Key facts
- Better's special committee is investigating Vishal Garg for allegedly offering company assets to former employees for their support in removing directors.
- Garg, former CEO of Better, is seeking to replace five current directors with his own nominees.
- Garg claims his group has obtained consents representing over 46% of Better's voting power.
- Better's board removed Garg as CEO in early August.
- Better sued Garg on Aug. 18 for alleged unlawful solicitation and securities disclosure violations.
- A federal judge declined to halt Garg's campaign on Aug. 31.
The internal conflict at Better Home & Finance Holding Co. has intensified as the company's special committee launched an investigation into its founder and former CEO, Vishal Garg. The probe centers on allegations that Garg offered company assets or benefits to former employees in exchange for their support in his bid to oust five current directors, including CEO Daniel Lewis. These allegations were reportedly brought to the company by independent counsel for a former employee who is also a shareholder.
Garg, who was removed as CEO in early August, is actively pursuing a consent solicitation to replace Lewis and four other board members. He claims his group has secured over 46% of Better's voting power and disputes the company's portrayal of his campaign as misleading. Garg has proposed three independent director candidates, Bing Gordon, David Heidecorn, and Steve Sarracino, who would serve if his solicitation succeeds, though their appointments would still require board approval.
Better is urging shareholders to revoke any support for Garg by returning a white consent revocation card, while Garg is encouraging shareholders to sign his green consent card. This public relations battle follows a lawsuit filed by Better against Garg on August 18 for alleged unlawful solicitation and securities disclosure violations, which Garg has called meritless. A federal judge previously declined to halt Garg's campaign.