Medical advertising company Outcome Health agreed to pay $70 million to victims Thursday in a settlement with the Department of Justice.
Outcome Health places screens and tablets which display educational content into doctors’ offices and then sells advertising space on these to pharmaceutical companies. According to Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office, Outcome purposely and routinely failed to deliver on the promised advertising campaigns they sold to those pharmaceutical companies. Outcome additionally engaged in misrepresentations to conceal this fraud. These included under-delivering on promised campaigns, selling inventory it did not possess, and falsifying affidavits and proof of performance documents. The settlement came about as a result of both FBI and FDIC-OIG investigations.
The settlement will require Outcome to pay $70 million to clients, lenders, and investors that were defrauded. The settlement additionally requires Outcome to take remedial measures including the replacing all of its executives and members of its board of directors. The settlement was reached after Outcome agreed to cooperate with the agencies and began to implement the remedial measures demanded. In exchange for this, the government has agreed not to pursue criminal charges except in the case of tax violations. The government will continue to monitor Outcome for three years, but did leave open the possibility that the term of the settlement may be extended at the government’s discretion.