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Outcome Health Agrees To Pay $70 Mln To Victims Of Fraud Scheme

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ContextMedia Health LLC, which operates under the trade name Outcome Health, a digital provider of medical information and advertising in doctors' offices, has agreed to pay $70 million to victims of a fraud scheme that targeted its clients, lenders and investors, Justice Department announced.

Outcome admitted that former executives and employees of the company perpetrated a scheme to defraud its clients by selling advertising inventory that it did not have. Most of the clients were pharmaceutical companies.

"Outcome Health deceived its lenders and investors, and overbilled its clients, by fraudulently misrepresenting both the quality and quantity of its advertising services and concealing those misrepresentations from auditors," said Principal Deputy Assistant Attorney General John Cronan. "Today's resolution demonstrates the Criminal Division's unyielding commitment to making whole victims of fraud."

"Outcome's payment of $70 million is an appropriate resolution for the corporate entity given the misconduct of executives and employees acting on its behalf," said Assistant U.S. Attorney Brian Hayes, Chief of the Criminal Division for the Northern District of Illinois. "This resolution demonstrates that there are significant consequences for businesses whose executives and employees engage in fraud."

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