Investors sue Outcome Health, alleging investment fraud
CHICAGO (AP) — Investors in a Chicago health information and advertising startup are suing the company and its two founders, alleging they committed fraud to secure almost $500 million in funding.
Outcome Health was launched by CEO Rishi Shah and President Shradha Agarwal in 2006. The company delivers pharmaceutical ads to patients on screens it places in doctors’ offices.
The Chicago Tribune reports the lawsuit was filed Tuesday in state court in New York. The investors, which include funds managed by Goldman Sachs Group, Chicago-based Pritzker Group Venture Capital, Google’s parent Alphabet and others, allege Outcome Health misled them. c
Recently, a number of major advertisers and agencies said they pulled tens of millions of dollars in ads from Outcome Health.1q1q
Outcome Health investors asked the court to award damages and require Shah, Agarwal and Outcome Health to return their investments.
Spokesman John Eddy says Shah and Agarwal are calling the lawsuit a “money grab” that “simply is inexcusable and disappointing.”