Better Home & Finance investigates Vishal Garg amid board fight and lawsuit

Better Home & Finance Holding Company has launched an investigation into allegations involving founder and director Vishal Garg. A special committee of the board is looking into claims that Garg sought to offer company interests or property to former employees, who are also shareholders, in exchange for support in his campaign to remove five current directors.

The board described the allegations as “credible and serious,” noting that if substantiated, they could raise questions regarding Garg’s fiduciary duties. Garg, who was removed as CEO in August, has disputed the company’s characterization of his campaign, accusing the board of providing a “materially misleading account” of his efforts to secure shareholder consents.

Separately, the company is facing a federal securities class action lawsuit filed in the U.S. District Court for the Southern District of New York. The lawsuit, Gastwirt v. Better Home & Finance Holding Company et al., alleges that investors were misled regarding slowing mortgage conversion rates and the company’s ability to reach a $1 billion monthly funded-volume target.