Key facts
- Vishal Garg announced three director candidates for Better Home & Finance Holding Co.'s board.
- Garg is seeking shareholder support to remove current directors and add his nominees.
- Garg has extended the deadline for his shareholder campaign to October 2.
- Better stated Garg has not delivered consents demonstrating 50.1% shareholder support.
- Two proxy advisory firms, ISS and Glass Lewis, recommended shareholders support Better's current board.
- Better sued Garg on August 18, alleging unlawful solicitation and disclosure violations.
The battle for control of Better Home & Finance Holding Co. intensified on Friday as founder Vishal Garg nominated three individuals to join the company's board. Garg, who was ousted as CEO in early August, is seeking shareholder consent to replace current directors, including interim CEO Daniel Lewis, with his chosen candidates. He has pushed back the deadline for his shareholder campaign multiple times, now targeting October 2.
Better's special committee responded by urging shareholders to revoke any consents supporting Garg's proposals. The company stated that Garg has not provided sufficient evidence of shareholder support, particularly from public shareholders, and that his campaign is costly and disruptive. The committee highlighted that two major proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, have advised shareholders to back the existing board.
Garg's proposed directors are Bing Gordon, David Heidecorn, and Steve Sarracino, all of whom have indicated willingness to serve if Garg's campaign is successful. Garg also indicated he would seek a new permanent CEO and hire an executive search firm if he regains control. Better's board, however, has characterized Garg's actions as a "personal vendetta" and stated the company is moving forward under new leadership, pointing to progress made since his departure and cumulative net losses during his tenure.
The dispute has led to legal action, with Better suing Garg for alleged unlawful solicitation and disclosure violations. A federal judge, however, declined to halt Garg's campaign, allowing it to proceed while the broader legal dispute continues. Garg has also filed lawsuits against Lewis and other directors. The company is directing shareholders to use a white consent revocation card, while Garg's group is distributing a green consent card.