#7371742 at 2019-11-25 21:51:40 (UTC+1) Q Research General #9428: projectdcomms less than 10 Edition
>>7371404, >>7371465, >>7371480, >>7371534 lb Former Executives and Employees of Health Technology Start-Up Charged in a $1 Billion Scheme to Defraud Clients, Lenders and Investors
They had "issues" with upper mgmt (i.e. Goldman Sachs and Alphabet-parent co.)
Shuffled off to the BOD as Chair and Vice-Chair
Outcome Health, investors call a truce
Outcome Health CEO Rishi Shah has struck a deal with his investors to end a monthslong, bitter and very public feud, allowing them both to focus on rebuilding a once high-flying medical advertising company that has been hurt by lawsuits, allegations of fraud and defections of both customers and key employees.
Shah and co-founder ShradhaAgarwal, both 32, will step aside from day-to-day management as CEO and president of the company, respectively, to become chairman and vice chairman. They'll also join their investors-including Goldman Sachs, Pritzker Group Venture Capital and Google parent company Alphabet-in putting another $159 million into Outcome to pay down bank loans and recapitalize the company.
It's a surprisingly quick end to a very high-profile battle that made plenty of headlines.
"All parties are reinvesting and share a common belief that the business model works," Shah said in a statement. "This is an important milestone event that will instill confidence in the company among our valued employees, customers, partners and key stakeholders."
"The resolution is based on our conviction in the company's mission and path to growth that will be beneficial for all stakeholders," the investors and founders said in a joint statement.
The deal ends at least some of the drama that has engulfed Outcome, a digital advertising company that has suffered an abrupt and stunning fall from its perch as one of the most closely watched and highly regarded companies in the Chicago tech and startup community.
The settlement doesn't end the troubles for the company, which erupted about three months ago, when Forbes and the Wall Street Journal first reported allegations that Outcome had overbilled pharma customers for ads on more screens than it actually operated and reported inflated results of prescriptions related to the ads. Outcome, founded in 2006 as ContextMedia, operates a video network in doctors' offices that displays educational medical content and advertising from pharmaceutical and medical-device companies on TVs and tablet computers.
MORE BOARD SEATS
Shah and Agarwal continue to own a majority of the company, which raised nearly $500 million and was valued at more than $5 billion less than a year ago. And Shah remains the largest shareholder. But the board of directors will increase from three members (Shah, Agarwal and a representative from Goldman, the largest investor) to seven: the founders, two investors and three independents.
#7371534 at 2019-11-25 21:15:39 (UTC+1) Q Research General #9427: You'll Never Walk Alone Again Edition
'''Think it's not her..BUT..
>ShradhaAgarwal performed her PhD thesis in nuclear material science from the French Commission of Atomic and Alternative Energies (CEA), Saclay, France in 2014.
>In her personal time, she enjoys swimming and traveling.
TOP FUCKING KEK
#7371480 at 2019-11-25 21:06:33 (UTC+1) Q Research General #9427: You'll Never Walk Alone Again Edition
>ShradhaAgarwal (pretty much the same as RS)
#7371404 at 2019-11-25 20:51:32 (UTC+1) Q Research General #9427: You'll Never Walk Alone Again Edition
Former Executives and Employees of Health Technology Start-Up Charged in a $1 Billion Scheme to Defraud Clients, Lenders and Investors
Charged in a superseding indictment filed in the Northern District of Illinois and unsealed today are:
Rishi Shah, 33, of Chicago, Illinois, the co-founder and CEO of Outcome Health, which was known as ContextMedia prior to January 2017; ShradhaAgarwal, 34, of Chicago, the president of Outcome Health, who was branded as a co-founder;
Brad Purdy, 30, of San Francisco, California, the chief operating officer and chief financial officer; and
Ashik Desai, 26, of Philadelphia, Pennsylvania, the executive vice president of business operations and, more recently, the chief growth officer of Outcome.
Charged in an information filed in the same district are:
Kathryn Choi, 29, of New York, New York, a senior analyst; and
Oliver Han, 29, of Chicago, an analyst.
LET'S SEE IF THEY'RE COMMIE-CONNECTED
#7371388 at 2019-11-25 20:50:00 (UTC+1) Q Research General #9427: You'll Never Walk Alone Again Edition
U.S. charges former Outcome Health executives over alleged fraud
U.S. prosecutors announced criminal charges accusing the founders of Outcome Health of overseeing a fraudulent scheme to overbill clients and raise $487.5 million in financing from major investors.
Former Chief Executive Rishi Shah, former President ShradhaAgarwal and two other former executives of the pharmaceutical advertising company were charged in a 26-count indictment in Chicago made public on Monday.
The charges were announced by the U.S. Department of Justice four weeks after Outcome agreed to pay $70 million to end its related criminal probe.
Outcome Health streams pharmaceutical ads on televisions and computer tablets it installs in doctors' offices.
Prosecutors said the defendants maintained a facade of "extraordinary revenue growth" through a scheme from 2011 to 2017 in which Outcome overstated its industry connections, billed clients for ads that never ran and inflated revenue.
They said this enabled the Chicago-based company to attract investors, such as affiliates of Goldman Sachs Group Inc, Google parent Alphabet Inc and Pritzker Group, and obtain a $5 billion valuation by 2017. Forbes magazine in 2017 estimated Shah's net worth at $3.6 billion.
Former Outcome Chief Financial Officer Brad Purdy and former Executive Vice President Ashik Desai were also charged in the indictment. Each count names one to three defendants, and Desai was named on one count.
The U.S. Securities and Exchange Commission filed related civil charges against the defendants.
William Burck, a lawyer for Shah, said in a statement that his client was being "scapegoated" for the wrongdoing of others who cut deals with prosecutors. "Mr. Shah will plead not guilty to these charges because he is, in fact, not guilty," Burck said.
Christina Egan, a lawyer for Agarwal, said in response to the SEC lawsuit that her client denied the agency's allegations and would defend herself in court. "Shradha never committed fraud and never participated in any conspiracy," Egan said.
Purdy's lawyer had no immediate comment. A lawyer for Desai did not immediate respond to requests for comment.
Shah and Agarwal co-founded Outcome at 2006 while attending Northwestern University. Prosecutors said Shah owned an 80% stake, while Agarwal owned 20%.
Outcome's $70 million settlement, most of which has been paid, included a three-year non-prosecution agreement.
The company said in May it sold a majority stake to private equity firm Littlejohn & Co as part of a recapitalization.
#206446 at 2018-01-30 03:40:39 (UTC+1) Q Research General #250: New Baker Needed Edition
Big Week stepping down:
Anthem CEO Joseph Swedish
Outcome Health Pres. ShradhaAgarwal
Ancestry CEO Tim Sullivan