Outcome Health founders step down from board
The founders of Outcome Health, Rishi Shah and Shradha Agarwal have stepped down from the company’s board, just six months after they resigned from their respective CEO and president roles.
The news comes just days after Matt McNally was named the company’s new CEO. Outcome Health also announced four new board members last week. Matthew Ray, one of the new board members will serve as chairman.
The announcement said the founders stepped down “to provide clear leadership transition for the new management team” and expressed support for McNally in his CEO role.
Shah and Agarwal’s departure is just the latest in what has been a tumultuous year for the digital health unicorn. Outcome Health has been embroiled in legal issues that emerged after its first fundraising round with a $5.5 billion valuation.
The company’s investors -- including Goldman Sachs and Google -- sued Outcome Health in November, claiming Outcome misled advertisers and investors about its performance. As part of the settlement with investors in January, Shah and Agarwal stepped down as leadership.
The pair also invested another $159 million into the company to reduce bank loans and add capital. Outcome Health places screens in doctor’s offices that play both advertisements and education about on health topics and has been attempting to move away from these troubles.