About 200 Outcome Health employees—37% of its staff of 535—have taken buyouts.
The staffers will leave the beleaguered healthcare advertising company today through Dec. 8, said a source familiar with the cutbacks. Of the 198 employees leaving, 171 are based in Chicago.
The number of people accepting the buyouts, which includes 90 days of severance, was in line with the company's expectations, the source said.
Outcome, which built a video and advertising network across thousands of doctors' offices, was one of Chicago's hottest tech companies, raising nearly $500 million earlier this year.
Since then, it has come under scrutiny, accused of misleading advertisers with inflated results. The company's investors have sued, saying they were misled into investing because of similar results. They're seeking to freeze $225 million that was owed to founders Rishi Shah and Shradha Agarwal as part of the fundraising.
Advertisers and some partners also have put their relationships on hold, as the company conducts audits to verify advertiser metrics and former U.S. Attorney Dan Webb conducts an internal investigation.
A hearing on the lawsuit by investors, including Pritzker Group Venture Capital, is set for tomorrow in a Delaware court.