Outcome Health has added four new board members as the company looks to rebound from the fraud scandal that rocked the Chicago tech company last fall.
Outcome announced Thursday that Mike Gamson, senior vice president of Global Solutions for LinkedIn; Robert Pelzer, former president of Novartis Corporation; Matthew Ray, founder and managing partner of Portage Point Partners; and Robert A. Schriesheim, the Chairman of Truax Partners and previous CFO of Sears Holding Corporation, are joining the board of directors.
The move comes as Outcome looks to regain credibility following a lawsuit by its investors. Outcome's backers, including Goldman Sachs, the Pritzker Group and Alphabet, sued the Chicago startup for fraud following an October Wall Street Journal story that found several Outcome employees misled advertisers on the effectiveness of the company’s ads.
Outcome settled the lawsuit with investors in January, and founders Rishi Shah and Shradha Agarwal agreed to step down from their day-to-day roles, transitioning to board chairman and vice chairman, respectively.
Outcome said in a press release that the new board appointments "are a continuation of Outcome’s commitment to governance, transparency and operational excellence." Outcome added that it has joined the International Advertising Bureau to "lead the development of the most rigorous platform and campaign audit standards in the industry." Outcome said it will now offer every customer a third-party "proof of performance" audit on any campaign.
Last year Outcome raised roughly $500 million, valuing the company at more than $5 billion and making it the most valuable private tech company in the state. Just months later, the Wall Street Journal reported that several Outcome employees manipulated ad data, reporting successfully delivered ad campaigns that never appeared on the company's exam room wall boards. Outcome put three employees on paid leave as a result of the investigation, including Chief Growth Officer Ashik Desai.
Outcome is still in search for a CEO after Shah stepped down in January.
