The investors claim the company misled them with false data and financial reports, Fierce Healthcare reports.
According to the report, investors believe Rishi Shah and Shradha Agarwal, Outcome Health’s founders, are working to shift $225 million held in a subsidiary. Shah and Agarwal deny the allegations.
“We had the right to take out this money, and we did not,” they said. “Instead we decided to make the funds available for the company’s continued growth towards its mission.”