One of the most notorious CEOs in the country is facing criminal charges for allegedly deceiving investors.
The CEO of Better.com is being sued for misrepresenting his company's prospects while it attempts to go public at a onetime valuation of more than $7 billion.
According to the lawsuit, filed in the Southern District of New York, former Better executive Sarah Pierce was pushed out of the company in retaliation for discussing the issues with Garg.
Garg wouldn't listen to Pierce or anyone else about this issue, and was always exaggerating the company's numbers ahead of its planned merger, according to a source.
Better told the WSJ in a statement that the allegations are not merited.
As an alternative to traditional mortgage lending, Better made its name as property rates plummeted during the first year of the COVID-19 epidemic. It raised $500 million from SoftBank in the first quarter of 2021.
Things began to go south. The housing market started to bounce back and even inflate last fall, as well as Garg laying off 900 people, which accounted for 10% of Better's workforce, ahead of the winter holidays.
The Better's board of directors sent an email to the company saying that CEO Garg was taking time off. Better employees left the company in droves after he returned to the role about five weeks later.
The last year has been a bad one for Better. It seems like the $7 billion merger won't happen soon.
The Wall Street Journal reported that a former executive of Better.com had accused the company of misleading investors.
The guy behind the festival is selling narcotics.
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