What Happened to Rishi Shah and Brad Purdy, former CEO and CFO of Outcome Health?
Rishi Shah, co-founder and former CEO, and Brad Purdy, former COO and CFO of health technology startup Outcome Health, were convicted in April 2023 for a massive fraud scheme that targeted clients, lenders, and investors, involving approximately $1 billion in fraudulently obtained funds. Shah was sentenced to 7.5 years in prison in June 2024, while Purdy received 2 years and 3 months in prison in July 2024. The company underwent significant restructuring and its assets were eventually sold following the scandal.
Quick Answer
Rishi Shah, the former CEO and co-founder of Outcome Health, was sentenced to seven and a half years in federal prison in June 2024 for his role in a $1 billion corporate fraud scheme. Brad Purdy, the company's former COO and CFO, received a sentence of two years and three months in prison in July 2024. Shradha Agarwal, another co-founder and former president, was sentenced to three years in a halfway house. The convictions and sentences followed a lengthy investigation and trial, revealing that the executives defrauded clients and investors by misrepresenting the company's performance.
📊Key Facts
📅Complete Timeline11 events
Outcome Health Founded as ContextMedia
Rishi Shah and Shradha Agarwal co-founded ContextMedia, a health technology company aimed at placing screens in doctors' offices.
Fraud Scheme Begins
The fraudulent scheme, involving overbilling clients and misrepresenting advertising performance, began and continued until 2017.
Company Rebrands to Outcome Health
ContextMedia officially rebranded itself as Outcome Health.
Raises $500M, Valued at $5.6 Billion
Outcome Health secured over $500 million in funding from investors like Goldman Sachs and CapitalG, reaching a valuation of $5.6 billion.
Wall Street Journal Report Exposes Allegations
The Wall Street Journal published an investigation alleging that Outcome Health misled advertisers with manipulated information.
Investors File Lawsuit
Investors, including Goldman Sachs and CapitalG, sued Outcome Health and its founders, claiming fraud and breach of contract.
Founders Step Down, Settlement Reached
As part of a settlement with investors, Rishi Shah and Shradha Agarwal stepped down from day-to-day management, reinvesting $159 million into the company.
DOJ Indicts, SEC Files Charges
The U.S. Department of Justice indicted Rishi Shah, Shradha Agarwal, and Brad Purdy, along with other executives, for a $1 billion fraud scheme. The SEC filed parallel civil charges.
Executives Convicted by Federal Jury
After a 10-week trial, a federal jury convicted Rishi Shah, Shradha Agarwal, and Brad Purdy on multiple counts of mail fraud, wire fraud, and bank fraud.
Rishi Shah Sentenced to Prison
Rishi Shah, former CEO, was sentenced to 7 years and 6 months in federal prison for his role in the fraud scheme.
Agarwal and Purdy Sentenced
Shradha Agarwal, former President, was sentenced to three years in a halfway house, and Brad Purdy, former COO and CFO, received two years and three months in prison.
🔍Deep Dive Analysis
Outcome Health, a Chicago-based health technology company founded in 2006 as ContextMedia, rose to prominence by installing screens and tablets in doctors' offices to display health information and pharmaceutical advertisements. By May 2017, the company achieved a $5.6 billion valuation after raising over $500 million from investors. However, this rapid growth was built on a foundation of extensive fraud orchestrated by its top executives, including CEO Rishi Shah, President Shradha Agarwal, and COO/CFO Brad Purdy.
The fraud scheme, active from 2011 to 2017, involved selling advertising inventory the company did not possess and then systematically under-delivering on campaigns while still invoicing clients as if contracts were fulfilled. To conceal these discrepancies, Purdy and others fabricated data and manipulated metrics to mislead auditors, clients, and investors about the company's performance and patient engagement with their devices. This deception allowed the executives to fraudulently obtain approximately $1 billion in debt and equity financing, with Shah and Agarwal personally benefiting from substantial dividends, including a $225 million dividend from equity financing.
Key turning points began in October 2017 with a Wall Street Journal report exposing potential fraud, followed by investor lawsuits in November 2017. In January 2018, Shah and Agarwal stepped down from day-to-day management as part of a settlement with investors, reinvesting $159 million into the company. Federal investigations intensified, leading to indictments by the U.S. Department of Justice and parallel civil charges by the U.S. Securities and Exchange Commission (SEC) in November 2019 against Shah, Agarwal, Purdy, and other executives.
After a 10-week trial, a federal jury convicted Shah, Agarwal, and Purdy in April 2023 on multiple counts of mail fraud, wire fraud, and bank fraud. In June 2024, Rishi Shah was sentenced to seven years and six months in federal prison, followed by three years of supervised release. Shradha Agarwal received a sentence of three years in a halfway house, and Brad Purdy was sentenced to two years and three months in prison in July 2024. The judge noted the scheme was 'driven by greed' and calculated the loss to pharmaceutical clients at approximately $23.3 million, clarifying that the '$1 billion fraud' figure referred to fraudulently obtained financing.
As of April 19, 2026, Rishi Shah, Shradha Agarwal, and Brad Purdy are serving their respective sentences. While appeals are common in such high-profile cases, no specific updates regarding their appeals in 2026 have been publicly reported. The company itself underwent significant restructuring and its assets were eventually sold, with the remaining entity merging and rebranding under the name PatientPoint.
What If...?
Explore alternate histories. What if Rishi Shah and Brad Purdy, former CEO and CFO of Outcome Health made different choices?