Better Home & Finance Holding Company (NASDAQ: BETR) has filed a lawsuit in the U.S. District Court for the Southern District of New York against former Chief Executive Officer Vishal Garg, alleging securities violations tied to his efforts to regain control of the company.
The complaint, filed on Monday, accuses Garg of assembling a group of shareholders to support his bid for reinstatement without disclosing the group’s formation, its members, or their arrangements as required under Section 13(d) of the Securities Exchange Act of 1934. The lawsuit also alleges violations of Section 14(a) of the Exchange Act, claiming Garg issued misleading communications and solicited shareholder support without filing a definitive consent solicitation statement with the U.S. Securities and Exchange Commission.
Better stated that Garg had previously agreed to step down as part of a planned leadership transition but later reversed course, attempting to replace the board and reinstall himself as CEO. The company’s lawsuit seeks declaratory and injunctive relief, including an order requiring Garg to file a complete and accurate Schedule 13D disclosure and to correct any materially false or misleading statements. It also requests that all purported consents, authorizations, or expressions of shareholder support obtained through the alleged unlawful solicitation be voided.
In a statement, Better said shareholders do not need to take any action at this time. The company intends to file a preliminary consent revocation statement with the SEC in opposition to Garg’s consent solicitation process.
