Outcome Health's co-founders have resigned from the company's board, Outcome announced Thursday.
Rishi Shah and Shradha Agarwal have stepped down from their chairman and vice chairman roles, respectively, just days after the company announced it had hired new CEO Matt McNally to take over the embattled tech company. Shah and Agarwal left their day-to-day roles with the company in January as part of a settlement with investors who had sued the company for fraud.
A company press release said the two left the board "citing a desire to provide clear leadership transition for the new management team." The statement added that they expressed support for McNally's appointment as CEO.
Shah and Agarwal's move to leave the board is the latest twist in the year-long saga that saw Outcome go from a business with a $5 billion valuation to a company facing fraud allegations from its investors. Outcome, which makes advertising-enabled digital wallboards for doctors’ offices, was accused of misleading advertisers on how many ads it actually delivered. Outcome was sued by its investors, including Goldman Sachs, the Pritzker Group and Alphabet, who pumped nearly $500 million into the business last spring.
Outcome settled the lawsuit in January, and as part of the deal Shah and Agarwal stepped down from their roles as CEO and president, respectively. The settlement also required the company to add more independent board members, which Outcome announced last month. Among the new board members are LinkedIn executive Mike Gamson and former Sears CFO Robert Schriesheim.
Outcome brought in McNally, a former Publicis executive, on June 14. In Thursday's press release, McNally stated: “I am excited about the opportunity to build on the operational transformation currently underway at Outcome Health as we work closely with our advertising and healthcare partners to deliver impactful information at points of care nationwide. I believe deeply in Outcome Health’s mission and I look forward to working with our talented leadership team as we lead the business into its next chapter.”
