Better accuses former CEO of unlawful solicitation

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Created: Sunday, 16 August 2026 20:57

Written by Colin McNamara

release Monday, the company said its founder aggressively solicited shareholders in an effort to gain their support, doing so by misrepresenting facts and in a way that violates federal securities laws.

"Despite this improper and unlawful solicitation, Mr. Garg does not have the votes required to implement his boardroom coup, even including the substantial voting power associated with his own super-voting Class B shares," Better said in the release. "Mr. Garg's deluge of press releases and media appearances do reflect his longstanding pattern: he is, as always, focused on himself, making big promises and taking unnecessary risk – and failing to execute."

Garg's public comments have revealed confidential information and created unnecessary risk for Better's plans, business relationships and key strategic initiatives, according to the statement.

The founder laid out his plans for the company in a press release last week, which included a $30 million stock buyback and a $5 million personal investment as part of a 10b5-1 stock plan. Garg said he would complete the sale of Better's banking business in the United Kingdom, which he expects will generate about $74 million, and continue the lender's cost-cutting efforts and growth trajectory as well.

Better's statement also criticized the company's performance under Garg. Since 2022, the lender accumulated more than $1.5 billion in GAAP net losses and its stock price fell 90%. Outside of Better, a jury once found Garg in breach of his fiduciary duties and multiple financial institutions have sued him for "flagrant self-dealing," all of which led to his termination, according to the statement.

The company currently faces a potential legal battle of its own. Multiple law firms have launched investigations into securities fraud regarding Better's disclosures and leadership changes. After the lender named former hedge fund boss Daniel Lewis interim CEO, Better's stock price fell $9.98, or 36.56%, to close at $17.32 per share on Aug. 4.

Lewis has been criticized for taking a vacation to the South of France during his first week on the job, to which he responded, "I couldn't possibly lose $1.5 billion dollars from any location at all," in an X post Friday.

Two weeks ago, the company's board of directors, excluding Garg, unanimously voted to move on from him as CEO, which was initially phrased as a mutual agreement.

Following the drop in stock price, Garg announced in a press release August 13 that he secured support from shareholders representing a majority of the company's voting power to return as CEO. Garg also requested all but two board directors resign and said he would work under a $1 salary until the lender is profitable and undertake an independent search for a long-term CEO.

Better issued a statement Friday morning, which Garg claimed was done without board approval, that said it would not be bullied into actions that don't benefit shareholders, before releasing a more personal attack Monday.

Garg has delivered written consents from stockholders representing a majority of the voting power approving the removal of five members, including Lewis, from the board. If any of them fail to voluntarily resign in response, Garg will submit a preliminary consent statement with the Securities and Exchange Commission, according to a Schedule 13D filing.