According to the Wall Street Journal, one of Better.com's former executives has filed a lawsuit against the online mortgage lender, accusing it and its CEO of misleading investors.
The executive vice president of customer experience, sales and operations at Better.com was let go earlier this year. At that time, it was not known if she left voluntarily or if she was asked to resign.
According to the Wall Street Journal, Better.com is accused of misrepresenting its business and prospects so that it could move forward with a SPAC that would have given the company a post-money equity value of approximately $7 billion. The SPAC hasn't yet happened.
Her complaint alleges that Garg and Better retaliated against her by defaming her.
According to sources familiar with internal affairs at the company, she tried to stand up for the hundreds of employees who were laid off after the CEO publicly described them as lazy and non productive. There was a lot of tension between her and Garg. The majority of the employees who had reported to her were laid off after Garg made comments about them in public.
If Better.com or Pierce comment, the story will be updated.
According to a source familiar with the lawsuit, Garg was always exaggerating the company's numbers and wouldn't listen to anyone who voiced concerns. The source said that she was pushed out of the company for speaking her mind.
According to the S-4 filed by Aurora Acquisition Corp., the entity that Better.com was to merge with, earned $856,061 last year, with a $1 million bonus and $17.37 million in stock options.
The company has been accused of improper behavior before, according to Forbes. The former chief product officer of the company was placed on administrative leave in April of 2021.
Over the past six months, the company has made a lot of news. Better.com laid off about 900 employees via a video call that went global. It wasn't the first company to lay off workers during a global epidemic. It was the way in which it was handled that offended a lot of people.
Garg was criticized for being cold and impersonal. He added insult to injury by accusing workers of stealing from their colleagues and customers by being productive.
Kevin Ryan sent an email to employees saying that the company would have $1 billion on its balance sheet by the week's end. Garg took a month-long break after apologizing for the layoffs. A number of senior executives and two board members resigned.
The company accidentally rolled out the severance pay slips too early after laying off an estimated 3,000 employees.
Better.com swung to a loss of more than $300 million last year, a sharp reversal from its profit in 2020. Garg is the target of a number of lawsuits by investors.
In recent months, customers who say they lost money when the company bungled their house closing, former employees who say they have not been awarded stock options that were owed to them, and others who say they can't collect unemployment are just some of the people who have reached out to the
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