Key facts
- Vishal Garg claims Better was gaining momentum under his leadership before his removal as CEO.
- Garg stated that funded loan volume and net revenue increased significantly after a strategic pivot to an AI-driven platform.
- He disputed Better's characterization of the company's historical losses and stock price decline.
- Garg alleged that Daniel Lewis, who replaced him as CEO, misrepresented his position on board and compensation changes.
- Better sued Garg, accusing him of violating U.S. securities laws in his campaign to regain control.
- The company disputed Garg's claims of majority shareholder support, citing a filing showing 13.7% control.
Vishal Garg, founder of Better Home & Finance Holding Co., is contesting his termination as CEO, asserting in court filings that the company was progressing under his leadership. Garg's declaration, filed in the U.S. District Court for the Southern District of New York, argues against Better's claims regarding his performance and the circumstances of his removal.
Garg stated that following a strategic shift to an artificial intelligence-driven platform, funded loan volume and net revenue increased approximately 2.5 times, while operating expenses as a percentage of funded loan volume decreased by more than half. He also reported an expansion in the company's contribution margin from 6.9% to 28% over five quarters. Garg disputed the company's portrayal of historical losses and stock price decline, attributing them to strategic investments and industry-wide high mortgage rates.
He highlighted shareholder support, noting he received 99.53% of votes cast for his reelection to the board at the June 10 annual meeting. Garg also alleged that the board was considering a substantial performance-based equity award for him, valued at over $6 million, in May, which he declined due to concerns about stock-based compensation practices.
The filing also detailed Garg's relationship with Daniel Lewis, who replaced him as CEO. Garg claimed Lewis initially presented himself as a supportive shareholder but later engaged in private discussions with directors and misrepresented Garg's stance on board and compensation changes. Text messages between Lewis and Garg, dating back to mid-2025, were filed publicly, depicting consistent communication and expressions of mutual regard.
Garg contested Better's description of his Aug. 3 departure as mutually agreed, stating he received no advance notice and was informed of his termination with minimal time to review the press release. He also noted his access to company systems was cut off shortly after. The company's stock price reportedly fell over 43% the following day.
Garg described his efforts to rally shareholders for his return, including claims of support from directors who stated they would resign if he demonstrated majority shareholder backing. However, Garg acknowledged an administrative error led to an incorrect initial calculation of voting power, and subsequent filings did not represent a majority. His group proceeded with a formal solicitation to repeal bylaws and remove directors.
Better's board pushed back, citing over $1.5 billion in net losses since 2022 and a stock price decline of more than 90% during Garg's tenure. The company sued Garg on Aug. 18, alleging violations of U.S. securities laws through an "illegal, scorched-earth campaign" to regain control. Better disputed Garg's claims of majority shareholder support, pointing to an amended filing showing his group controlled 13.7% of the company's shares.