Better Home Sues Founder Vishal Garg Over Claimed 52% Shareholder Support
Updated
Updated · Forbes · Aug 18
Better Home Sues Founder Vishal Garg Over Claimed 52% Shareholder Support
3 articles · Updated · Forbes · Aug 18
Summary
A New York federal complaint accuses Vishal Garg of violating two securities laws by trying to reclaim the CEO job after Better Home removed him on Aug. 3.
Better Home says Garg solicited investors through press releases, texts, social media and a Bloomberg interview, where he allegedly falsely claimed he had already secured 52% of shareholder votes without required SEC proxy filings.
The board, voting unanimously without Garg, ousted him after net losses topped $1.5 billion since 2022 and the stock fell more than 90% during his tenure.
Better Home asked the court to void any shareholder backing Garg obtained and bar him from seeking more support for at least 30 days.
The lawsuit revives scrutiny of Garg's leadership at the SoftBank- and Goldman-backed lender, which has faced years of controversy over his treatment of staff and internal-control failures.