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.[1] 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."[2]
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.[3] This is the largest single funding round in Chicago since Groupon in 2011, when it raised $950 million in its fifth funding round.[4]
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.[5] 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."[6]
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]