Better Board Accuses Vishal Garg Over Late 10-Q as Founder Seeks to Oust Most Directors
Updated
Updated · The Deep Dive · Aug 14
Better Board Accuses Vishal Garg Over Late 10-Q as Founder Seeks to Oust Most Directors
3 articles · Updated · The Deep Dive · Aug 14
Summary
Better’s board said Vishal Garg was the “sole cause” of its delayed Q2 10-Q, alleging he withheld mandatory representation letters while seeking concessions from the company and directors.
That account clashes with Better’s Aug. 10 SEC notice, which blamed unfinished quarter-end closing procedures; the 10-Q was signed Aug. 11, and interim CEO Daniel Lewis certified it contained no material misstatement or omission.
The board also said counsel reviewed communications suggesting Garg may have been directly involved in conduct that could violate U.S. securities laws, though it disclosed neither the conduct nor the communications.
Garg, through lawyer Alex Spiro, said shareholders with a majority of voting power back removing all directors except Garg, Michael Farello and Hugh Frater, and he paired that push with a $1 salary pledge, $5 million personal investment and a $30 million buyback plan.
The fight lands as Better remains under governance strain: only 4 of 8 directors currently qualify as independent under Nasdaq rules, shares fell about 4.5% to $14.33, and the company still posted a $100.9 million net loss for the first half.