A Feb. 2022 trial date has now been been set for a set of former founders and key executives of Outcome Health, the Chicago digital out of home media company.
Rishi Shah, Shradha Agarwal and two other top execs at the company, which had its start as Context Media, are accused to defrauding investors of several hundred million dollars.
The trial is scheduled for Feb. 22 in Chicago, and both Shah and Agarwal have pleaded not guilty to what added up to 26 fraud counts. One of the other execs charged has already pleaded guilty and is said to be cooperating with prosecutors.
The execs are accused of over-billing on ad impressions and falsifying revenue numbers as the company raised outside investment money.
Prosecutors say Outcome raised almost $500 million in equity from big players like Goldman Sachs, Alphabet and Pritzker Group Venture Capital, but $225 million of that went directly to Shah and Agarwal.
The company was a very high flyer in the DOOH space, and is still operating with a different management team. Its premise has always been targeted advertising, marketing and education for big pharma in condition-specific environments, like diabetes and rheumatology clinics.
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for some 14 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia, on Canada’s east coast.