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Court allows Garg to continue proxy solicitation at Better Home & Finance
The New York judge declined Better Home & Finance’s bid for an emergency injunction after finding the company did not prove it would face irreparable harm if Garg’s solicitation continued.
A New York court refused to halt Vishal Garg’s shareholder solicitation at Better Home & Finance Holding Co., clearing the way for his proxy campaign to continue despite the company’s securities law claims, HousingWire reports.
The court rejected Better’s request for a temporary restraining order and preliminary injunction, saying Better failed to show irreparable harm would occur if Garg’s solicitation went forward. Judge Margaret M. Garnett also noted that Garg’s amended filings with the SEC incorporated Better’s complaint, which she said informed shareholders about the factual disputes at issue. In her decision, Garnett emphasized the court made no determination about whether Garg’s filings fully comply with securities rules, focusing instead on whether shareholders receive a sufficient “total mix” of information.
Better sued Garg in federal court for alleged violations of Sections 13(d) and 14(a) of the Securities Exchange Act, including claims that he formed an undisclosed group, made inaccurate ownership disclosures, and solicited proxies without a compliant proxy statement. Better Home & Finance said Garg was removed as CEO by the board in early August 2026 and replaced by Daniel Lewis, after which Garg sought written consents to remove certain directors, install his own slate, and return as chief executive, according to company disclosures.
Separately, a Delaware Court of Chancery judge is set to decide on a temporary restraining order that would halt the operation of a shareholder rights plan and suspend a special committee formed to respond to Garg’s campaign. The rights plan, adopted by Better in agreement with Computershare, is designed to make a change-of-control attempt significantly more difficult.