Outcome Health Says CEO Rishi Shah Has Resigned, Lawsuit Settled

Outcome Health on Friday said it is replacing founder Rishi Shah as chief executive and agreed to settle a lawsuit brought by investors, which had alleged the company defrauded them months after they invested nearly $500 million.

As part of the settlement, the Chicago company said investors, lenders and the founders are “recommitting” $159 million to Outcome to help reduce its debt and reinvest in its operations. A person familiar with the deal said all of the money is coming from the founders, who had received a $225 million...