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Better Sues Founder Vishal Garg as He Moves to Reclaim CEO Role

The company says his public solicitation of shareholders violated federal securities rules and asks a court to void approvals and block further solicitations.

Overview

  • On Aug. 3 the board voted to remove Vishal Garg as CEO and named hedge‑fund manager Daniel Lewis interim chief after directors said trust had broken down.
  • Better filed a complaint in the U.S. Southern District of New York accusing Garg of unlawfully soliciting shareholder support, making misleading public statements, and seeking an order to void any consents he collected.
  • Garg says he delivered written consents representing a majority of voting power, has retained lawyer Alex Spiro, and has offered to return as CEO for $1 a year while proposing a $30 million buyback and a personal $5 million investment.
  • The board points to the company's weak results under Garg — more than $1.5 billion in GAAP losses since 2022 and a stock decline greater than 90% — and to past controversies including the 2021 mass Zoom layoffs when explaining his removal.
  • The legal fight and competing vote claims could prompt SEC scrutiny, delay corporate actions or filings, and shape whether shareholders get to decide leadership; the next key milestone to watch is the court’s decision on Better’s request to void consents and bar further solicitations.