The CEO of Better.com, Vishal Garg, has found himself under the spotlight for once again letting a bunch of people down, and this time it's his investors.
Garg, who notoriously fired over 900 people over a Zoom call right before Christmas, is now being sued by a former executive who alleges he misled investors.
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Over a year ago, Better.com, an online mortgage company, agreed to go public after settling on a $7.7 billion merger with a blank check firm, but the deal still hasn't closed, reported CNN.
Since making the agreement, mortgage rates have surged, and Garg's public controversy has put the company in the headlines for all the wrong reasons.
According to the lawsuit against him, the former executive vice president of the company, Sara Pierce, claimed that Garg misrepresented Better.com to make sure the merger went through.
Pierce alleges that Garg was worried that investors would withdraw from the merger due to Better.com's financial instability.
She is suing both Garg and Better.com for misleading investors and providing them with false statements about the firm's financial condition.
The former executive VP filed the complaint in a federal court in New York on Tuesday.
Since being served the lawsuit, Better.com has come out with a statement to the Wall Street Journal in which they claim that they "reviewed the claims in the complaint and strongly believe them to be without merit."
"The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit," the representative for the company added.
Pierce also alleges that she was forced out of her role in February when she voiced her concerns about Garg's decisions, reported Protocol.
Apparently, Pierce had also warned him against his layoff plans as it violated California's Warn Act, but he still went forward with it.
One thing is for sure; things could be going Better for Garg these days.
The Better.com CEO Who Fired 900 Staff Via Zoom Is Getting Sued For 'Misleading Investors'
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