A former employee of Better.com has filed a lawsuit against the company and its CEO, Vishal Garg, alleging that they made false claims to investors regarding the digital mortgage company’s financial prospects and performance. Vishal Garg made headlines a year ago when he fired 900 employees over a Zoom call.
In her case, Sarah Pierce, a former executive vice-president of sales and operations at Better.com, claimed that Garg distorted the company’s claims in order to persuade investors to proceed with an SPAC merger rather than withdraw owing to the company’s financial situation.
Better.com’s proposal to go public by merging with Aurora Acquisition Corp, a special-purpose acquisition company (SPAC), in a $7.7 billion deal was agreed upon last year but has yet to close. During the pandemic, SPAC acquisitions were one of the hottest investment trends as early-stage companies sought to go public.
According to the lawsuit, Pierce claims that she was fired from her job in February as a result of raising concerns about the sale. She’s looking for monetary recompense.
Also read | ‘I embarrassed you’: Better.com CEO apologises for laying off 900 via zoom call
Garg is accused of directing the faltering lender’s bid to merge with a special-purpose acquisition company, or SPAC, according to reports. Garg had accused some of the terminated staff of “stealing” from the company by being unproductive after his well publicised mass dismissal on a video conference call in December.
Pierce claims she pressed the company to issue a statement addressing Garg’s “misinformation” about the fired employees and approached him personally, stating that she “would not assist his false narrative.”
According to the lawsuit, Garg is also accused of misleading investors and directors by telling them that the company would return to profitability in the first quarter of 2022, despite “Pierce and other top management plainly saying that this conclusion was not conceivable.”
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