Search Site

SEC Charges Former Executives of Outcome Health with Fraud

A trio of former executives of Outcome Health were charged by the Securities and Exchange Commission (SEC) of engaging in a fraudulent scheme to raise about $500 million for the company from investors.

Charged were CEO Rishi Shah, CFO Brad Purdy and President Shradha Agarwal. Outcome had already agreed to a $70 million settlement with the Department of Justice in relation to the case, and now individuals are seeing enforcement actions.

Case background

According to the civil complaint filed by the SEC, the three executives plus a former executive vice president made false reports to investors indicating a history of exponential growth at Outcome, when the truth was the company was frequently “billing clients and recognizing revenue for ads it never ran.”

The fraudulent financial statements Outcome provided to investors in 2015 and 2016 overstated the company’s revenue by at least 23 percent. The long-term scheme resulted in investors being defrauded out of hundreds of millions of dollars, and allowed executives to enrich themselves by deliberately misinforming their investors.

It remains to be seen what individual consequences each of these three former executives will face. As previously stated, the company already settled criminal claims with the Department of Justice, but the civil suits will take some time to process.

In many cases, these types of fraudulent schemes are only discovered because of the assistance of whistleblowers who work in the accused companies. If you are aware of fraud or any other form of wrongdoing within your company, you have the right to federal protections when you blow the whistle. Contact an experienced whistleblower law attorney at Kardell Law Group for more information about the best way to proceed with filing a claim.

Awards & Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
As Seen In
In his new book, "Standing Up to China: How a Whistleblower Risked Everything for His Country," former client & Author, Ashley Yablon, quotes Attorney Steve Kardell about Whistelblower Law.
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.