the co-founder and partner of the law firm of Davis Goldberg & Galper PLLC, and co-founder and ...

, 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, CEO 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 The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal sys ...

wire Overhead power cabling. The conductor consists of seven strands of steel (centre, high tensile strength), surrounded by four outer layers of aluminium (high conductivity). Sample diameter 40 mm A wire is a flexible strand of metal. Wire is c ...

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

External links

* Health care companies based in Illinois Companies with year of establishment missing Private equity portfolio companies Companies based in Chicago {{US-company-stub