A former Better.com employee has filed a lawsuit against the company and its CEO, Vishal Garg, alleging that they made false statements to investors about the digital mortgage firm’s financial prospects and performance.
In her lawsuit, Sarah Pierce, a former executive vice-president for sales and operations at Better.com, claimed that Garg misrepresented the company’s statements in order to persuade investors to proceed with a SPAC merger rather than withdraw due to the company’s financial condition.
Better.com’s plan to go public through a merger with Aurora Acquisition Corp, a special-purpose acquisition company (SPAC), was agreed to last year but has yet to close. During the pandemic, SPAC deals were among the hottest investment trends as early-stage companies sought to go public.
Pierce claimed in her lawsuit that she was fired in February in retaliation for raising concerns about the deal. She is looking for monetary compensation.
A Better.com lawyer has dismissed the claims as “without merit.” “The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit,” the attorney continued.
Better.com, headquartered in New York, was founded in 2016 and provides mortgage and insurance products to homeowners through its online platform. Garg fired 900 employees last year over a Zoom call.
