Ouch!
The most valuable startup in Illinois (Chicago) is being sued by big investors!
I met Rishi Shah several times at MATTER Chicago (Where I used to mentor few startups) during 2014-2015, really nice guy, very warm and smart.
Hope this is all a misunderstanding and there is no “fake it until you make it” fluff. Our Chicago startup ecosystem does not need this type of distraction!
Backers of ad startup Outcome Health have sued the company for fraud and breach of contract, alleging that Outcome Health and its founders induced them to invest by providing false data and financial reports.
The lawsuit comes about five months after the Chicago-based startup raised $500 million at an estimated valuation of $5.5 billion, making it the most valuable VC-backed company in Illinois. Investors including Goldman Sachs and CapitalG filed the lawsuit about a month after The Wall Street Journal found that Outcome Health—which installs video screens in doctors’ offices and charges health-related businesses such as pharmaceutical companies to display ads on them—had billed clients for more advertising than had been displayed.
Major investors sue Outcome Health, alleging firm committed fraud to secure $487.5M investment. Link to Chicago Tribune article: http://www.chicagotribune.com/business/ct-biz-investors-sue-outcome-health-20171107-story.html