Key facts
- Courts in New York and Delaware have ruled against Better Home & Finance Holding Co.'s defensive measures.
- The rulings allow founder Vishal Garg to continue his proxy campaign to regain control of the company.
- A "poison pill" shareholder rights plan and a special board committee have been suspended.
- Better had sued Garg for alleged securities law violations related to his proxy solicitation efforts.
- The board of Better has criticized Garg's past leadership, citing significant net losses and market value decline.
Recent court decisions in New York and Delaware have significantly advanced Better Home & Finance Holding Co. founder Vishal Garg's bid to regain control of the company. Judges declined to halt Garg's proxy campaign on an emergency basis, while simultaneously suspending Better's defensive measures, including a shareholder rights plan, commonly known as a poison pill, and a special board committee.
Garg, who was removed as CEO in early August 2026, has been actively soliciting shareholder support to replace directors and return to the chief executive role. Better had sued Garg in federal court, alleging violations of securities laws related to his disclosures and proxy solicitations. However, Judge Margaret M. Garnett rejected Better's request for a temporary restraining order and preliminary injunction, stating the company had not demonstrated irreparable harm.
In a separate ruling, Delaware Vice Chancellor Lori W. Will sided with Garg, granting a temporary restraining order that halts the operation of Better's poison pill and suspends the special board committee. The poison pill was designed to make a change-of-control attempt difficult by allowing other shareholders to buy additional shares at a discount if a person or group acquired 15% or more of the company's stock or voting power.
A Better spokesperson declined to comment, referring to a shareholder letter from the board that characterized Garg's campaign as "self-serving." The board highlighted Garg's "poor track record as leader," citing over $2 billion in net losses and a more than 90% loss of market value during his tenure. The board urged shareholders to reject Garg's "baseless and distracting campaign."
Both court rulings are limited to temporary relief, and the underlying disputes regarding Garg's disclosures, Better's defenses, and the company's governance remain pending.