Better.com controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2026
Better Home & Finance sues founder Vishal Garg in federal court
Lawsuit filed
Better Home & Finance filed a lawsuit in federal court against its founder and former CEO Vishal Garg, accusing him of a "scorched-earth campaign" to regain control of the company, making false statements and failing to file required proxy statements with the SEC before soliciting shareholder support. The company is seeking to nullify the shareholder support Garg claims to have gathered and an injunction barring him from soliciting further investor backing for at least 30 days. Garg denied the allegations and said the only possible securities law violations were committed by interim CEO Daniel Lewis and the board.
Source excerpt
The company requested a legal order to nullify all of the shareholder support Garg claims to have gathered so far, arguing that it was obtained through deceptive practices.
Garg wrote that 'the only people who may have committed securities law violations are Daniel Lewis and the board', referring directly to the newly appointed interim chief executive.
Better Home & Finance has filed a lawsuit against its founder in federal court, accusing the ousted executive of orchestrating a 'scorched-earth campaign' to forcefully regain control of the business.
2022
Layoff communications and WARN Act criticism
Further layoffs in 2022 drew criticism after some employees reportedly received severance payments before formal communications. The company was also accused of structuring dismissals in groups below the threshold that would trigger federal Worker Adjustment and Retraining Notification Act requirements. The allegations were reported as part of broader scrutiny of Better's employment practices.
2022
Investor-disclosure lawsuit
A former senior executive sued Better, alleging that the company had misled investors in its filings. Following a Securities and Exchange Commission investigation that reportedly found no issues, the plaintiff voluntarily dismissed the lawsuit.
2022
Internal termination-list leak
An internal list identifying at least 250 U.S.-based employees expected to be dismissed was leaked in August 2022. The employees who leaked the information were subsequently terminated, adding to criticism of the company's handling of workforce reductions.
2021
Mass layoff and executive-conduct controversy
Better's December 2021 dismissal of approximately 900 employees by videoconference, together with reported disparaging comments by Vishal Garg about employees, triggered intense criticism of the company's management culture. Garg took a temporary leave and returned in January 2022.
2021
Better.com CEO apologizes for handling of layoffs
Company response
After criticism following a mass layoff by Zoom, Better.com CEO Vishal Garg apologized for how he communicated the layoffs and said he had failed to show affected employees appropriate respect and appreciation.
Company response
Apology — Better.com
I want to apologize for the way I handled the layoffs last week.
Source excerpt
I want to apologize for the way I handled the layoffs last week. I failed to show the appropriate amount of respect and appreciation for individuals who are affected and for their contributions to Better,
Vishal Garg, the CEO of Better.com who fired 900 employees over a Zoom call and disparaged them in later comments has apologised after a wave of criticism.
Garg said he was sorry for the way “I handled the layoffs last week” after staff uproar over the video call last Wednesday.
2021
Pine Brook sues Better Mortgage over SPAC deal terms
Lawsuit filed
Pine Brook Capital Partners sued Better Mortgage, alleging that Better tried to force it to accept restrictive investment terms ahead of the planned SPAC merger. Pine Brook asked a Delaware court to invalidate parts of the deal.
Source excerpt
In a July 26 lawsuit, Pine Brook asked a Delaware court to invalidate parts of the SPAC deal.
An early investor in the online home-lending startup Better Mortgage has accused the company of trying to force it to accept restrictive investment terms ahead of its planned SPAC merger.