Skip to Main Content
Contribute Try STAT+ Today

Building a health-technology startup on nothing but hot air may be easier than you’d think — at least, according to a federal indictment unsealed Monday and related civil charges brought by the Securities and Exchange Commission.

Federal prosecutors charge that executives at Outcome Health, a high-flying startup, are guilty of defrauding their clients, lenders, and investors, leading to nearly $1 billion in fraudulently obtained investments and debt. The SEC made its own complaint, alleging that Outcome raised $487 million by falsely portraying itself as a success to its investors, which included Goldman Sachs, Google-affiliated CapitalG, and the Pritzker Group.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!


What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
  • There is almost unlimited profit in cheating sick people, harvesting their data and misleading greedy investors. Many of these schemes are not even identified or prosecuted. The failure of the CDC, FDA, and FTC to regulate or enforce the laws that were supposed to protect patients, has not gotten any media attention. The story about Google exploiting patient data, is already old news as our politicians and policy makers, continue to look the other way.

    This is the Market Based Healthcare at its full expression, unmitigated greed is the order of the day. Medicare For ALL would have done away with these types of scams, and the further exploitation of sick people.

    • Some of your points are well taken, but your conclusion is not. Medicare for ALL (and I understand the current en banc position of all remaining Demo prez candidates includes without any limits all “illegal aliens” or “undocumented Democrats” or whomever) will bankrupt this country, a result you know is obvious which is why Liz Warren, for one, refuses to acknowledge it. So, bankrupt but equally miserable, still without sufficient health care, but our data, thank God, is safe even as our children die. Larger families – one response. It seems that those who support Medicare for ALL really want to move backwards, possibly even to the plague-infested Middle Ages, witness the fetid streets of SF or LA or Seattle or Portland.

Comments are closed.