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Vishal Garg disputes Better CEO termination claims in NY court filing
In his declaration, Garg cites a post-pivot surge, saying funded loan volume and net revenue grew about 2.5 times, while operating expenses as a share of funded loan volume fell by more than half.
Former Better CEO Vishal Garg filed a declaration opposing Better Home & Finance Holding Co.'s request for a temporary restraining order and preliminary injunction in U.S. District Court for the Southern District of New York, disputing the company’s performance and termination claims. Garg said the company’s results should be assessed in the context of a strategic shift from a direct-to-consumer mortgage lender to an AI-driven platform. He told the court that funded loan volume and net revenue increased about 2.5 times after the pivot, while operating expenses as a percentage of funded loan volume fell by more than half. He also alleged that contribution margin rose from 6.9% to 28% over five quarters. Garg pushed back on Better’s portrayal of historical losses and a stock-price decline, arguing it does not account for strategic investments and a period of elevated mortgage rates that weighed on the broader industry. He also said shareholders backed his board reelection, citing 99.53% of votes cast in favor at Better’s June 10 annual meeting. The filing further alleges the board was considering a substantial performance-based equity award for Garg as recently as May, which he said was worth more than $6 million. Garg said he declined the award over concerns about the company’s stock-based compensation practices, and he described Daniel Lewis, who replaced him as CEO on Aug. 3, as having later misrepresented his position regarding proposed board and executive changes.