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Better Home sues Vishal Garg over alleged securities violations
Better is asking a New York court to require an accurate Schedule 13D, halt further solicitation, and invalidate consents tied to the former CEO’s push to regain control.
HousingWire reports that Better Home & Finance Holding Co. has filed a federal lawsuit against former CEO and founder Vishal Garg, accusing him of violating US securities laws related to how he coordinated with shareholders during a leadership fight. According to the complaint, Better alleges Garg sought to regain control by cultivating a coalition of shareholders without timely disclosures and by soliciting support without the required definitive filings. The lawsuit says the company is pursuing court orders including compelling an accurate Schedule 13D, restricting further solicitation, and invalidating consents the company says were gathered.
The dispute is tied to board control and Garg’s attempt to reinstall himself as CEO, with Better describing what it calls a campaign aimed at replacing directors. The article also notes that Garg did not immediately respond to a request for comment.
The legal action comes after Better announced on Aug. 3 that Daniel Lewis would succeed Garg as interim CEO. Better’s board later pushed back on Garg’s Aug. 13 effort to regain control, and the company points to more than $1.5 billion in net losses since 2022 and a more than 90% decline in its stock price during Garg’s tenure.